FABM FINANCIAL RATIOS
9 Questions
6 Views

FABM FINANCIAL RATIOS

Created by
@HaleKraken

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

FORMULA FOR CURRENT RATIO

CR=CA/CL

FORMULA FOR QUICK RATIO

QR=CA-PREPAID-INVENTORY OR SUPPLIES/CL

FORMULA FOR ACCOUNTS RECEIVABLE TURNOVER RATIO

ARTR=NET SALES/AVARAGE ACCOUNTS RECEIVABLE (NET)

FORMULA FOR AVERAGE COLLECTION PERIOD

<p>ACP=365 DAYS/ACCOUNTS RECEIVABLE TURNOVER RATIO</p> Signup and view all the answers

FORMULA FOR INVENTORY TURNOVER RATIO

<p>ITR=COST OF GOODS SOLD/AVERAGE INVENTORY</p> Signup and view all the answers

FORMULA FOR AVERAGE DAYS IN INVENTORY

<p>ADII= 365DAYS/INVENTORY TURNOVER RATIO</p> Signup and view all the answers

FORMULA FOR NUMBER OF DAYS IN OPERATING CYCLE

<p>NODIOC= COLLECTION PERIOD + AVERAGE DAYS IN INVENTORY</p> Signup and view all the answers

FORMULA FOR BAD DEBTS

<p>BD = TOTAL LIABILITIES/TOTAL ASSETS</p> Signup and view all the answers

FORMULA FOR DEBIT TO EQUITY RATIO

<p>DTER = TOTAL LIABILITIES/TOTAL EQUITY</p> Signup and view all the answers

More Like This

Flexible Asset-Backed Mortgage (FABM) Quiz
12 questions
Fundamentals of Accounting (FABM)
10 questions
FABM 2: Introduction to Accounting
9 questions
Use Quizgecko on...
Browser
Browser