Business analysis, technical accounting, and financial statement analysis topics tested on the CPA BAR discipline section.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- Formula for the current ratio
- Current assets divided by current liabilities
- What does the quick ratio exclude that the current ratio includes?
- Inventory and prepaid expenses
- Formula for working capital
- Current assets minus current liabilities
- Formula for the debt-to-equity ratio
- Total liabilities divided by total stockholders' equity
- Formula for return on equity (ROE)
- Net income divided by average stockholders' equity
- Formula for the gross margin ratio
- Gross profit divided by net sales
- Formula for inventory turnover
- Cost of goods sold divided by average inventory
- Formula for days sales outstanding (DSO)
- Average accounts receivable divided by net credit sales, times 365
- Formula for times interest earned
- EBIT divided by interest expense
- Formula for the asset turnover ratio
- Net sales divided by average total assets
- Formula for the break-even point in units
- Fixed costs divided by contribution margin per unit
- Definition of contribution margin
- Sales revenue minus total variable costs
- What does the degree of operating leverage measure?
- How sensitive operating income is to a change in sales volume
- How does variable costing treat fixed manufacturing overhead?
- As a period expense, not included in product cost
- How does absorption costing treat fixed manufacturing overhead?
- As a product cost, included in inventory