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Wall Street Prep Accounting Exam With 100% Correct And Verified Answers
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Wall Street Prep Accounting Exam With 100% Correct And Verified Answers
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Wall Street Prep Accounting Exam With 100% Correct And Verified AnswersLiquidity Ratios - Correct Answer-measures of a firm's short-term ability to meet its current obligations
Profitability Ratios - Correct Answer-measures of a firm's profitability relative to its assets (operating efficiency) and to its revenue (operating profitability)
Activity Ratios - Correct Answer-Measure of efficiency of a firm's assets
Solvency Ratios - Correct Answer-Measure of a firm's ability to pay its obligations
Inventory Turnover - Correct Answer-COGS / avg inventory
Receivables Turnover - Correct Answer-revenue / average accounts receivable
DSO (Days Sales Outstanding) - Correct Answer-AR/Credit Sales * days in period days in period/receivables turnover
A/P turnover - Correct Answer-COGS / Average A/P
PPP (payables purchasing period) - Correct Answer-days in period/ Accounts payable turnover
Current Ratio - Correct Answer-current assets/current liabilities
Quick ratio (acid test) - Correct Answer-Cash and AR divided by current liabilities
Gross profit margin - Correct Answer-gross profit/revenue
operating margin - Correct Answer-operating profit/revenue
net profit margin - Correct Answer-net income/revenue
asset turnover - Correct Answer-revenue/ average assets
return on assets (ROA) - Correct Answer-Net Income / Average Assets
return on equity (ROE) - Correct Answer-net income/ total equity
Basic EPS - Correct Answer-(Net Income - Preferred Dividends)/(Weighted Average of Shares Outstanding) Diluted EPS - Correct Answer-diluted net income / weighted average diluted shares outstanding
dividend yield - Correct Answer-dividends/net income
debt to EBITDA - Correct Answer-Total Debt/EBITDA
interest coverage ratio - Correct Answer-EBIT/ interest expense
fixed charge coverage - Correct Answer-(EBIT + Lease charges)/(Interest Payments + Lease charges)
Debt to Total Assets - Correct Answer-Total Debt/Total Assets
debt to equity - Correct Answer-total liabilities/total equity
cash from operations (CFO) - Correct Answer-uses net income as a starting point and converts accrual base net income into cash flow from operations via a series of adjustments
cash from investing activities (CFI) - Correct Answer-capital expenditures / asset sales and purchases
cash from financing activities (CFF) - Correct Answer-new borrowing / pay down of debt
/ new issuance of stock / share repurchases / issuance of dividends
working capital - Correct Answer--CFO
-increase in current assets = cash outflow
-increase in current liabilities = cash inflow
asset write downs / impairments - Correct Answer--added back to CFS via CFO
Increases in A/R, inventory, prepaid expenses, other current assets should be _____________ net income to get to CFO - Correct Answer-subtracted
increases in A/P, accrued expenses, other current liabilities should be ____________ net income to get to CFO - Correct Answer-added
gains on sale of assets - Correct Answer-subtracted from CFO
stock based compensation - Correct Answer-added to CFO
Common CFI inflows/outflows - Correct Answer-- capital expenditures - purchases of intangible assets
+ asset sales
+ sales of debt/ equity security
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