Wall Street Prep Accounting-Exam 2024 with complete solutions

Liquidity 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