Exam (elaborations)
CFA Level 1 FRA questions and answers rated A+ 2025/2026
- Course
- Institution
CFA Level 1 FRA questions and answers rated A+ 2025/2026
[Show more]
Content preview
CFA Level 1 FRACurrent Ratio - ANSCurrent Assets divided via present day liabilities
Quick Ratio - ANSCash plus marketable securities plus receivables divided with the aid of
present day liabilities
Cash Ratio - ANSCash plus marketable securities divided through modern-day liabilities
Defensive Interval Ratio - ANSCash plus marketable securities plus receivables divided by
using average each day fees
Cash Conversion cycle - ANSdays in inventory plus days in bills receivables minus days in
debts payable
Accounts receivable turnover - ANSrevenue divided by using average money owed receivable
inventory turnover - ANScost of goods sold divided by way of common inventory
Accounts payable turnover - ANSpurchases divided by means of common debts payable
Cost of Goods Sold - ANSBeginning stock plus purchases minus ending inventory
Operating cycle - ANSdays in inventory plus days in bills receivable
Fixed asset turnover - ANSrevenue divided by way of common net fixed assets
operating capital turnover - ANSrevenue divided by way of average running capital
equity turnover - ANSrevenue divided by way of common equity
debt to fairness ratio - ANStotal debt divided by way of overall equity
debt ratio - ANStotal debt divided by means of total assets
debt to total capital ratio - ANStotal debt divided by way of total debt plus general fairness
Financial leverage ratio - ANSaverage general property divided with the aid of average total
fairness
, hobby insurance ratio - ANSEBIT divided by means of interest payments
Fixed charge coverage ratio - ANSEBIT plus lease payments divided by way of interest bills plus
lease bills
Gross earnings - ANSSales minus price of products sold
Gross earnings margin - ANSgross earnings divided by way of revenue
running income margin - ANSoperating profit divided by means of revenue
pretax margin - ANSearnings before tax divided by means of revenue
Net income margin - ANSnet profits divided via sales
Return on assets - ANSnet profits divided through common total property
Return on Assets - ANSEBIT divided via average total assets
operating go back on assets - ANSoperating earnings divided by average general property
return on overall capital - ANSEBIT divided by average overall capital
Return on Equity - ANSnet profits divided through common general equity
Return on Equity - ANSReturn on Assets times financial leverage
Return on Equity - ANSNet earnings margin times asset turnover times leverage ratio
Return on not unusual equity - ANSnet profits minus preferred dividends divided through
average common fairness
DuPont Formula - ANSNet earnings margin times overall asset turnover times leverage
Net Profit margin - ANSnet profits divided by using sales
Total asset turnover - ANSRevenue divided by means of average belongings
Leverage - ANSAverage assets divided through average fairness
Extended DuPont Formula - ANSTax burden times hobby burden times operating earnings
margin times asset turnover times leverage
Tax burden - ANSEarnings after tax divided by profits before tax
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller QualityPDF. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now