Exam (elaborations)
CFA Level 1 FRA Questions and Answers Latest Updated
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Exam of 6 pages for the course CFA at CFA (CFA Level 1 FRA)
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CFA Level 1 FRACurrent Ratio - answer Current Assets divided by current liabilities
Quick Ratio - answer Cash plus marketable securities plus receivables divided by
current liabilities
Cash Ratio - answer Cash plus marketable securities divided by current liabilities
Defensive Interval Ratio - answer Cash plus marketable securities plus receivables
divided by average daily expenditures
Cash Conversion cycle - answer days in inventory plus days in accounts receivables
minus days in accounts payable
Accounts receivable turnover - answer revenue divided by average accounts receivable
inventory turnover - answer cost of goods sold divided by average inventory
Accounts payable turnover - answer purchases divided by average accounts payable
Cost of Goods Sold - answer Beginning inventory plus purchases minus ending
inventory
Operating cycle - answer days in inventory plus days in accounts receivable
Fixed asset turnover - answer revenue divided by average net fixed assets
working capital turnover - answer revenue divided by average working capital
equity turnover - answer revenue divided by average equity
debt to equity ratio - answer total debt divided by total equity
debt ratio - answertotal debt divided by total assets
debt to total capital ratio - answertotal debt divided by total debt plus total equity
Financial leverage ratio - answeraverage total assets divided by average total equity
interest coverage ratio - answerEBIT divided by interest payments
, Fixed charge coverage ratio - answerEBIT plus lease payments divided by interest
payments plus lease payments
Gross profit - answerSales minus cost of goods sold
Gross profit margin - answergross profit divided by revenue
operating profit margin - answeroperating profit divided by revenue
pretax margin - answerearnings before tax divided by revenue
Net profit margin - answernet income divided by revenue
Return on assets - answernet income divided by average total assets
Return on Assets - answerEBIT divided by average total assets
operating return on assets - answeroperating profit divided by average total assets
return on total capital - answerEBIT divided by average total capital
Return on Equity - answernet income divided by average total equity
Return on Equity - answerReturn on Assets times financial leverage
Return on Equity - answerNet profit margin times asset turnover times leverage ratio
Return on common equity - answernet income minus preferred dividends divided by
average common equity
DuPont Formula - answerNet profit margin times total asset turnover times leverage
Net Profit margin - answernet income divided by revenue
Total asset turnover - answerRevenue divided by average assets
Leverage - answerAverage assets divided by average equity
Extended DuPont Formula - answerTax burden times interest burden times operating
profit margin times asset turnover times leverage
Tax burden - answerEarnings after tax divided by earnings before tax
Interest burden - answerEarnings before tax divided by EBIT
Operating profit margin - answerEBIT divided by revenue
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