CPA Exam FAR Study Guide with 100% Verified Complete Solutions 2026

CPA Exam FAR Study Guide with 100% Verified Complete Solutions 2026 NFP revenue related to charity care. - Correct Answer NOT recognized on the face of financial statements but is disclosed. When asked to compute the amount of revenues, gains, support etc. you must SUBTRACT charity care revenue Current Ratio - Correct Answer current assets/current liabilities (liquidity) Quick Ratio - Correct Answer (Cash & Cash Equivalents + Net Accounts Receivable + Marketable Securities) / Current Liabilities Debt to Equity Ratio - Correct Answer total liabilities/total equity Total Asset Turnover Formula - Correct Answer net sales/average total assets accounts receivable turnover - Correct Answer net sales/average accounts receivable Inventory Turnover - Correct Answer COGS/Average Inventory Days in Inventory Formula - Correct Answer Ending Inventory / (COGS/365) Working Capital Turnover Formula - Correct Answer sales / average working capital Average Working Capital Formula - Correct Answer Current Assets - Current Liabilities = Working Capital. Take the average of the two years to find Average working capital. Accounts Receivable Turnover Ratio - Correct Answer Sales (net)/ Average A/R Return on Assets Formula - Correct Answer Net Income/Average total Assets