Accounting FSA Exam with 100% correct answers 2024

Current Ratio - answer-Ability to pay it's short term ratio Current Ration: Which is better - answer-Higher is better Acid Test Ratio - answer-Asses accompanies ability to in current debt with liquid assets. Acid Test Ratio: Which is better - answer-Higher means the more money the company has to pay off. Accounts Receivable Turnover - answer-How often receivable are received during the period. Accounts Receivable Turnover: Meaning - answer-Higher means that the most often they are getting there money. Inventory Turnover - answer-Number of times inventory is sold during period Inventory Turnover: Meaning - answer-Too much can mean loss of sales, or not enough, Day's sales in uncollected - answer-How many days have passed before current Accounts Receivable is received in cash. Day's sales in uncollected: Meaning - answer-Less days means less time. Days sales in inventory - answer-How much is available in number of days once can sell. Days sales in inventory: Meaning - answer-Less is better. Total Asset Turnover - answer-Companies' ability to use its assets to guarantee sales. Total Asset Turnover: Meaning - answer-More means more sales for each dollar. Debt Ratio - answer-Risks reflected with debt. Debt Ratio: Meaning - answer-The more leverage the more relying on debt. Equity Ratio - answer-Amount of leverage used by a company Equity Ratio: Meaning - answer-More means less risk and efficiently funded. Debt to equity - answer-Shows proportion of a company financed by no owners. Debt to equity: Meaning - answer-More leverage is good. Times Interest Earned - answer-Reflects risks of covering interest. Times Interest Earned: Meaning - answer-Higher, the less risk Profit Margina Ratio - answer-Percent of profit in each dollar of sales. Profit Margina Ratio: Meaning - answer-Higher the better Gross Margin Ratio - answer-How much they have in sales in dollar. Gross Margin Ratio: Meaning - answer-Higher the better Return on total Asset - answer-How profible a company is given its assets. Return on total Asset: Meaning - answer-Higher better, more getting out of. Return on Common Stockholder - answer-Ability to earn income for common stockholders. Return on Common Stockholder: meaning - answer-Higher, better more income for common share. Basic Earnings Per Share - answer-What share of the pie they have in stocks and shares. Return on Common Stockholder: Meaning - answer-Higher means higher amount in the pie. Price Earnings Ratio - answer-The market expectations through the year and much they think they are going to grow. Price Earnings Ratio: Meaning - answer-The higher the better. Because the difference in growth and expected growth. Dividend yield - answer-The return on holding a particular stock and dividends. Dividend yield: meaning - answer-Higher, the more you're going to get out of it.