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FA

FA Chapter 26 Questions Interpretation of Financial Statements

 

13 Comments

  1. Henry
    Will there be a need to interpret these ratios or just calculation
  2. John MoffatTutor
    You are expected to understand the meaning of the ratios. However in Paper FA you cannot be asked to type out an interpretation. You can however be asked to select from a choice of possible interpretations.
  3. Tadesse
    In the exam we work it same, or just comment on ratio no numbers add?
  4. Thenuka
    Got A 100% in the First Go!

    Thank You very much!
    And A Happy New Year!
  5. Manuga
    100% thank you sir
  6. Ndaizivei
    I got 100%
    Thank you so much sir
  7. Morgan
    100% thanks
  8. Francisco
    Dear John, is it not the formula for quick ratio : (current assets - inventory)/ current liabilities? In Q4, inventory is added (instead of subtracted).
  9. John MoffatTutor
    Yes, that is the formula for the quick ratio. But question 4 does not ask for the quick ratio - it asks for the current ratio!!!
  10. tasalsafi
    no dear, check the formula again. 2232/1890= 1.18 option A is correct
  11. John MoffatTutor
    The answer to question 4 is NOT 1.18. The question asks for the current ratio (1.18 is the quick/acid-test ratio).
  12. taqi1
    Sir,
    How to calculate Receivable Turnover Ration from PL? I have faced a question some where else.
    thanks in advance.
  13. John MoffatTutor
    In future please ask this sort of question in the Ask the Tutor Forum, and not as a comment on a lecture.

    It is the sales from the Statement of Profit or Loss divided by the Receivables from the Statement of Financial Position.

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