Hi, what ratios should I be aware of for the AA exam?
Ask the Tutor ACCA AA
Ratios
The same as you would be expected to know in FA - assumed knowledge for AA is only that of Financial Accounting. So the profitability ratios (ROCE, GP%, OP%), the liquidity ratios (current and quick) and the efficiency ratios (inventory, receivables and payables), also gearing for long-term solvency and interest cover - the latter are both relevant where going concern may be in doubt.
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