Wall Street Prep Accounting Exam 2026 (complete solutions) (Complete And Verified Study material) (28pages) LEARNEXAMS

1. Liquidity Ratios: measures of a firm's short-term ability to meet its current

obligations

2. Profitability Ratios: measures of a firm's profitability relative to its assets (operating efficiency) and to its revenue (operating profitability)

3. Activity Ratios: Measure of efficiency of a firm's assets

4. Solvency Ratios: Measure of a firm's ability to pay its obligations

5. Inventory Turnover: COGS / avg inventory

6. Receivables Turnover: revenue / average accounts receivable

7. DSO (Days Sales Outstanding): AR/Credit Sales * days in period

days in period/receivables turnover

8. A/P turnover: COGS / Average A/P

9. PPP (payables purchasing period): days in period/ Accounts payable turnover