[jes7879]

Hi- Does anyone have any pointers to remember the ratios in the AUD exam? I can remember the simple ones like current ratio but there are a lot and I’m having a hard time remembering them. The NINIJA notes only covered four ratios – current, quick, turnover and gross margin – my review course had has other – inventory turnover, etc. Any pointers?

Thanks!

AUD - passed
BEC - retake in July

[Jennifer241]

Write them all down on 1 piece of paper and tape it to your wall, look at it everyday! I did that (visual learner) and it worked great! Also, you will need to know these same ratio's for the BEC and FAR exam, so it's good to commit them to memory 🙂

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[jes7879]

Thanks! I'll do that. I'm very visual too!

AUD - passed
BEC - retake in July

[Anonymous]

Sometimes the formulas are given in the information tab, like you see it in the Becker Sims.

[peetree]

Ahh it is cessna. Good to know but you should take that down.

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[Anonymous]

I just posted some pointers in the AUD study group. Take a look.

[jes7879]

Thank you! That was helpful!

AUD - passed
BEC - retake in July

[P or F.. I think Im gonna BARF]

Simple answer – you don't memorize ALL of them… memorize the key ratios, and you should be fine. What's the worse that happens – you get 1 MCQ wrong?? Even if you get hit with it on a SIM, you can look it up in the auth literature.

Cost vs. Benefit rules apply not just to the practice of auditing, but also to the preparing for the audit CPA exam. If you can use your time more wisely, i.e. to study report variations like differences between comps, reviews, and audits… you should do as such.

B - (08/29/2013) Passed
A - (07/02/2013) Passed
R - (10/17/2013) 73 - Rematch
F - (05/29/2013) Passed

[Zach Zach]

If you're a visual learner, write them down on a note card (maybe more than one) and go through them on the card, first trying to recall the ratio and then checking yourself to see if you are right. Imo, just do that over and over (and over lol) until you get all ratios without looking on the back of the note card for help. For me, it took a little while to memorize everything but I was forced to memorize for undergrad audit class just a few months ago so everything is still stuck in my brain!

You've got this!

DELAWARE

AUD: 74 (7/2014) 76 (11/2014) PASSED! USED YAEGER AND NINJA
BEC: 73 (9/2014) 76 (2/2014) SO FAR SO GOOD! USED NINJA AND WILEY
FAR: Will take after tax season (can't wait)
REG: Cue overly dramatic impending-doom music (will take in 2014)

[samdiegoCPA]

One thing I always remembered was… to remember “Inventory Turnover”… you turn over Inventory, so it's on the bottom. Anything “turnover” is on the bottom. It was a little easier to then get the top part.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[jes7879]

Hi – Someone on this post said I can look up the ratios in the authoritative literature. I tried that but can't find them. Does anyone know if they are in the literature? Thanks!

Taking Auditing on Tuesday!

AUD - passed
BEC - retake in July

[Whopper Warrior]

I second samdiego. Also think of what your asking, and what a journal entry looks like on the accounts

A/R

Sales

COGS

Inventory

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Anonymous]

Yes, ratios are just too many to remember. At this point I've trimmed the most basic 16 ratios and I'm glad to have committed them to memory.

The 3 liquidity ratios are the hardest ones to forget.

The numerator for the 4 turnover ratios is net sales except for the inventory turnover, which has COGS. If I'm asked for TOTAL ASSET turnover, by all means the denominator should be AVERAGE TOTAL ASSETS. It goes by the name of whatever turnover ratio is being asked of. [Working Capital Turnover=Sales/Average Working Capital….]

For the 2 turnover in days, just use 365 days as your numerator.

The 3 profitability ratios have Net Sales as the denominator on them and the numerator should be whatever the ratio name goes by it. [Net Operating Margin Percentage=Net Operating Income/Net Sales].

The rest of the 4 ratios I've not mentioned yet, that I've memorized them by heart so I would not forget them even if I trip on my way to the testing center:

-Operating Cycle

-Return on Total Assets

-Debt/Equity

-Debt Ratio

[jes7879]

thank you!

AUD - passed
BEC - retake in July

[nzwoof]

these same ratios are tested on audit, bec and far.

Reg 4/06/13 81
Far 5/28/13 86

[SeattleAccountant]

Yes, same ratios for BEC, FAR & AUD. Learn them once and good for three tests.

One tip for any Turnover Ratio. Whatever is being “turned” over is in denominator.

Example: Inventory Turnover = COGS/Av. Inventory

Example: A/R Turnover = Credit Sales/Av. A/R

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Author]

Replies