Section 1: 30–40%1F
Financial Statement Ratios and Performance Metrics
Ratios have the most questions in the Surgent FAR outline. AICPA tests whether you know the formula AND can interpret what a ratio tells you. Expect 6-10 ratio questions on the FAR exam.
What AICPA Wants You to Know
- 1Calculate and interpret liquidity ratios (current, quick, cash)
- 2Calculate and interpret solvency/leverage ratios (debt-to-equity, interest coverage)
- 3Calculate and interpret profitability ratios (ROA, ROE, profit margin, gross margin)
- 4Calculate and interpret efficiency/turnover ratios (AR, inventory, asset turnover)
- 5Understand what each ratio tells an analyst and what changes improve/worsen it