Financial Accounting (ACCT 102) Accounting Ratios Study Guide: Liquidity, Solvency, and Profitability
University of Florida
Financial Accounting (ACCT 102) | Study Guide

Overview
An ACCT 102 ratio reference for finals: the most tested liquidity, solvency, and profitability ratios, how to compute each, and what the results imply for performance analysis questions.

Key topics
•current and quick ratios
•inventory turnover and days sales in inventory
•receivables turnover and DSO
•debt ratio and times interest earned
•profit margin, asset turnover, and ROA/ROE basics

Suggested study tasks
•compute 15 ratios from short financial statement snippets
•match 12 ratio outcomes to business scenarios
•do 8 trend-analysis prompts (year-over-year)
•practice 6 common multiple-choice ratio traps
•build a one-page formula sheet from memory then compare

Common pitfalls
•mixing numerator/denominator definitions
•forgetting to use average balances for turnovers
•using end-of-year values inconsistently
•confusing ROA vs ROE
•over-interpreting a single ratio without context