krause2

Ross.Pope Wrote:
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> I think what is needed to be learnt from ratio
> analysis is not only do you have to understand
> each ratio given, but also how each ratio
> interacts with each other. So, for example, if
> inventory increased, out of the quick ratio and
> current ratio which one would increase the most?
> or something that to effect.
>
> I believe CFAI want you to understand the dynamics
> between ratios as oppose to just being able to
> write the ratios in the exam.


exactly, know them and also be able to understand how different situations can affect them. Mock exams will help you get that