CFAI EOC question-FSA problem, change, assets, factor

badonkus

On Page 357, problem # 7...I was under the impression that for Inv w. Associates, you do not factor a sub's assets or sales, so why would asset turnover change when you exclude the sub?

what am i missing?

RepoToronto

im sure im just confused, but i was under the impression that for associates, you always exclude assets anyway, and you just report your investment as a one line item...so still not sure why you have to remove these assets...

thecfawannabe

The question may be referring to Quick Ratio with CA and CL. In which case CA will down and the investment will be long term asset/investment. That's the way ive seen it tested