Browse Financial Accounting and Reporting (FAR)
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- 3.1 Comprehensive Review of the Balance Sheet (Statement of Financial Position)
- 3.2 Income Statement: Single-Step vs. Multi-Step Formats
- 3.3 Statement of Comprehensive Income (OCI Components and Presentation)
- 3.4 Statement of Changes in Equity (Share Capital, Retained Earnings, Other Equity Items)
- 3.5 Statement of Cash Flows (Operating, Investing, Financing; Indirect/Direct Methods)
- 3.6 Notes to the Financial Statements (Policies, Related Party Disclosures)
- 3.7 Illustrative Examples and Advanced Issues for For-Profit Entities
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- 4.1 Overview of Not-for-Profit Accounting and Governing Principles
- 4.2 Statement of Financial Position (Net Assets: With/Without Donor Restrictions)
- 4.3 Statement of Activities (Classification of Revenues, Expenses, Support)
- 4.4 Statement of Cash Flows (Direct vs. Indirect Methods)
- 4.5 Functional Expense Reporting (By Nature and Function)
- 4.6 Disclosures and Special Topics in Not-for-Profit Accounting
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- 5.1 Measurement Focus and Basis of Accounting (Current vs. Economic Resources)
- 5.2 Governmental, Proprietary, Fiduciary Funds (Types and Major vs. Nonmajor Funds)
- 5.3 Government-Wide vs. Fund-Level Statements and Required Reconciliations
- 5.4 Budgetary Accounting, Encumbrances, and Appropriations
- 5.5 MD&A Requirements, Required Supplementary Information (RSI)
- 5.6 Illustrative Examples (Basic Transactions and Sample Disclosures)
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- 6.1 SEC Regulatory Environment (Securities Exchange Act of 1934)
- 6.2 Interim Reporting and Required Disclosures
- 6.3 Annual Filings and Form 10-K/10-Q/8-K Requirements
- 6.4 Earnings per Share (Basic and Diluted Calculation)
- 6.5 Segment Reporting (Identifying Reportable Segments, Disclosure Requirements)
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- 26.1 Consolidated Financial Statements (Advanced Topics, Eliminations)
- 26.2 Business Combinations (Purchase Accounting, Goodwill, Noncontrolling Interests)
- 26.3 Foreign Currency Transactions, Translation, and Remeasurement (Overview)
- 26.4 Additional Advanced Topics: Pushdown Accounting Revisited, Quasi Reorganizations
- 26.5 Comprehensive Exercises Integrating Multiple FAR Topics
Chapter 8: Financial Statement Analysis, Ratios, and Performance Metrics
In this section
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Horizontal and Vertical Analysis Techniques
Explore the fundamentals of horizontal and vertical analysis, key comparative techniques for financial statement analysis essential to the FAR section of the CPA Exam.
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Profitability Ratios (Gross Margin, ROE, ROA, etc.)
Explore essential profitability ratios—from Gross Margin to Return on Equity and Return on Assets—understanding their formulas, interpretations, and real-world applications.
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Liquidity Ratios (Current, Quick, Receivables, Inventory Turnover)
Learn how to evaluate a company's short-term financial solvency using the major liquidity ratios, including the Current, Quick, Receivables Turnover, and Inventory Turnover, with real-world examples and best practices.
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Solvency Ratios (Debt to Equity, Times Interest Earned)
Learn how Debt to Equity and Times Interest Earned ratios measure a company's long-term solvency and financial stability. This in-depth analysis discusses capital structure impacts, interest coverage, and best practices for evaluating financial risk.
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Non-GAAP Measures and Non-Financial Indicators
Explore adjusted EBITDA, free cash flow, and intangible performance metrics, and learn how non-GAAP measures offer deeper insights into organizational performance while requiring critical analysis to avoid misinterpretation.
