Reading 21 LOS Observation

None of the LOS statements use the keyword “Calculate”, mostly “explain and evaluate” or “Analyze and interepret”, yet most of the reading is calculation of ratios and PV of leases. What is the concensus opinion of the interpretation of the LOS and what the focus might be out of this reading?

Has anyone else make this observation?

My real question is that there clearly will not be an answer on the test that has to be calculated, meaning what is the value of X, but is the opinion that you will have to make a calculation to “evaluate and Analyze” to compare two ratios or do you think they will be given?

I’d say no calculations required, just impact of leases on ratios (higher or lower). focus on impact of choice on numerator and denominator of each ratio.

that was my conclusion as well