Study sets matching "accounting equations acct"

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Study sets matching "accounting equations acct"

Financial Accounting Equations - Acct 2
Basic Accounting Equation
Net Income
Stockholders' Equity
Retained Earnings
Assets = Liabilities + Stockholders' Equity
Revenue - Expenses
Retained Earnings + Common Stock
Beginning Balance + Net Income - Dividends
Basic Accounting Equation
Assets = Liabilities + Stockholders' Equity
Net Income
Revenue - Expenses
39 terms
ACCT 229 Accounting Equation
Cash
Marketable Securities
Accounts Receivable
Supplies
Current Asset
Current Asset
Current Asset
Current Asset
Cash
Current Asset
Marketable Securities
Current Asset
11 terms
ACCT: Accounting Equation
Accounting Equation
Assets categories
A. LT Investments
A. PPE/Fixed Assets
A = L + SHE
Current Assets... Long Term Investment... PPE/Fixed Assers... Intangib…
...
Land ... Building ... Equpment... Furniture... *Accum. Depreciation
Accounting Equation
A = L + SHE
Assets categories
Current Assets... Long Term Investment... PPE/Fixed Assers... Intangib…
ACCT - accounting equation, debit and credits
Accounting
Accounting systems
Accounting records
Financial statements
The planning, recording, analyzing, and interpreting of finan…
The process for providing financial information that will be…
Organized summaries of a business's financial activities
Reports that summarize the financial condition and operations…
Accounting
The planning, recording, analyzing, and interpreting of finan…
Accounting systems
The process for providing financial information that will be…
Accounting Equations
Assets Liabilites Equity Equation
Total Equity Equation
Retained Earning Equation
Net Income Equation
Assets = Liabilities + Equity
Common Stock + Retained Earning
Beginning Retained Earning + Net Income -Dividends =
Revenues - Expenses
Assets Liabilites Equity Equation
Assets = Liabilities + Equity
Total Equity Equation
Common Stock + Retained Earning
ACCT 2300 Flash Cards 1 Accounting Equation and Balance Sheet
Accounting Equation
Balance Sheet
Asset
Liability
ALOE... Assets = Liabilities + Owners' Equity... Assets = Liabiliti…
CAIP IPI = ANA B CAR... Left (Debit) = Right (Credit)... Assets, De…
Future economic benefit; owned right to receive a future bene…
An obligation of the business. (Must be paid in the future.)
Accounting Equation
ALOE... Assets = Liabilities + Owners' Equity... Assets = Liabiliti…
Balance Sheet
CAIP IPI = ANA B CAR... Left (Debit) = Right (Credit)... Assets, De…
30 terms
Accounting Equations
Assets Liabilites Equity Equation
Total Equity Equation
Retained Earning Equation
Net Income Equation
Assets = Liabilities + Equity
Common Stock + Retained Earning
Beginning Retained Earning + Net Income -Dividends =
Revenues - Expenses
Assets Liabilites Equity Equation
Assets = Liabilities + Equity
Total Equity Equation
Common Stock + Retained Earning
acct equations
payout ratio (know equation, not how t…
return on common stockholders equity (…
units of activity and straight line
advantages of a corporation
cash dividends declared on common stock / net income
net income - preferred dividends / average common stockholder…
cost - salvage value / total amount of units
separate legal existence, limited liability of stockholders,…
payout ratio (know equation, not how t…
cash dividends declared on common stock / net income
return on common stockholders equity (…
net income - preferred dividends / average common stockholder…
7 terms
ACCT Equations
Earnings Per Share
Total Asset Turnover Ration
Net Income
Accounting Equation
(Net Income / Average Number of Current Shares Outstanding)
(Net Sales / Average Total Assets)
Revenues - Expenses + Gains - Losses
Assets = Liabilities + Stockholders Equity
Earnings Per Share
(Net Income / Average Number of Current Shares Outstanding)
Total Asset Turnover Ration
(Net Sales / Average Total Assets)
7 terms
ACCT Equations
Accounts Receivable Ratio
Debt to Assets Ratio
Current Ratio
Times Interest Earned
L- Net Sales Rev / Avg Net Receivables
S- total liabilities/total assets
L- current assets/current liabilities
S- (Net income + interest exp + income tax exp)/ interest exp
Accounts Receivable Ratio
L- Net Sales Rev / Avg Net Receivables
Debt to Assets Ratio
S- total liabilities/total assets
ACCT equations
Times interest earned ratio ... *the hig…
straight line depreciation
units of production depreciation
double declining balance depreciation
Income before interest & taxes/interest expense
(cost - salvage) / estimated useful life (years) = depreciati…
(cost - salvage) / total units of production = depreciation e…
beginning book value x double the straight line rate (%) = de…
Times interest earned ratio ... *the hig…
Income before interest & taxes/interest expense
straight line depreciation
(cost - salvage) / estimated useful life (years) = depreciati…
23 terms
ACCT Equations
COGM
COGS
Total Cost of a Job
POHR
Beg. WIP... +DM... +DL... +MOH Applied... -End WIP
Beg. Finished Goods... +COGM... -End Finished Goods
DM... +DL... +MOH (POHR X Hours)
Estimated Total Cost... /... Estimated Allocation Base
COGM
Beg. WIP... +DM... +DL... +MOH Applied... -End WIP
COGS
Beg. Finished Goods... +COGM... -End Finished Goods
7 terms
acct equations
ROA
Net profit margin
Total Asset Turnover
EPS
Net Income/ Avg Total Assets
Net Income/Net Sales
Net sales/avg total assets
Net income/ average shares outstanding
ROA
Net Income/ Avg Total Assets
Net profit margin
Net Income/Net Sales
20 terms
ACCT Equations
Revenue/Spending Variance
Activity Variance
Material Price Variance
Material Quantity Variance
Actual Budget - Flexible Budget
Planning Budget - Flexible Budget
(AQ x AP) - (AQ x SP)
(AQ x SP) - (SQ x SP)
Revenue/Spending Variance
Actual Budget - Flexible Budget
Activity Variance
Planning Budget - Flexible Budget
10 terms
Acct Equations
Contibution Margin
CM Ratio
Profit
$ Sales to break even
Sales-VE
CM/Sales
Cm Ratio x Sales - FE
FE/CM Ratio
Contibution Margin
Sales-VE
CM Ratio
CM/Sales
16 terms
Acct Equations
Direct Materials Cost Variance
Direct Materials Efficiency Variance
Direct Labor Cost Variance
Direct Labor Efficiency Variance
(Actual cost - Standard cost) * Actual quantity
(Actual quantity - standard quantity) * Standard Cost
(actual cost - standard cost) * actual quantity
(actual quantity - standard quantity) * standard cost
Direct Materials Cost Variance
(Actual cost - Standard cost) * Actual quantity
Direct Materials Efficiency Variance
(Actual quantity - standard quantity) * Standard Cost
11 terms
Acct. Equations
Fixed Asset Turnover
Average # of days to sell Inventory
Inventory Turnover
Average Collection Period
Net sales / Average Fixed Assets
365 / Inventory Turnover
Cost of Goods Sold (CGS) / Average Inventory
365 / Receivables Turnover
Fixed Asset Turnover
Net sales / Average Fixed Assets
Average # of days to sell Inventory
365 / Inventory Turnover
Accounting Equations
Assets Liabilites Equity Equation
Total Equity Equation
Retained Earning Equation
Net Income Equation
Assets = Liabilities + Equity
Common Stock + Retained Earning
Beginning Retained Earning + Net Income -Dividends =
Revenues - Expenses
Assets Liabilites Equity Equation
Assets = Liabilities + Equity
Total Equity Equation
Common Stock + Retained Earning
11 terms
The Accounting Equation
Accounting
Accounting System
Accounting Records
Service business
Planning, recording, analyzing, and interpreting financial in…
A planned process for providing financial information that wi…
Organized summaries of a business's financial activities
A business that performs an activity for a fee
Accounting
Planning, recording, analyzing, and interpreting financial in…
Accounting System
A planned process for providing financial information that wi…
23 terms
Accounting Equations
Gross Profit
Net Income
Accounts Receivable Turnover Ratio
Inventory Turnover Ratio
Net Sales - COGS
Gross Profit - operating expenses - taxes
Net sales / average accounts receivable
COGS / Average inventory ... or ... Sales / Average inventory
Gross Profit
Net Sales - COGS
Net Income
Gross Profit - operating expenses - taxes
63 terms
Acct. Equations
Income statement-gross profit
Income statement-total op expenses
Income statement-earnings before inter…
Income statement-interest expense
net sales-cost of goods sold
research and development, sales & marketing, general and admi…
gross profit-total operating expenses
given
Income statement-gross profit
net sales-cost of goods sold
Income statement-total op expenses
research and development, sales & marketing, general and admi…
21 terms
accounting equations
allocation of net income based on stat…
allocation of net income based on capi…
Chapter 13--Corporations
preferred dividends =
net income x stated ratio
net income x (capital balance/total capital)
...
outstanding shares x par value x preferred dividend rate
allocation of net income based on stat…
net income x stated ratio
allocation of net income based on capi…
net income x (capital balance/total capital)
37 terms
Accounting Equations
COGAS (cost of goods available for sale)
Average Unit Cost
Net Sales
Ending inventory
(Beginning inventory) + (net purchases) + (shipping)
(total cost of all goods added up) / (Total # of units for sa…
(Gross sales) - (Sales returns and allowances)
(Beginning inventory) + (Net purchases) + (shipping) - (COGS)
COGAS (cost of goods available for sale)
(Beginning inventory) + (net purchases) + (shipping)
Average Unit Cost
(total cost of all goods added up) / (Total # of units for sa…
8 terms
Accounting Equations
Net Sales
Cost of Delivered Merchandise
Net Purchases
Cost of Merchandise Available
Sales Discounts - Sales Returns & Allowances
Purchases + Transportation In
Cost of Delivered Merchandise - Purchase Discounts - Purchase…
Inventory Beg. + Net Purchases
Net Sales
Sales Discounts - Sales Returns & Allowances
Cost of Delivered Merchandise
Purchases + Transportation In
22 terms
Acct: Ch. 1 - Starting a Proprietorship: Changes That Affect the Accounting Equation
Accounting
accounting system
accounting records
financial statements
planning, recording, analyzing, and interpreting financial in…
a planned process for providing financial information that wi…
organized summaries of a business's financial activities
financial reports that summarize the financial condition and…
Accounting
planning, recording, analyzing, and interpreting financial in…
accounting system
a planned process for providing financial information that wi…
Accounting Equations
Current Ratio
Current cash debt coverage
Inventory Turnover
Days in inventory
Current Ratio
Current cash debt coverage
Accounting Equations
Assets
Accounting Proft
Income Statement
Balance Sheet
=Liabilities+Equity (capital)
=Revenues+Cost incurred
=Revenues-Expenses
=What we own= What we owe
Assets
=Liabilities+Equity (capital)
Accounting Proft
=Revenues+Cost incurred
accounting equations
variable cost per unit
fixed xosts
express variable and fixed cost in Y =…
calculate break even units
change in costs / change in days
high cost - (VCU x high days)
fixed costs + VC(high days)
difference in costs x fixed costs
variable cost per unit
change in costs / change in days
fixed xosts
high cost - (VCU x high days)
Accounting equations
Contribution Margin
Contribution Margin per Unit
Contribution Margin Ratio
Operating Leverage
Sales Revenue - Total Variable Cost
Price - Variable cost per unit
Contribution Margin / Sales Revenue
CM/Net Income
Contribution Margin
Sales Revenue - Total Variable Cost
Contribution Margin per Unit
Price - Variable cost per unit
111 terms
ACCT 3110: Intermediate Accounting
Accounting Principles Board (APB)
Accounting Research Bulletins
Accounting Standards Updates
Accrual-Basis Accounting
Private standard-setting organization from 1959 to 1973, whos…
Fifty-one bulletins from the Committee on Accounting Procedur…
The products of standard-setting (e.g., FASB standards, staff…
Accounting approach, in which a company records events that c…
Accounting Principles Board (APB)
Private standard-setting organization from 1959 to 1973, whos…
Accounting Research Bulletins
Fifty-one bulletins from the Committee on Accounting Procedur…
Accounting Equations
Inventory Turnover Ratio
Gross Profit Percentage
Current Ratio
LIFO Tax Saving for one year
COGS/Avg. Inventory
Gross Profit/ Total Sales Revenue
Current Assets/ Current Liabilities
(Increase in LIFO reserve)(Tax Rate)
Inventory Turnover Ratio
COGS/Avg. Inventory
Gross Profit Percentage
Gross Profit/ Total Sales Revenue
Accounting equations
Period cost
Prime cost
Conversion cost
Fixed cost element
Selling expenses + Admin expenses
Direct material cost + Direct labor cost
Direct labor cost + Manufacturing overhead cost
Total cost - Variable cost element
Period cost
Selling expenses + Admin expenses
Prime cost
Direct material cost + Direct labor cost
Accounting equations
Debt Ratio
Current Ratio
Net Sales Revenue
Gross Profit Percentage
Total Liabilities / Total Assets
Total Current Assets / Total Current Liabilities
Sales Revenue - Sales Returns and Allowances - Sales Discounts
Gross Profit / Net Sales Revenue
Debt Ratio
Total Liabilities / Total Assets
Current Ratio
Total Current Assets / Total Current Liabilities
Accounting Equations
Assets
Net Income
Assets
Equity
Liabilities + Equity
Revenue - Expenses
Liabilities + (Capital Stock + Retained Earnings)
Capital Stock + Retained Earnings
Assets
Liabilities + Equity
Net Income
Revenue - Expenses
Accounting Equations
ROI
ROA
Debt Ratio
Assets Turnover
Net Profit / Average Owners Equity ... x 100
Net Profit / Average Total Assets... x 100
Total Liabilities / Total Assets... x 100
Sales / Average Total Assets
ROI
Net Profit / Average Owners Equity ... x 100
ROA
Net Profit / Average Total Assets... x 100
16 terms
Accounting Equations
Assets=
Net Income=
Retained Earnings=
Current Ratio=
Liabilities + Owner's equity
Revenues - Expenses
Revenues + Gains - Expenses - Losses
Current Assets / Current Liabilities
Assets=
Liabilities + Owner's equity
Net Income=
Revenues - Expenses
42 terms
Accounting Equations
Percentage of Sales Approach
percentage of receivables approach
recievables turnover ratio
days in receivables ratio
bad debt expense= sales x percentage
recievables x percentage+/- allowance for bad debts
credit sales/ average receivables
365/ recievables turnover ratio
Percentage of Sales Approach
bad debt expense= sales x percentage
percentage of receivables approach
recievables x percentage+/- allowance for bad debts
Accounting Equations
Accounting Equation
Current Ratio
Net Profit Margin
Debt-to-Assets Ratio
Assets = Liabilities + Stockholder's Equity
Current Assets/ Current Liabilities
Net Income/ Total Revenue
Total Liabilities/ Total Assets
Accounting Equation
Assets = Liabilities + Stockholder's Equity
Current Ratio
Current Assets/ Current Liabilities
32 terms
Accounting Equations
Cost of goods sold
Gross profit
Net income
Net sales
(Beg. Inventory)+purchases- (end inventory)
Sales revenue -COGS
Gross profit- operating expenses
Sales- sales returns- sales discounts
Cost of goods sold
(Beg. Inventory)+purchases- (end inventory)
Gross profit
Sales revenue -COGS
Accounting Equations
Gross Profit
Net Income... (Income from Operations)
Cost of Goods Available for Sale
Cost of Goods Sold (Periodic Inventory)
Sales Revenue-Cost of Goods Sold
Gross Profit-Operating Expenses
Beginning Inventory+Cost of Goods Purchased
(Beginning Inventory+Purchases)-Ending Inventory
Gross Profit
Sales Revenue-Cost of Goods Sold
Net Income... (Income from Operations)
Gross Profit-Operating Expenses
20 terms
Accounting Equations
Accounting Equation
Return on Assets (ROA)
Debt Ratio
Straight-Line Depreciation
Assets = Liabilities + Equity
Net Income / Average Total Assets
Total Liabilities / Total Assets
(Cost-Residual Value) / Useful Life
Accounting Equation
Assets = Liabilities + Equity
Return on Assets (ROA)
Net Income / Average Total Assets
Accounting Equations
Unit Contribution Margin
contribution margin ratio
break even points in units
break even points in dollars
Unit selling price-unit variable costs
unit contribution margin/unit selling price
fixed costs/unit contribution margin
fixed costs/contribution margin ratio
Unit Contribution Margin
Unit selling price-unit variable costs
contribution margin ratio
unit contribution margin/unit selling price
18 terms
Accounting Equation
asset
liabilities
owner's equity
accounting equation
Anything of value that is owned or controlled by an individua…
The debts of a business
The owner's investment in the business
Assets = Liabilities + Owner's Equity
asset
Anything of value that is owned or controlled by an individua…
liabilities
The debts of a business
21 terms
Accounting Equations
Net Profit Margin
current ratio
gross profit
gross profit percentage
net income / net sales (or operating revenues)
current assets / current liabilities
net sales - cost of sales
gross profit / net sales
Net Profit Margin
net income / net sales (or operating revenues)
current ratio
current assets / current liabilities
12 terms
Accounting Equation
What is the basic Accounting Equation?
Assets
Liabilities
Equity
Assets = Liabilities + Equity
Resources a company owns or controls. The term "receivable" i…
creditors' claims on assets. The term payable refers to a lia…
The owner's claim on assets.... Equity = Assets - Liabilities... Ma…
What is the basic Accounting Equation?
Assets = Liabilities + Equity
Assets
Resources a company owns or controls. The term "receivable" i…
Accounting Equations
Receivables Turnover Ratio
Average Collection Period
Inventory Turnover Ratio
Average Days in Inventory
Net Credit Sales / Average Accounts Receivable
365 / Receivables Turnover Ratio
Cost of Goods Sold / Average Inventory
365 Days / Inventory Turnover Ratio
Receivables Turnover Ratio
Net Credit Sales / Average Accounts Receivable
Average Collection Period
365 / Receivables Turnover Ratio
Accounting Equations
Accounting Equation
Owners Equity
Stockholder equity
retained earnings
Assets=Liabilities+Owners Equity
Asset-liability=owners equity
retained earnings* common stock
beginning retained earnings*Net income-Dividends
Accounting Equation
Assets=Liabilities+Owners Equity
Owners Equity
Asset-liability=owners equity
27 terms
Accounting equations
Inventoriable products... Cost of goods a…
Inventoriable Products... Cost of goods s…
Total manufacturing costs
Prime Costs
beginning inventory + purchases + freight-in + import duties
cost of goods available for sale - ending inventory
DM + DL + MOH
DM + DL
Inventoriable products... Cost of goods a…
beginning inventory + purchases + freight-in + import duties
Inventoriable Products... Cost of goods s…
cost of goods available for sale - ending inventory
13 terms
Accounting equations
Receivables Turnover Ratio
Average Collection Period
Inventory Turnover Ratio
Gross profit Ratio
Net Credit Sales/ ... Average accounts receivable
365 days/ ... receivables turnover ratio
Cost of goods sold/... average inventory
gross profit/ ... net sales
Receivables Turnover Ratio
Net Credit Sales/ ... Average accounts receivable
Average Collection Period
365 days/ ... receivables turnover ratio
23 terms
accounting equations
cash+marketable security+accounts rece…
cost of sales/average inventory=
beginning inventory+ending inventory/2=
total sales/total property and equipme…
quick ratio
inventory turn over
average inventory
property and equipment turnover
cash+marketable security+accounts rece…
quick ratio
cost of sales/average inventory=
inventory turn over
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