# Study sets matching "accounting equations acct"

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

Accounting Equation

Assets categories

A. LT Investments

A. PPE/Fixed Assets

A = L + SHE

Current Assets... Long Term Investment... PPE/Fixed Assers... Intangibl…

...

Land ... Building ... Equpment... Furniture... *Accum. Depreciation

Accounting Equation

A = L + SHE

Assets categories

Current Assets... Long Term Investment... PPE/Fixed Assers... Intangibl…

Accounting

Accounting systems

Accounting records

Financial statements

The planning, recording, analyzing, and interpreting of financ…

The process for providing financial information that will be u…

Organized summaries of a business's financial activities

Reports that summarize the financial condition and operations…

Accounting

The planning, recording, analyzing, and interpreting of financ…

Accounting systems

The process for providing financial information that will be u…

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

Accounting Equation

Balance Sheet

Asset

Liability

ALOE... Assets = Liabilities + Owners' Equity... Assets = Liabilitie…

CAIP IPI = ANA B CAR... Left (Debit) = Right (Credit)... Assets, Deb…

Future economic benefit; owned right to receive a future benef…

An obligation of the business. (Must be paid in the future.)

Accounting Equation

ALOE... Assets = Liabilities + Owners' Equity... Assets = Liabilitie…

Balance Sheet

CAIP IPI = ANA B CAR... Left (Debit) = Right (Credit)... Assets, Deb…

Inventory turnover Equation

Days in Inventory Equation

Calculating COGS Equation

Receivables Turnover Equation

COGS/Average inventory

365 Days/ Inventory turnover

Beginning Inventory + COGS purchase = COGS available for Sale…

Net Credit Sales/ Average Gross Receivables

Inventory turnover Equation

COGS/Average inventory

Days in Inventory Equation

365 Days/ Inventory turnover

payout ratio (know equation, not how to…

return on common stockholders equity (k…

units of activity and straight line

advantages of a corporation

cash dividends declared on common stock / net income

net income - preferred dividends / average common stockholders…

cost - salvage value / total amount of units

separate legal existence, limited liability of stockholders, t…

payout ratio (know equation, not how to…

cash dividends declared on common stock / net income

return on common stockholders equity (k…

net income - preferred dividends / average common stockholders…

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

Interest

fica taxes

sales tax

acid test ratio

Face value x Annual Interest Rate x Fraction of the Year

social security + Medicare taxes

Total Cash Paid - Total Cash Paid/1+ Sales Tax Rate

Cash + Current Investments + Accounts Receivable/ Current Liab…

Interest

Face value x Annual Interest Rate x Fraction of the Year

fica taxes

social security + Medicare taxes

Gross Sales Revenue... - Sales Discounts... -…

Purchases... + Transportation IN... - Purchas…

Beginning Merchandise Inventory (Jan 1)…

Goods Available for Sale... - Ending Merch…

Net Sales Revenue

Net Purchases

Goods Available for Sale

Cost of Goods Sold

Gross Sales Revenue... - Sales Discounts... -…

Net Sales Revenue

Purchases... + Transportation IN... - Purchas…

Net Purchases

Current ratio

Net Profit Margin

Total Asset Turnover

Tax rate

Current Assets / Current Liabilities

Net Income / Net Sales

Net Sales / Average Total Assets

Income Tax Expense / (Net Income + Income Tax Expense)

Current ratio

Current Assets / Current Liabilities

Net Profit Margin

Net Income / Net Sales

Horizontal Analysis

common size statement vertical analysis

working capital

current ratio

( current year amount - base (previous) year amount)/ base yea…

account balance/ total assets (net sales)

total current assets - total current liabilities

total current assets/ total current liabilities

Horizontal Analysis

( current year amount - base (previous) year amount)/ base yea…

common size statement vertical analysis

account balance/ total assets (net sales)

Times interest earned ratio ... *the high…

straight line depreciation

units of production depreciation

double declining balance depreciation

Income before interest & taxes/interest expense

(cost - salvage) / estimated useful life (years) = depreciatio…

(cost - salvage) / total units of production = depreciation ex…

beginning book value x double the straight line rate (%) = dep…

Times interest earned ratio ... *the high…

Income before interest & taxes/interest expense

straight line depreciation

(cost - salvage) / estimated useful life (years) = depreciatio…

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

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)

Income statement-gross profit

Income statement-total op expenses

Income statement-earnings before intere…

Income statement-interest expense

net sales-cost of goods sold

research and development, sales & marketing, general and admin…

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 admin…

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

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

Accounting System

Accounting Records

Service business

Planning, recording, analyzing, and interpreting financial inf…

A planned process for providing financial information that wil…

Organized summaries of a business's financial activities

A business that performs an activity for a fee

Accounting

Planning, recording, analyzing, and interpreting financial inf…

Accounting System

A planned process for providing financial information that wil…

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

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