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Study sets matching "accounting equations acct"

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Study sets matching "accounting equations acct"

22 terms
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
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…
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
25 terms
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…
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
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
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
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
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
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…
15 terms
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…
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…
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
20 terms
ACCT Equations
Product Cost =
Period Cost =
Conversion Cost =
Prime Cost =
DM + DL + MOH
Selling Expenses + Admin Expenses
DL + MOH
DM + DL
Product Cost =
DM + DL + MOH
Period Cost =
Selling Expenses + Admin Expenses
16 terms
Acct_Equations
Account receivable turnover
inventory turnover
Net accounts receivable ... average inven…
net realizable value
sales on account/average net accounts receivable
cost of goods sold/ average inventory
beg + end/ 2
accounts receivable - allowance for doubtful accounts
Account receivable turnover
sales on account/average net accounts receivable
inventory turnover
cost of goods sold/ average inventory
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
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
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…
9 terms
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
9 terms
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)
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)
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…
8 terms
Accounting Equations
net realizable value of accounts recei…
Earnings Per Share (EPS)
Dividend Yield
Price - Earnings Ratio
Accounts Receivable - Allowance for Doubtful Accounts
(net income - preferred stock dividends) / outstanding common…
Dividends per share of common stock / market price of common…
Market price of common stock / EPS of common stock
net realizable value of accounts recei…
Accounts Receivable - Allowance for Doubtful Accounts
Earnings Per Share (EPS)
(net income - preferred stock dividends) / outstanding common…
14 terms
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
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
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
13 terms
Accounting Equations
Balance Sheet
Income Statement
Statement of Retained Earnings
Statement of Cash Flows
Assets = Liabilities + Stockholders' Equity
Revenues - Expenses ... = Net Income
Retained Earnings (beginning) + Net Income - Dividends... = Ret…
+/- Cash Flows from Operating Activities... +/- Cash Flows from…
Balance Sheet
Assets = Liabilities + Stockholders' Equity
Income Statement
Revenues - Expenses ... = Net Income
19 terms
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
19 terms
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
8 terms
Accounting Equations
Assets
Current Ratio
Working Capital
Net Income
=Liabilities+Stockholders Equity
= current assets/current liabilities
=current assets-current liabilites
=Total Revenue-Total Expenses
Assets
=Liabilities+Stockholders Equity
Current Ratio
= current assets/current liabilities
10 terms
Accounting equations
income statement
statement of stockholders equity
balance sheet
cash flow
revenues - expenses = net income
beginning equity + owner contributions + net income - dividen…
Liabilities + Equity = Assets
cash inflow - cash outflow = net cash flow
income statement
revenues - expenses = net income
statement of stockholders equity
beginning equity + owner contributions + net income - dividen…
20 terms
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
25 terms
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
9 terms
Accounting Equations
gross profit
operating expenses
net income
straight line depreciation
sales- cost of goods sold
day to day expenses: rent, advertising, insurance, salaries.…
all revenues- all expenses... also means: gross profit- operatin…
[original (historic) cost - salvage (residual) value]/useful…
gross profit
sales- cost of goods sold
operating expenses
day to day expenses: rent, advertising, insurance, salaries.…
23 terms
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
11 terms
Accounting equations
Gross profit margin
Gross profit mark-up
Net profit margin
Overheads in relation to revenue
Gross profit x100... Revenue (sales)
Gross profit x100... Cost of sales
Profit for the year before tax x100... Revenue
Overheads (expenses) x100... Revenue ( sales )
Gross profit margin
Gross profit x100... Revenue (sales)
Gross profit mark-up
Gross profit x100... Cost of sales
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
11 terms
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
Asset Turnover
Cash Return on Assets
Cash Flow to Sales
Return on Equity
Sales/ Average Total Assets
Operating/ Average Total Assets
Operating Cash Flows/ Net Sales
Net Income/ Average Stockholders Equity
Asset Turnover
Sales/ Average Total Assets
Cash Return on Assets
Operating/ Average Total Assets
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
17 terms
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
15 terms
Accounting Equations
ROI (return on investment)
sales margin
capital turnover
RI
operating income/ total assets
operating income/ sales
sales/ total assets
operating income - (target rate of return X total assets)
ROI (return on investment)
operating income/ total assets
sales margin
operating income/ sales
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
10 terms
The Accounting Equation
Assets
Liabilities
Owners Equity
The Balance Sheet...
A resource controlled by the entity, as a result of past even…
A present obligation of the entity, as a result of past event…
The residual interest in the assets of the entity after the l…
...shows the entity's financial position by showing assets, l…
Assets
A resource controlled by the entity, as a result of past even…
Liabilities
A present obligation of the entity, as a result of past event…
16 terms
Accounting Equations
Current Ratio
Dividend Payout Ratio
Return on Sales
Debt to Equity
Current assets/Current liabilities
Dividends/Net income
Net income/Sales Revenue
Interest Bearing Debt/Common SE
Current Ratio
Current assets/Current liabilities
Dividend Payout Ratio
Dividends/Net income
10 terms
Accounting Equations
Cost of Goods Available
Cost of Goods Sold
Operating Income
Gross Profit
Beg Inv + purchases
Cost of Goods Available - Ending Inventory
Gross Profit - operating expenses - depreciation
sales revenue - cost of goods sold
Cost of Goods Available
Beg Inv + purchases
Cost of Goods Sold
Cost of Goods Available - Ending Inventory
22 terms
Accounting Equations
Cash Paid to Suppliers
COGAS
Cogs
Total Manufacturing Cost
COGS + Change in inventory - Change in AP
Beg. Inventory + Purchases + freight-in + import duties
COGAS - End Inventory
DM + DL + MOH
Cash Paid to Suppliers
COGS + Change in inventory - Change in AP
COGAS
Beg. Inventory + Purchases + freight-in + import duties
16 terms
Accounting Equations
Gross Profit
Operating Margin
Profit Margin
Current Ratio
x cents of every dollar in sales are left to cover operating…
earned a operating profit of x cents on every dollar of sales
earned a profit of x cents on every dollar or sale
x dollars of current assets on balance sheet that might be us…
Gross Profit
x cents of every dollar in sales are left to cover operating…
Operating Margin
earned a operating profit of x cents on every dollar of sales
11 terms
Accounting Equations
Contribution Margin
Breakeven
Market capitalisation
Fixed costs
Selling price- variable costs
Fixed costs/ contribution margin
No. Of shares X value of each share
total costs- variable costs (X)
Contribution Margin
Selling price- variable costs
Breakeven
Fixed costs/ contribution margin
31 terms
Accounting equations
Current ratio
Debt ratio
Quick acid test ratio
Day sales in receivables
Total current assets / Total current liabilities
Total liabilities / Total assets
(cash and cash equivalents+ short term investments+ net curre…
Average net receivables/ average daily sales
Current ratio
Total current assets / Total current liabilities
Debt ratio
Total liabilities / Total assets
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