Study sets matching "accounting equations"

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Study sets matching "accounting equations"

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
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
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
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…
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…
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
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
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
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
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
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
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
Current Ratio
Current cash debt coverage
Inventory Turnover
Days in inventory
Current Ratio
Current cash debt coverage
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
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
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
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
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
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
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
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
6 terms
Accounting equations
Net Sales
Net Purchases
Gross Profit
COM sold
Sales... -Sales Discount... -Sale R&A
Purchases... +Transportation In... -PurchaseDiscount... -Sales R&A
Net Sales... -COM sold
Beg. Merch. Inv... -net purchases... -end. Merch. Inv.
Net Sales
Sales... -Sales Discount... -Sale R&A
Net Purchases
Purchases... +Transportation In... -PurchaseDiscount... -Sales R&A
15 terms
Accounting Equations
current assets/current liabilities
net credit sales/average net accounts…
365 days/accounts receivable turnover
cost of goods sold/average inventory
current ratio
accounts receivable turnover
average collection period
inventory turnover
current assets/current liabilities
current ratio
net credit sales/average net accounts…
accounts receivable turnover
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
Accounting equations
Days in inventory
Price earnings ratio
Gross profit rate
Free cash flow
365/inventory turnover
Market price per share/earnings per share
Gross profit/net sales
Net operating activities - capital expeditures - cash dividends
Days in inventory
365/inventory turnover
Price earnings ratio
Market price per share/earnings per share
17 terms
Accounting Equations
Days in Inventory
Inventory Turnover
Price Earnings Ratio
Gross Profit Rate
=365 Days/Inventory Turnover
=COGS/Average Inventory
=market price per share/earnings per share
=Gross Profit/Net Sales
Days in Inventory
=365 Days/Inventory Turnover
Inventory Turnover
=COGS/Average Inventory
Financial Accounting Equations
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 Equations
Cash + Short Term Investments + Receiv…
Current Assets/Current Liabilities
Gross Margin/Sales
Net Income/Sales
Quick Ratio
Current Ratio
Gross Margin Ratio
Return on Sales Ratio
Cash + Short Term Investments + Receiv…
Quick Ratio
Current Assets/Current Liabilities
Current Ratio
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
17 terms
Accounting Equations
price earnings ratio
working capital
inventory turnover
days in inventory
market price per share/earnings per share
current assets-current liabilities
cost of goods sold/average inventory
365/inventory turnover
price earnings ratio
market price per share/earnings per share
working capital
current assets-current liabilities
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
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
accounting equations
straight line depreciation
return on asset ratio
times interest earned ration
current ratio
assets cost-residual/service life
net income/average total assets
net income+interest expense+tax expense/interest expense
current assets/current liabilities
straight line depreciation
assets cost-residual/service life
return on asset ratio
net income/average total assets
Accounting Equations
Assets =
Ending Stockholders' equity=
Change in stockholders' equity =
Change in stockholders' equity equatio…
Liabilities+ Stockholders' Equity
Beginning stockholders' equity + change in stockholders' equity
Insurance of stock + net income- dividends
Ending stockholders' equity - beginning stockholders' equity
Assets =
Liabilities+ Stockholders' Equity
Ending Stockholders' equity=
Beginning stockholders' equity + change in stockholders' equity
accounting equations
ROI
Margin Formula
Asset Turnover
ROE
Net Income/ ATA
Net Income/ Sales
Sales/ ATA
Net Income/ Avrg SE
ROI
Net Income/ ATA
Margin Formula
Net Income/ Sales
11 terms
Accounting Equations
Working Capital
Current Ratio
Quick Ratio
Accounts receivable turnover
Current Assets - Current Liabilities
Current Assets / Current Liabilities
Quick Assets / Current Liabilities
Net Sales / Average accounts receivable
Working Capital
Current Assets - Current Liabilities
Current Ratio
Current Assets / Current Liabilities
Accounting Equations
- ROA
- Gross Profit Margin
- Current Ratio
- Quick Ratio
net income/average total assets
Net Sales-Cost of Goods Sold/Net Sales
Current Assets/Current Liabilities
(Cash and Cash Equivalents+Short Term Investments+Current Rec…
- ROA
net income/average total assets
- Gross Profit Margin
Net Sales-Cost of Goods Sold/Net Sales
Accounting Equations
Per Bank
Per books
Asset Turnover
Return on Assets
deposit in transit, outstanding checks, bank errors
other deposits other payments book errors
sales rev/avg total asset
Net Income/ avg total asset
Per Bank
deposit in transit, outstanding checks, bank errors
Per books
other deposits other payments book errors
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
24 terms
Accounting equations
Retained earnings
Net income
Current ratio
Working capital
net income - dividends
revenues - expenses
current assets / current liabilities
current assets - current liabilities
Retained earnings
net income - dividends
Net income
revenues - expenses
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
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
15 terms
Accounting Equations
working capital
current ratio
quick ratio
debt ratio
=total current assets - total current liabilities
=current assets / current liabilities
=total quick assets / total current liabilities
=total liabilities / total assets
working capital
=total current assets - total current liabilities
current ratio
=current assets / current liabilities
Accounting Equations
Net income =
Net income also called
Retained earnings
Closing revenue accounts
Revenues - expenses
Net profit
Net income - dividends
Debit sales revenue, credit retained earnings
Net income =
Revenues - expenses
Net income also called
Net profit
30 terms
Accounting Equations
gross profit
net income ( income from operations)
net sales
profit margin
net sales -cost of goods sold
gross profit - operating expenses
sales revenue- (sales returns and allowances)
net income/ net sales
gross profit
net sales -cost of goods sold
net income ( income from operations)
gross profit - operating expenses
18 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
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