Includes formulas and ratios for financial accounting

This is a Free Service provided by Why Fund Inc. (a 501 C3 NonProfit) We thank you for your donation!


(1. Click on the course Study Set you wish to learn.) (2. If you wish you can click on "Print" and print the test page.) (3. When you want to take a test...click on anyone of the tests for that Study Set.) (4. Click on "Check Answers" and it will score your test and correct your answers.) (5. You can take all the tests as many times as you choose until you get an "A"!) (6. Automated college courses created from lecture notes, class exams, text books, reading materials from many colleges and universities.)

New

Long-Term Learning

Learn efficiently and remember over time.

Start Long-Term Learning

Get personalized study reminders at intervals optimized for better retention.
Track your progress on this set by creating a folder
Or add to an existing folder

Add this set to a folder

  • Basic Accounting Equation

    Assets = Liabilities + Stockholders' Equity

    Net Income

    Revenue - Expenses

    Stockholders' Equity

    Retained Earnings + Common Stock

    Retained Earnings

    Beginning Balance + Net Income - Dividends

    Net Realizable Value

    Accounts Receivable - Allowance for Doubtful Accounts

    Cost of Goods Sold

    Beginning Inventory
    +Cost of goods purchased during the period
    =Cost of goods available for sale
    -Ending Inventory
    =COGS

    Gross Profit

    Revenue - COGS

    Net Book Value

    Cost of an asset - Accumulated Depreciation

    Net Sales

    Revenue - (Allowances+Discounts+Returns)

    Current Ratio

    Current assets / Current liabilities

    Higher is better. Measures Liquidity.

    Debt-to-total-assets Ratio

    Total Liabilities / Total Assets

    Lower is better. Measures solvency.

    Return on Sales Ratio

    Net Income / Net Sales

    Higher is better. Measures profitability.

    Free Cash Flow

    Cash from operations - Capital Expenditures

    Inventory Turnover Ratio

    Cost of Goods Sold / Average Inventory

    Days' Sale Inventory

    365 / Inventory Turnover Ratio

    Average Inventory

    (Beginning Inventory + Ending Inventory) / 2

    Earnings per Share

    Net Income / # of outstanding shares

    Working Capital

    Current assets - Current liability

    Interest

    Principal X Interest Rate X Time

    Accounts Receivable Turnover

    Net Sales / Average Accounts Receivable

    Average Collection Period

    365 / Accounts Receivable Turnover

    Annual Straight-line Depreciation

    (Acquisition cost - salvage value) / Estimated useful life

    Return on Assets

    Net income / Average total assets

    Asset Turnover

    Net Sales / Average total assets

    Quick ratio

    (Cash + short-term investments + accounts receivable) / Current Liabilities

    Times Interest Ratio

    Income before expense / interest expense

    Please allow access to your computer’s microphone to use Voice Recording.

    Having trouble? Click here for help.

    We can’t access your microphone!

    Click the icon above to update your browser permissions above and try again

    Example:

    Reload the page to try again!

    Reload

    Press Cmd-0 to reset your zoom

    Press Ctrl-0 to reset your zoom

    It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

    Please upgrade Flash or install Chrome
    to use Voice Recording.

    For more help, see our troubleshooting page.

    Your microphone is muted

    For help fixing this issue, see this FAQ.

    Star this term

    You can study starred terms together

    ! Voice Recording

    This is a Plus feature