Accounting 1 Exam Flashcards
Current ratio
Current Assets / Current Liabilities
Working Capitol
Current assets - current liabilities
Debt to equity
Total Libalities / Total Stockholders Equity
Profit margin %
Net Income / Net Sales
Return on assets %
Net Income / Total Assets
Return on equity %
Net Income / Total Stockholders Equity
Multistep Income statement
Nets sales (Sales-Returns) - COGS ———— Gross Margin -operating expenses —————— Income from operations +/- other Revenues & Expenses ——————– Income before income tax - Income tax ————- Net income
COGS
Beginning inventory - net cost of purchases + freight in —————– Goods aviable for sale -ending eventory —————- COGS
Sales increased with
Credit
Sales returns and discounts increased with
Debit
Purchases increased with
Debit
Assets are increased with
Debit
Dividends are increased with a
Debit
