Accounting Equations Flashcards
1
Q
Value of assets - Liabilities
A
Equity
2
Q
Earned revenue - Cost of sale
A
Net income
3
Q
Fixed cost / (Selling price - production costs)
A
Break-even point
4
Q
Liquid assets / Liabilities
A
Cash ratio
5
Q
Net income / Total sales generated
A
Net profit margin
6
Q
Liabilities / Equity
A
Debt-to-equity ratio
7
Q
Cost of making product - total cost of sales
A
COGS (Cost of Goods Sold)
8
Q
Net income - Cash dividends
A
Retained earnings
