Accounting Equations Flashcards
1
Q
Net Income Equation
A
Net Income= Revenues - Expenses
2
Q
What does Owners Equity Include?
A
Capital Stock + Retained Earnings
3
Q
Basic Accounting Equation
A
Assets = Liabilities + Owners Equity
Business Resources = Amount from Creditors + Amount from Owners.
4
Q
Retained Earnings Equation
A
Net Income for the year - Dividends for the year
5
Q
Earnings Per Share (EPS)
A
EPS = Net Income / # of Shares
6
Q
Debt Ratio
A
Total Liabilities / Total Assets
7
Q
Gross Profit Percentage
A
[ Revenue - Cost of Good Sold] / Revenue
8
Q
Return on Sales
A
Net Income / Revenue
9
Q
Return on Equity
A
Net Income / Equity
10
Q
Gross Profit
A
Net Sales Revenues - Cost of Goods sold
