Accounting formulas

Question 1

How do calculate the receivables collection period?

Answer 1

365 x ((beginning + ending receivables)/2 )) / net sales total

Question 2

What is the ending account receivable formula ?

Answer 2

Beginning AR + Sales - Custommer accounts- Cash collected from customers= Ending balance

Question 3

What is the formula for COGs

Answer 3

It’s (beginning Inventory+Purchases)-Ending inventory

Question 4

Avarage cost of ending inventory

Answer 4

Units left x ( all cost combined/all units combined) = average cost of ending inventory

Question 5

How do you calculate gross profit percentage ?

Answer 5

((Total Revenue - COGS)/TR )x100

Question 6

How do you calculate inventory turnover

Answer 6

1Average Inventory = Beg Inv+ End Inventory

2 COGS/ Inventory = Inventory turnover

Question 7

How do you calculate Gross profit percentage

Answer 7

Gross pp = Gross profit/Sales

Question 8

How do you calculate gross profit

Answer 8

Sales - COGs

Question 9

Average cost per Unit

Answer 9

= Cog avalaible / Number of units available

Question 10

Sales =

Answer 10

Number of units sold x Selling price

Question 11

Straight line method?

Answer 11

cost - Residual value = debriciable cost

Depriciable / Useful life = Annual depreciation

Question 12

Units of activity method

Answer 12

1 Debriciable cost/ Total units = derp cost per unit

2 Depr cost per unit xUnits of activity = annual depreciable expense

Question 13

Double declining method

Answer 13

Book value x decking balance Rate

Question 14

Appraised value

Answer 14

Searched appraised value / ( all equipment added) x equipment

Question 15

Carrying value =

Answer 15

Cost - 2xdepreciation expense per year

Question 16

Total paid in capital =

Answer 16

Ordinary shares +preference shares +paid in capital in excess of

Question 17

Sy Corporation purchased treasury shares in 2010 at a price of $20 per share and resold the treasury shares in 20X7 at a price of $35 per share. What amount should Sycamore report on its Income Statement for 20X7? 
A.$20 gain per share
B.$15 gain per share
C.$35 gain per share
D.$0

Answer 17

D

Question 18

he purchase of treasury share
A.Has no effect on total assets, total liabilities, or total shareholders’ equity
B.Decreases total assets and decreases total shareholders’ equity
C.Increases one asset and decreases another asset
D.Decreases total assets and increases total shareholders’ equity

Answer 18

B

Question 19

When does a cash dividend become a legal liability?
A.On date of record
B.On date of declaration and approval
C.On date of payment
D.It never becomes a liability because it is paid

Answer 19

C

Question 20

Apple Tee Mall, Inc., has 2,000 shares of 2%, $25 par cumulative preference shares and 125,000 shares of $2 par ordinary shares outstanding. At the beginning of the current year, preference dividends were four years in arrears. Apple Tree’s board of directors want to pay a $2.50 cash dividend on each share of outstanding ordinary shares in the current year. To accomplish this, what total amount of dividends must Apple Tree declare?

A.$312,500
B.$317,500
C.$318,750
D.Some other amount

Answer 20

B

Question 21

The purchase of treasury shares
A.Decreases total assets and increases total shareholders’ equity
B.Decreases total assets and decreases total shareholders’ equity
C.Increases one account of shareholders’ equity and decreases another
D.Has no effect on either total assets or shareholders’ equity

Answer 21

B

Question 22

.The difference between the issue price of the shares and the par value of the shares is:
A.Par value
B.Market value
C.Treasury shares
D.Additional paid-in capita

Answer 22

D