Chapter 21 Formulas Flashcards
1
Q
Assets
A
Liabilities + Owner’s Equity
2
Q
Owner’s Equity
A
Assets - Liabilities
3
Q
Liabilities
A
Assets - Owner’s Equity
4
Q
Costs of Goods Sold
A
(Beginning Inventory + Receipts) - Ending Inventory
5
Q
Gross Profit
A
Net Sales - Cost of Goods Sold
6
Q
Net Income
A
Gross Profit - Total Operating Expenses
7
Q
Percent of Net Sales
A
Amount for Item/Net Sales
8
Q
Current Ratio
A
Total Assets/Total Liabilities
9
Q
Quick Ratio
A
(Total Assets - Inventory)/Total Liabilities
10
Q
Percent Change
A
(Amount of Change/Base Figure) x 100%
