Dep./general formulas

Question 1

Straight-Line Depreciation?

Answer 1

Cost - Residual Value) / Useful Life

Question 2

What is the formula for Reducing Balance Depreciation? (2)

Answer 2

Net Book Value × Depreciation Rate
(cost-a.d) x rate

Question 3

Accounting Equation?

Answer 3

Assets = Capital + Liabilities

Question 4

How do you calculate Capital at the end of the year?

Answer 4

Opening Capital + Profit - Drawings

Question 5

How do you calculate Profit using capital balances?

Answer 5

Closing Capital - Opening Capital + Drawings - Additional Capital

Question 6

What is the formula for Net Purchases?

Answer 6

Purchases - Purchase Returns

Question 7

What is the formula for Net Sales?

Answer 7

Sales - Sales Returns

Question 8

What is the formula for Cost of Sales?

Answer 8

Opening Inventory + Net Purchases - Closing Inventory

Question 9

What is the formula for Gross Profit?

Answer 9

Net Sales - Cost of Sales

Question 10

What is the formula for Net Profit?
Gross Profit - Expenses + Other Income

Answer 10

Gross Profit - Expenses + Other Income