Formulas Flashcards
1
Q
Total amount of money
(Assets)
A
Assets = Liabilities + Owner’s Equity
2
Q
Cost of producing/manufacturing goods
(COGS)
A
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
3
Q
Amount of money earned without subtracting production/manufacturing costs
(Gross Profit)
A
Gross Profit = Sale Revenue - Cost of Goods
4
Q
Amount of Gross Profit after subtracting manufacturing/production costs
(Net Profit)
A
Net Profit = Gross profit - Expenses
5
Q
Amount of money earned after selling goods and services
(Sales revenue)
A
Total revenue = Price of item x Quantity sold
6
Q
The point when total cost and total revenue are equal
(Break-even point)
A
Break-even point = Total Fixed Costs/Unit Price Cost - Variable Cost
