Financial Accounting Formulas Exam Test Guide Questions and Answers
3 views 0 purchase
Course
Financial Accounting
Institution
Financial Accounting
Basic Accounting Equation - Answer-A=L+SE
Stockholders Equity - Answer-Common Stock+ Retained Earnings-R-E-D
Net Income - Answer-R-E, when R is greater than E
Net Loss - Answer-R-E, when E is greater than R
Income Statement (in-brief) - Answer-Revenues - Expenses = Net Income or Net Los...
Income Statement (in-brief) - Answer-Revenues - Expenses = Net Income or Net Loss
Retained Earnings Statement (in-brief) - Answer-Beginning retained earnings + net
income - dividends = Ending Retained Earnings
Retained Earnings - Answer-R-E-D, of previous year that is kept in the business
Accrued Interest on Face Value of Note - Answer-Face value of note * annual interest
rate * time in terms of One year (x/12) = interest
Gross Profit - Answer-Net Sales - COGS
Net Income (Loss) - Answer-Gross Profit - Operating Expenses
Cost of Goods Available for Sale - Answer-Beginning Inventory + Cost of Goods
Purchased
Ending Inventory - Answer-Cost of Goods Available for Sale - COGS
Net Sales - Answer-Sales Revenue - Sales Returns and Allowances - Sales Discounts
Gross Profit Rate - Answer-Gross Profit / Net Sales
COGS Formula in a periodic system - Answer-(Beginning inventory + purchases) -
ending inventory = COGS
Weighted - Average Cost - Answer-Cost of Goods Available for Sale / Total Units
Available for Sale
Bank Reconciliation - Answer-Un-adjusted bank balance + deposits in transit -
outstanding checks +/- bank errors +/- bank memoranda
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.