B1 (cpa)

Part 1 Formula Reference Guide Term Formula Unit Absorption costing equation − Revenue Less: cost of goods sold − Gross margin Less: operating expenses (both fixed and variable) Net income 2 Accounting equation (or balance sheet equation) Assets = Liabilities + Owners' equity (or stockholders' equity) 1 Asset turnover Asset turnover = Sales Assets 4 Budgeted production Budgeted sales + Desired ending inventory – Beginning inventory Budgeted production 3 Cash bu...