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Accounting Cheat-Sheet

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Paolo Tipo
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85 views1 page

Accounting Cheat-Sheet

Uploaded by

Paolo Tipo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

RATIOS

 Current ratio = Current assets / Current liabilities


 Receivables turnover = Net sales / Average net credit account receivables*1
 Return on assets = Net Income / Total Assets
 Total asset turnover = Net sales (or operating revenues) / Average total assets*2
 Gross profit = Sales (revenues) – Cost of goods sold (sales)
 Gross profit margin = [ Net) Sales – Cost of goods sold (sales)] / (Net) sales
 Net profit margin = Net income / Net sales (or operating revenues)
 Earnings per share = Net income / Average number of shares of common stock outstanding during the period

*1 Average net credit account receivables = (Beginning net credit account receivables + Ending net credit account receivables) / 2
*2 An average is computed as: (Beginning balance + Ending balance) / 2

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