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10 Cards in this Set

  • Front
  • Back
BASIC ACCOUNTING RELATIONSHIPS
A=LIABILITIES + OWNERS EQUITY

A = L + OE
COST OF GOODS SOLD (COGS)
OPENING + PUCHASES - CLOSING STOCK

O + P -CS
WORKING CAPITAL RATIO
(CURRENT RATIO)
CURRENT ASSETS
---------------
CURRENT LIABILITES

CA / CL
DEBT TO EQUITY RATIO
GEARING RATIO
LIABILITIES
-----------
OWNERS EQUITY

L/OE
GROSS PROFIT
SALES - COST OF GOODS

S - COGS
NET PROFIT
GROSS PROFIT + OTHER INCOME - OTHER EXPENSE

GP + OI - OE
GROSS PROFIT RATIO
GROSS PROFIT
-------------
NET SALES

GP/NS
NET PROFIT RATIO
NET PROFIT
---------
NET SALES

NP/NS
RETURN ON OWNERS EQUITY
NET PROFIT
----------
OWNERS EQUITY

NP/OE
ACCOUNTS RECIEVABLE TURNOVER RATIO
ART = TOTAL CREDIT SALES
------------------
ACCOUNTS RECIEVABLE
365 DIVIDED BY ART

ART = TCS/AR
365/ART