FINANCIAL ACCOUNTING REVISION
- Created by: Arzoo.xo
- Created on: 07-01-18 11:07
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- FINANCIAL ACCOUNTING
- INCOME STATEMENT
- COST OF GOOD SOLD = OPENING STOCK + PURCHASES - CLOSING STOCK
- GROSS PROFIT = SALES - COGS
- OPERATING PROFIT = GROSS PROFIT - OPERATING EXPENSES
- NET INCOME = OPERATING PROFIT - INTEREST - TAX
- STRUCTURE
- SALES
- - COGS
- = GROSS PROFIT
- - OPERATING EXPENSE
- = OPERATING PROFIT
- - INTEREST AND TAX
- = NET INCOME
- - INTEREST AND TAX
- = OPERATING PROFIT
- - OPERATING EXPENSE
- = GROSS PROFIT
- - COGS
- SALES
- BALANCE SHEET
- NET ASSETS = TOTAL ASSETS - TOTAL LIABILITIES
- STRUCTURE
- NON CURRENT ASSETS
- CURRENT ASSETS
- CURRENT LIABILITIES
- NON CURRENT LIABILITIES
- CURRENT LIABILITIES
- NET ASSETS
- EQUITY - ( SHARE CAP. , RETAINED EARNINGS , DRAWINGS)
- TOTAL EQUITY
- EQUITY - ( SHARE CAP. , RETAINED EARNINGS , DRAWINGS)
- NET ASSETS
- CURRENT LIABILITIES
- NON CURRENT LIABILITIES
- CURRENT LIABILITIES
- CURRENT ASSETS
- NON CURRENT ASSETS
- FOR RETAINED EARNINGS ADD ON NET INCOME FROM INCOME STAT.
- RATIO ANALYSIS
- ROCE = OPERATING PROFIT / TOTAL EQUITY +NON CURRENT LIABILITIES
- PAYMENT SETTLEMNT PERIOD = PAYABLES / CREDIT PURCHASE X 365
- GROSS PROFIT MARGIN = GROSS PROFIT / SALES X 100
- OPERATING PROFIT MARGIN = OPERATING PROFIT / SALES X 100
- INVENTORY HOLDING PERIOD = INVENTORY / COGS X 365
- RECEIVABLE SETTLEMNT PERIOD = RECEIVABLE / CREDIT SALES X 365
- CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES
- ACID TEST RATIO = CURRENT ASSETS - INVENTORY / CURRENT LIABILITIES
- T ACCOUNTS & JOURNAL ENTRIES
- CASH IN = DEBIT
- CASH OUT = CREDIT
- DEBIT = GAIN
- CREDIT = LOSS
- C/D = CLOSING BALANCE
- B/D = OPENING BALANCE
- DEBIT BEFORE CREDIT ALWAYS
- DOUBLE ENTRY = MUST BALANCE
- INCOME STATEMENT
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