Accounting Equations UPDATED Actual
Exam Questions and CORRECT Answers
Assets Liabilites Equity Equation - CORRECT ANSWER✔✔- Assets = Liabilities + Equity
Total Equity Equation - CORRECT ANSWER✔✔- Common Stock + Retained Earning
Retained Earning Equation - CORRECT ANSWER✔✔- Beginning Retained Earning + Net
Income -Dividends =
Net Income Equation - CORRECT ANSWER✔✔- Revenues - Expenses
Gross Profit Equation - CORRECT ANSWER✔✔- Sale Revenue - Cost of Good Solds
Working Capital Equation - CORRECT ANSWER✔✔- Current Assets - Current Liabilities
Current Ratio Equation - CORRECT ANSWER✔✔- (Current Assets)/(Current Liabilities )
Depreciation Expense Equation - CORRECT ANSWER✔✔- (Cost - Residual Value) / Useful
lifetime
Interest Expense Equation - CORRECT ANSWER✔✔- Principal X Rate X Time
Current Cash Debt Coverage Ratio Equation - CORRECT ANSWER✔✔-
Account Receivable Turnover Equation - CORRECT ANSWER✔✔-
Average Collection Period Equation - CORRECT ANSWER✔✔-
Inventory Basic Formula - CORRECT ANSWER✔✔-
Exam Questions and CORRECT Answers
Assets Liabilites Equity Equation - CORRECT ANSWER✔✔- Assets = Liabilities + Equity
Total Equity Equation - CORRECT ANSWER✔✔- Common Stock + Retained Earning
Retained Earning Equation - CORRECT ANSWER✔✔- Beginning Retained Earning + Net
Income -Dividends =
Net Income Equation - CORRECT ANSWER✔✔- Revenues - Expenses
Gross Profit Equation - CORRECT ANSWER✔✔- Sale Revenue - Cost of Good Solds
Working Capital Equation - CORRECT ANSWER✔✔- Current Assets - Current Liabilities
Current Ratio Equation - CORRECT ANSWER✔✔- (Current Assets)/(Current Liabilities )
Depreciation Expense Equation - CORRECT ANSWER✔✔- (Cost - Residual Value) / Useful
lifetime
Interest Expense Equation - CORRECT ANSWER✔✔- Principal X Rate X Time
Current Cash Debt Coverage Ratio Equation - CORRECT ANSWER✔✔-
Account Receivable Turnover Equation - CORRECT ANSWER✔✔-
Average Collection Period Equation - CORRECT ANSWER✔✔-
Inventory Basic Formula - CORRECT ANSWER✔✔-
