C213 FORMULAS EXAM QUESTIONS WITH ACTUAL RIGHT ANSWERS UPDATED

C213 FORMULAS EXAM QUESTIONS
WITH ACTUAL RIGHT ANSWERS
UPDATED 2026 - 2027


Accounting Equation - Correct Answer -Assets = Liabilities + Owner's Equity


Gross Profit - Correct Answer -net sales - cost of goods sold


Debt Ratio - Correct Answer -Total Debt/Total Assets


Current Ratio - Correct Answer -Current Assets/Current Liabilities


Return on Sales - Correct Answer -Net Income/Sales


Asset Turnover - Correct Answer -Sales/Total Assets


Return on Equity (ROE) - Correct Answer -Net Income/Total Equity


Price Earnings Ratio - Correct Answer -Market Value of Shares/Net Income


Average Collection Period - Correct Answer -Accounts Receivable/Average Daily Sales


number of days sales in inventory? - Correct Answer -Average Inventory / Average Daily
Cost of Goods Sold


Fixed Asset Turnover - Correct Answer -Sales / Average Fixed Assets


Return on Assets (ROA) - Correct Answer -(Net Income/Sales) x (Sales/Assets)


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