accounting

The following are the most common accounting formulas: 1. Assets = Liabilities + Equity 2. Debits = Credits 3. Revenue – Expenses = Net Income / Net Loss 4. Cost of Goods Sold = Beginning Inventory + Purchases – Ending Inventory 5. Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue 6. Inventory Turnover = Cost of Goods Sold / Average Inventory 7. Current Ratio = Current Assets / Current Liabilities 8. Quick Ratio = (Current Assets – Inventory) / Current Liabilities 9. Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable 10. Debt-to-Equity Ratio = Total Liabilities / Total Equity