1. General Formulas for this Chapter

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Last updated 11:39 PM on 6/28/26
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6 Terms

1
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Market value (of a company)

Stock price x number of outstanding shares.

2
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Book value (of a company)

assets - liabilities (both from the balance sheet)

3
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Net amount (receivables)

Total receivables - allowance for the estimate of uncollectible accounts

4
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Net amount of property, plant, and equipment

Original cost - accumulated depreciation

5
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Amount reported for goodwill

acquisition price above the fair value of the identifiable net assets acquired

6
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Revenue or net sales

sales – sales returns and allowances – sales discounts