Accounting Equations

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Last updated 2:50 AM on 6/11/26
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7 Terms

1
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Assets =

Liabilties + Equity

2
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Net income =

Total Revenue - Total Expenses

3
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Gross profit =

Revenue - Cost Of Goods Sold (COGS)

4
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Current Ratio =

Current Assets / Current Liabilities

5
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Break-Even Point =

Fixed Costs / (Price - variable Cost)

6
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Debt-to-Equity Ratio =

Total Debt / Equity.

7
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Return On Equity =

(Net Income / Equity) x 100