This is a draft cheat sheet. It is a work in progress and is not finished yet.
Assets and Liabilities
Assets |
Future economic benefit from a past transition |
Liabilities |
Future sacrifices as a result of a past transaction |
Accounts Receivable |
Money that the buyer owes the seller |
Under assets on Balance Sheet |
Accounts Payable |
Money a company owes to suppliers for items that have been received, but not paid |
Under liabilities on balance sheet. |
Equity
Residual interest in assets after subtracting liabilities |
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Balance Sheet
Assets |
Liabilities |
-Accounts Receivable |
-Accounts Payable |
-Cash |
-Inventory, Equipment |
=Equity |
Accounting Ratios
Solvency (Long-Term) |
-Measure w/Debt Ratio |
Liquidity (Short-Term) |
-Measure w/Quick Ratio |
Profitability |
-Measure w/Gross Profit Margin |
Amortization
Expense the cost of asset over the projected lifespan |
For intangible assets |
Ex. Patents, Trademarks, Goodwill |
Depreciation
Write of an asset's value over a period of time |
For tangible assets |
Ex. Equipment |
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Income Statement
(Revenue + Gains) |
(Expenses + Losses) |
=Net Profit/Income |
-Gross Profit = (Revenue-COGS) |
-Pretax Profit = (Gross Profit-Operating Expenses) |
-After tax Profit |
Formulas
Equity |
Assets - Liabilities = Equity |
Quick Ratio |
(Cash + Receivables) / (Current Liabilities) |
Debt Ratio |
Total Liabilities/Total Assets |
Gross Profit Margin |
Gross Profit/Revenue |
Components of Debt
Principle |
Term |
Interest Rate |
LTV Ratio |
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