Accounting Formulas

Balance Sheet

Chain Discounts and Net Cost Price and Net Cost Equivalent

Cost Recovery Method

Earnings Before Interest and Taxes (EBIT) and Net Income

High-Low Method

Installment Sales Method of Accounting

Inventory Method

Inventory Turnover and Average Inventory

Percentage of Completion

Receivables Ratios

Vendor Discount Effective Rate of Interest

Shows various accounting formulas

LessonBalance Sheet

Given various asset and liability entries, this determines various calculations that can be made from the balance sheet.

CalculatorChain Discounts and Net Cost Price and Net Cost Equivalent

Given a chain discount and an original price, this calculates the total discount and net cost price.

CalculatorCost Recovery Method

Given a sales price, cost, and set of payments, this determines the gross profit per year based on the cost recovery method.

CalculatorEarnings Before Interest and Taxes (EBIT) and Net Income

Given inputs of sales, fixed costs, variable costs, depreciation, and taxes, this will determine EBIT and Net Income and Profit Margin

Calculator · Watch the VideoHigh-Low Method

Calculates Variable Cost per Unit, Total Fixed Cost, and Cost Volume using the High-Low Method

Calculator · Watch the VideoInstallment Sales Method of Accounting

Given a sales price, cost amount, installment payment amount and term, this will show the accounting for the Installment Payment method.

Calculator · Watch the VideoInventory Method

Takes accounting entries using the FIFO (first in first out) and LIFO (last in first out) inventory methods.

CalculatorInventory Turnover and Average Inventory

Calculates inventory turnover ratio and average inventory

Calculator · Watch the VideoPercentage of Completion

Given a sales price, total costs, and costs per period, this determines the gross profit to date using the percentage of completion method.

CalculatorReceivables Ratios

Given Net Sales, Beginning Accounts Receivable, and Ending Accounts Receivable, this determines Average Accounts Receivable, Receivables turnover ratio, and Average Collection Period.

CalculatorVendor Discount Effective Rate of Interest

Calculates the effective rate of interest earned from a vendor discount for a prepayment of a balance within a certain amount of days for a percentage discount

Calculator · Watch the Video