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Accounting formula sheet printable

Every core formula from intro financial and managerial accounting on one page. Print it or save it as a PDF for exam review.

By Chnini Ramdhane · Updated

Accounting basics

Accounting equationAssets = Liabilities + Equity
Net incomeRevenue − Expenses
Ending retained earningsBeginning RE + Net income − Dividends
Debit / credit ruleDEA increase with debits · LER increase with creditsDividends, Expenses, Assets · Liabilities, Equity, Revenue

Inventory

Goods available for saleBeginning inventory + Purchases
Cost of goods soldGoods available for sale − Ending inventoryPeriodic system
Gross profitNet sales − Cost of goods sold
Weighted-average unit costCost of goods available ÷ Units available

Depreciation

Straight-line(Cost − Salvage value) ÷ Useful life
Double-declining balanceBook value × (2 ÷ Useful life)Stop at salvage value
Units of activity(Cost − Salvage) ÷ Total units × Units used
Book valueCost − Accumulated depreciation

Cost-volume-profit

Contribution margin per unitPrice − Variable cost per unit
Contribution margin ratioContribution margin ÷ Price
Break-even unitsFixed costs ÷ Contribution margin per unit
Break-even salesFixed costs ÷ Contribution margin ratio
Target profit units(Fixed costs + Target profit) ÷ Contribution margin per unit
Margin of safetyActual sales − Break-even sales
Degree of operating leverageContribution margin ÷ Operating income

Financial ratios

Current ratioCurrent assets ÷ Current liabilities
Quick ratio(Cash + Short-term investments + Receivables) ÷ Current liabilities
Debt ratioTotal liabilities ÷ Total assets
Debt-to-equityTotal liabilities ÷ Total equity
Gross marginGross profit ÷ Net sales
Net profit marginNet income ÷ Net sales
Return on assetsNet income ÷ Average total assets
Return on equityNet income ÷ Average equity
Inventory turnoverCost of goods sold ÷ Average inventory
Receivables turnoverNet credit sales ÷ Average accounts receivable
Earnings per share(Net income − Preferred dividends) ÷ Weighted-average common shares

Time value of money

Future valueFV = PV × (1 + r)ⁿ
Present valuePV = FV ÷ (1 + r)ⁿ
Present value of an annuityPV = PMT × [1 − (1 + r)⁻ⁿ] ÷ rOrdinary annuity
Future value of an annuityFV = PMT × [(1 + r)ⁿ − 1] ÷ rOrdinary annuity
Net present valueNPV = Σ CFₜ ÷ (1 + r)ᵗ − Initial investment

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How to use this formula sheet

Most formulas link to a free calculator on StepSolver that shows each step, so you can check your homework answers. Before an exam, try writing each formula from memory and check it against this page.

Frequently asked questions

Can I use this formula sheet on my exam?

That depends on your instructor. Many allow a one-page sheet; check your course rules first.

How do I save it as a PDF?

Click “Print or save as PDF”, then choose “Save as PDF” as the printer.

Which accounting courses does it cover?

Principles of Financial Accounting and Managerial Accounting: the first two college accounting courses.

Keep studying

Accounting practice quiz →Accounting flashcards →Financial ratios calculator →