The Accounting Equation
By Lynette Teal
Learners examine the accounting equation and view examples of how account items and figures are included in each part of the equation.
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1. The coupon rate on the bond is 15% and the market interest rate is 15.59% valuation of a thirty-
year Government bond at the time of issue. Calculate the price of the bond under valuing a
straight bond.
2. Assume for balance sheet of ABC Bank for June 30, 2018 the following information is given:
Fixed Asset 40,000, Cash 2,000, Investments = 6,000, Stock= 12,000, Equity share capital=
20,000, Creditors=6000, Bills payable = 6,000, Mortgage Debentures 28,000. Cost of sales
103,200, Net Sales-120,000, Giross profit= 16,800, Net working capital= 16,000, Net income
tax-4,000 before tax 8,000 and Net income after tax 4,000
Calculate and Interpret the Results
a) Stock turnover ratio
b) Current ratio
c) Gross profit ratio
d) Net profit ratio
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