Accounting is not an easy subject because there are many formulas you need to memorize and have a complete understanding on the concepts to know what accounting is. Check out below for help in free homework answers.

1. Net income: It is known as the bottom line for the reason that it is the accountant’s work sum total. In calculating the net income, you need to subtract the expenses from the revenues. Here is the formula:

Revenues minus Expenses =Net income

Note: Revenues are the kinds of customer’s sales and inflows. Also, the expenses are the costs that are associated in making sales.

2. Cost of goods sold: For retailers and manufacturers, the cost of goods sold figures out how much a certain company paid or will pay for sold inventory items. In computing the cost of goods sold by the retailers, here is the formula:

Cost of the beginning inventory + Inputs = Outputs

Cost of goods sold is usually included on the statement of income. It can also be referred to as the spending of the period of accounting. Through matching it with the revenues a company has from the good sold, then the matching principle of accounting will be achieved. (Accounting Coach)

Cost of the beginning inventory plus the cost of purchases minus the cost of ending inventory equals the costs of goods sold

3. Cost volume profit analysis: It helps you understanding how changes in the volume affect the net income and costs. If you understand the fixed costs, variable cost per unit, volume and sales price, you can figure out the net income. Here is the formula.

Net income equals (Sales price minus Variable cost per unit) (Volume) minus Fixed costs

Note: you need to understand that the total cost equals (variable cost per unit multiply by the volume) plus the Fixed costs.

Net income equals (Sales price multiply by the volume) minus Total cost

Sales price minus variable cost/unit = per unit contribution margin

This formula shortens the CVP formula: Net income equals (Contribution margin multiply by Volume) minus fixed costs

[What is NI (Net Income)? It is referred to as the business total profit or earning and helps in determining how profitable it is over a period of time, according to Investopedia.]

4. Accounting equation: This is one of the accounting formulas to know. The accounting equation equates the assets with the liabilities as well as owner’s equity. Here is the formula:

Assets equals to Liability plus the Owners’ Equity

Note: The assets are things owned by a company like inventory, equipment and cash that give some benefit in the future. The liabilities entail the sacrifices that each company will take like paying utilities or debts. The owner’s equity represents the company portion belonging to the company owner.

5. Contribution margin: It measures how an item group or a selling item increases the net income. In calculating it, you need to subtract the changing or variable costs from the sales. Here is the formula:

Total sales minus the total variable cost equals total contribution margin

Note: The contribution margin assists the managers in explaining how the decisions will make an impact income. In computing the contribution margin per unit, you need to divide the overall contribution margin by how many units were sold.

Sales price minus the variable cost per unit equals contribution margin per unit

In computing the ratio of contribution margin, the formula is “contribution margin divided by sales," either per unit or in total.

6. Break-even analysis: This helps you learn how much to sell in order to “break even." Here is the formula:

Break-even volume equals fixed costs divide by sales price minus the variable cost for every unit. In short, to know the number of units you need to break-even, you just divide the total fixed costs by the contribution margin per unit.

7. Quantity variance: It will measure how too little or how much in direct materials affects the total costs. Here is the formula:

Quantity variance equals Standard price multiply by (Standard quantity minus Actual quantity)

8. Future value: It will measure the cash flow. Students use this formula:

Future value equals –Present value multiply by (1 + interest rate)^Years

9. Expanded accounting formula: It shows the relationship of the balance sheet and income statement.

10. Per variance: It will show you the unexpected change in the direct materials cost that affects the total cost. Here is the formula:

Price variance equals (Standard price minus Actual price) multiply by Actual quantity

If you’re struggling to solve accounting problems, then you can always opt for accounting homework help from the experts who know how to come up with the best answers for knowing the solution on every accounting problem you may have in your homework. Finally, you can also find many resources available that will tutor you in tackling the hardest problems, according to ATA School.

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