Accounting 302: Advanced Accounting Formulas

Instructor: James Walsh

M.B.A. Veteran Business and Economics teacher at a number of community colleges and in the for profit sector.

Below is a list of formulas for Accounting 302. You can print it out and use it on the proctored exam to help you practice calculating important pieces of accounting information.

Accounting profit
Accounting profit


Return on equity
Return on equity


Future value of a sum
FV
where r = interest rate and n = years


Future value of a stream of equal payments
FVA
where r = interest rate and n = years


Present value of a sum
PV1
where r = interest rate and n=years
Present value of a stream of equal payments
PVA
where A= the payments, r = interest rate and n=years


Net present value
NPV


Debt to equity ratio
Debt to equity ratio


Accounts receivable turnover
AR turnover


Collection period ratio
Collection


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