7-1 and 7-2 Audit your understanding
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Formula for calculating the total expenses ratio
Total Expense / Total sales = Total Expenses Ratio
formula for calculating current capital
cap ( - or +) (net loss or net income) - drawing = current capital
Four sections on a balance sheet
heading assets liabilities owner equity
The four sections of an income statement
heading revenue expense net income or net loss
Formula for calculating the net income ratio
net income / total sales = net income ratio
