| A | B |
|---|
| Assets-Liabilities | =Owner's Equity, show's a business' worth. |
| Revenue-Expenses | =Net Income/loss |
| Total Sales/Net Income | =Net Income ratio, shows how much it takes in sales to produce $1 in profit. |
| Current Assets/Current Liabilities | =Current ratio, shows if the business can pay its debts when due |
| Net Income (profit)/Owner's Equity | =Return on Equity, shows rate of return on money invested in a business |
| Total liabilities/Owner's Equity | =Debt to equity ratio, shows how much the business is relying on borrowed money |
| Depreciation record | Example: decrease in value of land |
| Asset Record | Example: worth of owned buildings |
| Tax record | Ex: Social Security deduction |
| Record of Accounts | Ex:Will be billed later for the order of supplies placed |
| Payroll records | Ex: Paying your employee 30,000 a year |
| Cash records | Ex: receiving a check for customer payment |
| Inventory record | Ex: you stocked your store with 25 new products today |
