Commerce & Economics
Economics & Accountancy Formulas Cheat Sheet
Macroeconomic indicators, elasticity formulas, accounting golden rules, and balance sheet ratios.
1. Macroeconomics & Elasticity
GDP (Expenditure Method)GDP = C + I + G + (X - M)
GNP FormulaGNP = GDP + NFIA
Price Elasticity of DemandE_d = %ฮQ_d / %ฮP
Marginal Cost (MC)MC = ฮTC / ฮQ
Profit MaximizationMR = MC
2. Accountancy & Financial Ratios
Accounting EquationAssets = Liab. + Equity
Current RatioCurrent Assets / Current Liab.
Working CapitalCurrent Assets - Current Liab.
Gross ProfitNet Sales - COGS
Debt-to-Equity RatioTotal Debt / Shareholders' Equity
3. The 3 Golden Rules of Accounting
Personal Accounts
Debit the Receiver, Credit the Giver.
Real Accounts (Assets)
Debit what comes in, Credit what goes out.
Nominal Accounts
Debit all expenses & losses, Credit all incomes & gains.
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