Accounting Equation Formula ... The balance sheet is based on the double-entry accounting system where total assets of a company are equal to the total of liabilities and shareholder equity.

*This article describes the formula syntax and usage of the LCM function in Microsoft Excel. Description. Returns the least common multiple of integers. The least common multiple is the smallest positive integer that is a multiple of all integer arguments number1, number2, and so on. Use LCM to add fractions with different denominators. Syntax*The LCM (Lower of Cost or Market) method is an accounting principle that uses a balance between the cost of a product and its market value. The quiz, which can be used before and after the lesson, covers topics including the acquisition price and replacement cost of inventory. Overall Return on Stock = Dividend Yield + Capital Gains Yield (Gordon’s Formula) Expected ROR = = pi ri Where pi represents the Probability of Outcome “i” taking place and ri represents the Rate of Return (ROR) if Outcome “i” takes place. The LCM method has long been accepted in accounting. Under LCM, inventory items are written down to market value when the market value is less than the cost of the items. For example, assume that the market value of the inventory is $39,600 and its cost is $40,000.