Accounting - HELp!

CFA Level II FRA
#1

I got screwed on level 1 because of one things… unearned revenue/deferred revenues (liabilities), There are a few more of thse that im blanking on?

Also, the basic equations:

CFAI loves to test on these basic equations.

Cash collected from customers = Sales - Net increase in accounts receviables + net increase in deferred revenue

Sales = cash collected from customers + Increase in accounts receviables - increase in deferred Revenue (just rearranging the first formula).

Is this just the same stuff we were doing with calculating CFO? For assets, we do the opposite, and for liabilities, we just do directly what it is? (Increase in accounts receivables is a subtraction. Increase in accounts payable is a subtraction)

Thanks!

#2

i really dont understand what you are trying to ask …

#3

Cash collected from customers = Sales - Net increase in accounts receviables + net increase in deferred revenue

Sales = cash collected from customers + Increase in accounts receviables - increase in deferred Revenue (just rearranging the first formula)

Are there any other types of basic equations like this that we should memorize?

I do know:

Ending Retained Earnings = Beginning RE + Net Income - Dividends

Ending Inventory = Beginning Inventory + Purchases - COGS

But i’m wondering more about ones directly ties to cash/sales…

Thanks!