Accounting Flashcards
1
Q
Net profit
A
Gross profit - expenses
2
Q
Gross profit
A
Sales - cost of sales
3
Q
Gross margin
A
Gross profit / sales x100
Ideal: as high as possible
4
Q
Net margin
A
Net profit / sales x 100
Ideal: as high as possible
5
Q
Return on capital employed
A
Net profit / capital employed x 100
Ideal : greater than return on bank account
6
Q
Current ratio
A
Current assets : current liabilities
Ideal: 2:1
7
Q
Quick ratio
A
Current assets - closing stock : current liabilities
Ideal : 1:1
8
Q
Debt/ equity ratio
A
Debt capital / equity capital
Ideal : 50% is neutral
>50% high
<50% low
9
Q
BEP in units
A
Fixed costs/selling price per unit - variable cost per unit
10
Q
BEP in €
A
BEP in units x selling price
