Accounting & Finance Flashcards by Navleen Dhillon | Brainscape

Q

Total costs equation

A

Fixed + variable cost

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Q

Unit costs equation

A

Total cost / output

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Q

Revenue equation

A

Price x quantity sold

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Q

Contribution per unit equation

A

Price - variable cost

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Q

Break Even equation

A

Fixed costs / contribution

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Q

Margin of Safety equation

A

Actual sales - break even sales

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Q

Average Rate of Return equation

A

Annual average profit / cost of investment x 100

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Q

Net Cash Flow equation

A

Total inflows - total inflows

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Q

Gross profit equation

A

Sales revenue - costs of sales

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Q

Operating profit equation

A

Gross profit - expenses

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Q

Profit before tax equation

A

Operating profit - finance costs

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Q

Profit for the year (Retained profit)

A

Net profit - tax and dividends

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Q

Net Current Assets (Working Capital)

A

Current assets - current liabilities

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Q

Net Assets equations

A

Total assets - total liabilities

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Q

Straight Line Depreciation equation

A

Initial cost - residual value / life of asset

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Q

Current Ratio equation

A

Current assets / current liabilities

Q

Acid Test equation

A

Current assets - inventory (stock) / current liabilities

Q

Gearing equation

A

Non current liabilities/ capital employed x 100

Q

Debt to Equity Ratio equation

A

Debt / equity x 100

Q

Interest Cover equation

A

Operating profit / interest payable (finance costs)

Q

Asset Turnover equation

A

Revenue / non-current assets

Q

Stock Turnover equation

A

Cost of stock / average stock

Q

Debtor Days equation

A

Trade receivables / revenue x 365

Q

Creditor Days equation

A

Trade payables / cost of sales x 365

Q

Gross Profit Margin equation

A

Gross profit / sales revenue x100

Q

Net Profit Margin equation

A

Net profit / sales revenue x 100

Q

ROCE (Return on Capital Employed) equation

A

Operating profit / capital employed x 100

Q

Return on Equity equation

A

Profit for the year / shareholders equity

Q

Dividend per share equation

A

Total dividends paid / number of shares issued

Q

Dividend Yield equation

A

Dividend per share / market price of share x 100

Q

Earnings per share equation

A

Profit for the year / number of shares issued

Q

Price Earnings Ratio equation

A

Market price of share / earnings per share