Balance sheet and ratio Flashcards
1
Q
Net assets
A
Noncurrent assets + current assets – current liabilities – non- current liabilities
2
Q
Total equity
A
Share capital + retained profit
3
Q
Current Ratio
A
Current Assets ÷ Current Liabilities
4
Q
Acid Test Ratio
A
(Current Assets – Inventories/stock) ÷ Current Liabilities
5
Q
Capital employed
A
Non-current liabilities + total equity
6
Q
Gearing
A
Non-Current Liabilities ÷ Capital Employed X 100
7
Q
Return on Capital Employed (ROCE)
A
Operating Profit ÷ Capital Employed X 100
