Balance Sheets and current ratio Flashcards
Net current asset equation
Current assets-current liabilities
Assets equation
Liabilities+ capital
Acid ration equation
Current assets-stock/current liabilities
What is acid ratio
When the stock is taken away from current assets
What is the current ratio
Difference of current assets to current liabilities
What is current ratio equation
Current assets/ current liabilities
What is the gross profit margin
Measuring how much revenue is left over after paying cost of goods
What is net profit margin
Percentage of revenue left after all expenses hVe been deducted
What is the net current assets equation
Current assets-current liabilities
What is a balance sheet
Shows the value of a business in date and shows what the business owns and oWes
What is fixed assets
Items a business must keep to trade
What are current assets
Items that can change with every transaction
