Equations Flashcards
1
Q
Profit
A
Revenue - costs
2
Q
Revenue
A
Price x Quantity
3
Q
Break-Even
A
FC/(SP-VC)
4
Q
Margin of Safety
A
Actual sales - Break even sales
5
Q
AROR
A
Average annual profit/Cost of investment x 100
6
Q
Net profit
A
Gross profit - other expenses
7
Q
Net profit margin
A
Net profit/sales revenue x 100
8
Q
Gross profit
A
Revenue - cost of sales
9
Q
Gross profit margin
A
Gross profit/sales revenue x 100
10
Q
Net cash flow
A
Inflows - outflows
11
Q
PED
A
% change in quantity demanded/ % change in price
12
Q
YED
A
% change in quantity demanded/ % change in income
13
Q
Contribution
A
SP-VC per unit
14
Q
Structure of the profit+loss account
A
Sales-Cost of Sales = Gross
Gross-Expenses = Operating
Operating-Interest = Net
15
Q
Current Ratio
A
Current Assets / Current Liabilities
16
Q
Acid Test Ratio
A
Current Assets - Stock / Current Liabilities
