finance Flashcards
1
Q
what is the formula for profit
A
sales revenue - costs
2
Q
what is the formula for sales revenue
A
price x number of units sold
3
Q
what is the formula for total costs
A
variable costs + fixed costs
4
Q
what is the formula for variable costs
A
number of units x cost per unit
5
Q
what is the formula for gross profit
A
sales revenue - cost of goods sold
6
Q
what is the formula for gross profit
A
sales revenue - cost of goods sold
7
Q
list 2 short term sources of finance
A
trade credit
overdraft
8
Q
name a medium term source of finance
A
medium term bank loan
9
Q
list 2 long term sources of finance
A
retained profit bank loan share capital mortgage personal savings
10
Q
list 3 internal sources of finance
A
retained profits divestment (getting rid of business activities that have no more value) sales/leaseback sales of fixed assets reduction of current assets
