Finance Flashcards
1
Q
3 types of ratio
A
Profitability
Liquidity
Efficiency
2
Q
Gross profit percentage formula
A
Gross profit/sales x 100
3
Q
Profit for the year percentage formula
A
Profit for the year/sales x 100
4
Q
Return on equity percentage formula
A
Profit for the year/opening equity x 100
5
Q
Current ratio formula
A
Current assets/current liabilities
6
Q
Acid test formula
A
Current assets - closing inventory/current liabilities
7
Q
Rate of stock turnover formula
A
Cost of sales/average inventory*
8
Q
Average inventory* formula
A
Opening inventory + closing inventory/2
