Finance Equations Flashcards
1
Q
Net cash flow formula
A
Total inflow-total outflow
2
Q
Opening balance definition
A
The cash left in the business at the end of the last time period
3
Q
Closing balance formula
A
Net cash flow +opening balance
4
Q
Total Sales revenue
A
Price times quantity
5
Q
Total variable costs
A
Variable costs per unit times quantity
6
Q
Profit/loss
A
Total revenue-total costs
7
Q
Gross profit
A
Total revenue- cost of sales
8
Q
Net profit
A
Gross profit-expenses
9
Q
Net profit margin
A
Net profit/total revenue times 100
10
Q
BEP
A
Fixed costs/-sales revenue- variable costs
11
Q
Percentage Change
A
Actual change/original amount times 100
12
Q
How to calculate Gross profit margin
A
Gross profit / Revenue x 100
13
Q
Average rate of return formula
A
dividing the average annual profit by the cost of investment and multiplying by 100 percent.
