Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business equations > Finance equations > Flashcards

Finance equations Flashcards

1
Q

What is the equation for PERCENTAGE CHANGE?

A

(Difference or change / original) x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the equation for REVENUE?

A

Price x units sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the equation for TOTAL COSTS?

A

Variable costs + fixed costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the equation for AVERAGE UNIT COST?

A

Total cost / output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the equation for PROFIT?

A

Total revenue - total costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the equation for MARKET SHARE?

A

(Sales value or volume of your business / Sales value or volume of whole market) x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the equation for MARKET GROWTH?

A

(Change in sales value or volume / Original sales value or volume) x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the equation for Average Rate of Return (ARR)?

A

((Total Profit - Investment Cost) / num of years) / Initial investment cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the equation for BREAK EVEN OUTPUT?

A

Total input = total output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the equation for MARGIN OF SAFETY?

A

Actual sales (OR forecasted sales) - break even output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the equation for NET CASH FLOW?

A

Total inflow - total outflows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the equation for CLOSING BALANCE?

A

Opening balance - net cash flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the equation for GROSS PROFIT?

A

Revenue - cost of sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the equation for OPERATING PROFIT?

A

Gross profit - Overheads or expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the equation for NET PROFIT?

A

Operating Profit - tax - finance costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the equation for GROSS PROFIT MARGIN?

A

(Gross profit / sales revenue) x 100

17
Q

What is the equation for NET PROFIT MARGIN?

A

(Net profit / sales revenue) x 100

18
Q

What is the equation for NET CURRENT ASSETS?

A

Current assets - current liabilities

19
Q

What is the equation for NET ASSETS?

A

Total assets - total liabilities

20
Q

What is the equation for TOTAL EQUITY?

A

Share capital + retained profits

21
Q

What is the simpler equation for AVERAGE RATE OF RETURN (ARR)?

A

(Average annual profit / cost of investment) x 100

Business equations (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions