Finance Formula's Flashcards
1
Q
Net cash flow
A
Total Cash inflows - Total cash outflows
2
Q
Closing balance
A
Opening balance + net cash flow
3
Q
Total revenue
A
Selling price x Quantity sold
4
Q
Total cost
A
Fixed costs + variable costs
5
Q
Profit
A
Total revenue - Total costs
6
Q
Total contribution
A
Sales revenue - total variable costs
7
Q
Contribution
A
Selling price - Variable costs
8
Q
Profit (using contribution)
A
Contribution per unit x margin of safety
9
Q
Break even output
A
Total fixed costs/unit contribution
10
Q
Margin of safety
A
Actual sales - break even level of output
11
Q
Revenue
A
Unit price x quantity sold
12
Q
Gross profit
A
Sales revenue - cost of goods sold
13
Q
Cost of goods sold
A
Opening inventory + purchases - closing inventory
14
Q
Profit/loss for the year
A
Gross profit - expenses + other income
15
Q
Net book value
A
Cost - depreciation
