Financial - My Cards

Question 1

Accounting Equation

Answer 1

assets = liabilities + equity

Question 2

AR turnover

Answer 2

credit sales / average AR

Question 3

Annual revenue per veterinarian

Answer 3

annual gross revenue / # FTE veterinarians

Question 4

Days in AR
(average age of AR)

Answer 4

365 days / AR turnover

Question 5

Average age of inventory
(ASLD - average shelf life in days)

Answer 5

365 days / inventory turnover ratio

Question 6

Average transaction value (ATV)

Answer 6

total revenue / total # transactions

Question 7

Return on capital

Answer 7

income/average total assets

Question 8

Average AR

Answer 8

beginning AR + ending AR / 2

Question 9

Earning percentage to gross revenue

Answer 9

profit / revenue

Measures amount of profit that can be made from each dollar of revenue received

Question 10

Average inventory

Answer 10

beginning inventory + ending inventory / 2

Question 11

Inventory turnover rate (ITR)

Answer 11

annual purchase of supplies / average inventory

Question 12

Net Profit Margin

Answer 12

Net income (before taxes) / revenue

Question 13

Gross Profit Margin

Answer 13

gross profit / revenue

Question 14

Federal Unemployment Tax Act (FUTA)

Answer 14

Payroll tax paid by employer on first $7K of earnings

Question 15

Federal Insurance Contribution Act (FICA)

Answer 15

Payroll tax paid by both employer and employee