Flashcards
1
Q
Revenue
A
Price x Quantity
2
Q
Profit
A
Total revenue - Total cost
3
Q
Total cost
A
Fixed Cost + Variable Cost
4
Q
Break even
A
Fixed Cost/ sales price - variable cost
5
Q
Contribution
A
Selling price - variable cost
6
Q
Gross Profit
A
Revenue - cost of sales
7
Q
Net profit
A
Gross profit - other operating expenses and interest
8
Q
Net Cash flow
A
Cash inflow - Cash outflow
9
Q
Closing Balance
A
Opening Balance + net cash flow
10
Q
Opening Balance
A
Closing balance of previous period
11
Q
Margin of safety
A
Actual sales - break even sales
12
Q
Gross profit margin
A
Gross profit / sales revenue x 100
13
Q
Net profit margin
A
Net profit/ sales revenue x 100
14
Q
Average rate of return
A
Average annual profit (total profit / number of years)/ cost of investment x 100
15
Q
Interest
A
Total repayment - borrowed amount/ borrowed amount x 100
