formulas

Question 1

Gross Profit Margin

Answer 1

(Net Sales - COGS)/Net Sales(revenue)*100

Question 2

Net Profit Margin

Answer 2

Net Profit/Net Sales(revenue)*100

Question 3

Net Profit

Answer 3

Gross Profit- Total Expenses

Question 4

ROCE

Answer 4

(Net Profit/Capital Employed)*100

Question 5

Capital Employed

Answer 5

Total Assets - Current Liabilities

Question 6

Current Ratio

Answer 6

Current Assets/Current Liabilities

Question 7

Acid Test Ratio (Quick Ratio)

Answer 7

(Current Assets - Inventory)/Current Liabilities

Question 8

Average Inventory Turnover Period

Answer 8

(Opening Stock/Closing Stock)/2

/COGS *12(months)

Question 9

COGS

Answer 9

Opening Stock + Purchases - Closing Stock

Question 10

Receivables Collection Period

Answer 10

(Account Receivables/Net Sales(Revenue))*12

Question 11

Payables Payment Period

Answer 11

(Account Payables/Purchases)*12

Question 12

Assets=

Answer 12

Liability + Equity

Question 13

Gross Profit

Answer 13

Revenue - COGS

Question 14

Prudence Concept

Answer 14

A policy in accounting that makes sure to anticipate possible future losses but not future gains.

Question 15

Consistency accounting

Answer 15

Using the same principals, methods, practises and procedures from one accounting period to the next.