Brainscape's Knowledge GenomeTM

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


See full index

4.2 Management Accounting: Decision & Control > Ratios - Quick Fire > Flashcards

Ratios - Quick Fire Flashcards

1
Q

Asset Turnover (No of times)

A

(Tot Ass - Curr Liab)
(NCA + Net CA)

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

Sales - (Cost of Materials + Cost of Bought-in Svs)

A

Value Added

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

Operating (Net) Profit Margin

A

Sales

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

Debt to Equity Ratio

A

(Ord Share Cap + Reserves)

*Not debentures which is liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q 
Unfulfilled Orders (Units) 
--------------------------                     x 12
Annual Sales (Units)
A

Average delay in completing an order in months

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

Sales

A

Gross Profit Margin

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

Debt + Equity

Watch out for eg.
Preferential shares 8% (presume the 8% is a dividend)
Need to find out a bit more about this

A

Gearing Ratio

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

Sales

A

Advertising Cost as a % of Turnover

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

(Ordinary Share Cap + Reserves)

A

Debt to Equity Ratio

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

Current Ratio

A

Current Liabilities

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

Receivables Payment Period in Days

A

Credit Sales

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

(Tot Assets - Curr Liab)
(NCA + Net CA)

A

Asset Turnover (No of times)

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

Gross Profit Margin

A

Sales

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

Sales

A

Operating (Net) Profit Margin

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

Advertising Cost as % of Turnover

A

Sales

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

Credit Sales

A

Receivables Payment period in Days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Gearing Ratio

A

Debt + Equity

Watch out for eg.
Preferential shares 8% (presume the 8% is a dividend)
Need to find out a bit more about this

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Current Liabilities

A

Current Ratio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Capital Employed
(NCA + Net CA)

A

Return on Capital Employed (ROCE)

Remember can be split into profit margin & asset turnover.
(Profit / Sales) x (Sales / Cap Empl (Assets) = ROCE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Current Liabilities

A

Quick Ratio (Acid test)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Value Added

A

Sales - (Cost of Materials + Cost of Bought-in Svs)

22
Q

Quick ratio (Acid test)

A

Curr Liabilities

23
Q

Payables’ Payment period

A

Credit Purchases

24
Q

Budgeted Hrs

A

Capacity Ratio

25
Q

Inventory Turnover (No. of times)

A

Average Inventory

or

Closing Inventory

26
Q

Efficiency Ratio

A

Actual Hrs worked (do not used Paid hrs if given)

27
Q

Budgeted Standard Hrs

A

Activity Ratio

Production volume ratio

28
Q 
Concept of Performance Measurement from 4 perspectives:
Financial
Customer
Internal
Innovation & Learning
A

Balanced Scorecard

29
Q

Cost of Sales

(or closing inventory)

A

Average age of Inventory (days)
also called Inventory Holding Period
also Inventory Turnover in Days

30
Q

Actual Hrs worked (do not used Paid hrs if given)

A

Efficiency Ratio

31
Q

Average age of Inventory (days)
also called Inventory Holding Period
also Inventory Turnover in Days

A

Cost of Sales

(or closing inventory)

32
Q

Credit Purchases

A

Payables’ Payment period

33
Q

Activity Ratio

Production volume ratio

A

Budgeted Standard Hrs

34
Q

Balanced Scorecard

A 
Concept of Performance Measurement from 4 perspectives:
Financial
Customer
Internal
Innovation & Learning
35
Q

Average Inventory

or

Closing Inventory

A

Inventory Turnover (No. of times)

36
Q

Capacity Ratio

A

Budgeted Hrs

37
Q

Need to learn also the ‘categories’ in terms of performance mesures and who they’re of interest to??

A

ie
Liquidity
Efficiency
Profitability

38
Q

Average delay in completing an order in months

A 
Unfulfilled Orders (Units) 
--------------------------                     x 12
Annual Sales (Units)
39
Q

Return on Capital Employed (ROCE)

A

Capital Employed
(NCA + Net CA)

40
Q

Balanced scorecard - which ratios for:

Financial

A

Gross Profit %

Operating Profit %

ROCE

Added Value

41
Q

Balanced scorecard - which ratios for:

Customer

A

Delivery Times (or Order Backlogs)

Repeat Orders

Sales returns as a % of Net sales

42
Q

Balanced scorecard - which ratios for:

Internal

A

Added Value

Cost of Quality

Reject Rates

Sales Returns (due to quality issue) as a % of Net Sales

43
Q

Balanced scorecard - which ratios for:

Innovation & Learning

A

R & D Expenditure (or as %)

Revenue from New Products (or as %)

44
Q

Current ratio & Quick ratio (acid test)

Good for?

A

If analysing balance sheet w/o access to management information it is customary to calculate these 2 as indicators of the company’s ability to ‘pay it’s way’ - ie. LIQUIDITY

45
Q

Inventory holding period in days

Higher number of days is good or bad?

A

Bad (Taking longer to sell)

46
Q

Working capital?

A

Net current assets

Current assets minus current liabilities

47
Q

Flexible budgeting is a form of ‘What If’ analysis

A

.

48
Q

Interest cover ratio

A

Operating profit
____________
interest same period

If profit is negative the interest cover figure is often stated as zero

49
Q

Operating profit
____________
interest same period

A

Interest cover ratio

If profit is negative the interest cover figure is often stated as zero

50
Q

C/S or P/V ratio

Contribution to Sales ratio or Profit volume ratio

A

Contribution / Selling price
(expressed as a number not % … eg 0.75)

Don’t forget to use Contribution not Var Costs!

Use for calculating BEP

FC / C:S (or P:V) = BEP

51
Q

Working Capital Cycle

A

Inventory Days + Receivable Days - Payable Days

52
Q

Idle time ratio

A

Paid hours

4.2 Management Accounting: Decision & Control (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions