Unit 2 - Finance Flashcards
1
Q
Net Assets:
A
Non current Assets + Working capital - long term liabilities
2
Q
Working Capital:
A
Current Assets - Current Liabilities
3
Q
Current ratio:
A
Current Liabilities
Ideal 2:1
4
Q
Acid test ratio:
A
Current Assets - Stock (inventory)
———————————————
Current liabilities
Ideal 1:1
5
Q
Mortgage
A
Big sum of money often used to buy premises paid off over 25-35 years \+ Big sum of money Monthly payments are predictable - High interest Tied in for a long time
6
Q
Gross Profit Margin
A
Gross Profit
————— X 100
Revenue
7
Q
Net Profit Margin
A
Net Profit
————— X 100
Revenue
8
Q
Percentage change
A
Difference
————— X 100
Original
