Accounting Flashcards
(5 cards)
1
Q
Trade payables turnover
A
Trade payables/Credit purchases *365
2
Q
Trade receivables turnover
A
Trade receivables/Credit Sales*365
3
Q
Return on capital employed
A
Profit before interest/Capital employed(equity+Debentures) *100
4
Q
Non current asset turnover
A
Net revenue/ NBV of non current assets
5
Q
Business entity
Money measurement
Historical cost
Consistency concept
A
Business entity is treated as separate from its owner
Only transactions that can be measured in monetary terms are recorded in the accounts
Assets and expenses are recorded at their purchase price and not at their current market value
Same accounting methods should be applied from one period to the next. Ensuring accurate comparability
