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Business Unit 2 > Balance Sheets and current ratio > Flashcards

Flashcards in Balance Sheets and current ratio Deck (12)
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1
Q

Net current asset equation

A

Current assets-current liabilities

2
Q

Assets equation

A

Liabilities+ capital

3
Q

Acid ration equation

A

Current assets-stock/current liabilities

4
Q

What is acid ratio

A

When the stock is taken away from current assets

5
Q

What is the current ratio

A

Difference of current assets to current liabilities

6
Q

What is current ratio equation

A

Current assets/ current liabilities

7
Q

What is the gross profit margin

A

Measuring how much revenue is left over after paying cost of goods

8
Q

What is net profit margin

A

Percentage of revenue left after all expenses hVe been deducted

9
Q

What is the net current assets equation

A

Current assets-current liabilities

10
Q

What is a balance sheet

A

Shows the value of a business in date and shows what the business owns and oWes

11
Q

What is fixed assets

A

Items a business must keep to trade

12
Q

What are current assets

A

Items that can change with every transaction