Balance Sheets and current ratio Flashcards Preview

Business Unit 2 > Balance Sheets and current ratio > Flashcards

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

Net current asset equation

Current assets-current liabilities

2

Assets equation

Liabilities+ capital

3

Acid ration equation

Current assets-stock/current liabilities

4

What is acid ratio

When the stock is taken away from current assets

5

What is the current ratio

Difference of current assets to current liabilities

6

What is current ratio equation

Current assets/ current liabilities

7

What is the gross profit margin

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

8

What is net profit margin

Percentage of revenue left after all expenses hVe been deducted

9

What is the net current assets equation

Current assets-current liabilities

10

What is a balance sheet

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

11

What is fixed assets

Items a business must keep to trade

12

What are current assets

Items that can change with every transaction