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