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Flashcards in Definitions Deck (20):
1

Net cash flow

Cash inflows- cash outflows

2

Closing balance

Opening balance + net cash flow

3

Sales volume

Sales revenue / selling price per unit

4

Sales revenue

Selling price x quantity sold

5

Total costs

Fixed costs + variable costs

6

Fixed costs

Total costs - variable costs

7

Contribution per unit

Selling price - variable costs per unit

8

Break even point

Fixed costs / contribution per unit

9

Margin of safety

Actual output - break even output

10

Variance analysis

Budgeted figure - actual figure

11

Gross profit

Sales revenue - cost of sales

12

Cost of sales

Opening stock + purchases - closing stock

13

Operating profit

Gross profit - expenses

14

Profit of the year

Operating profit - interest & tax

15

Gross profit margin

Gross profit / sales x 100

16

Operating profit margin

Operating profit/sales x 100

17

Profit for the year Margin

Profit for the year/ sales revenue x 100

18

Current ratio

Current assets / current liabilities

19

Acid test ratio

Liquid asserts/ current liabilities

20

Working capital

Current assets- current liabilities