Equations Flashcards by Mark Kabochi | Brainscape

Q

What is the Assets equation?

A

assets = liability + owner’s equity

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Q

What is the net income equation?

A

net income = revenues – expenses

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Q

What is the break even point equation?

A

Break even = fixed costs - variable cost per unit

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Q

What is the cash ratio equation?

A

Cash ratio = cash/current liabilities

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Q

What is the profit margin equation?

A

profit margin = net income / sales

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Q

What is the net profit equation?

A

Gross Profit - total Expenses

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Q

What is the gross profit equation?

A

sales revenue - costs of goods sold

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Q

What is the net assets equation?

A

Working capital (net current asset) + fixed assets

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Q

What is the working capital equation?

A

current assets - current liabilities

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Q

What is the capital employed equation?

A

shareholder funds + long term liabilities

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Q

What is the current asset equation?

A

Cash + stock + debtors

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Q

What is the profit equation?

A

Revenue - costs

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Q

What is the revenue equation?

A

Revenue = Units Sold x Sales Price.

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