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Formula Flashcards

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1
Q

What is the formula for calculating revenue?

A

Revenue = Price x Quantity

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2
Q

What is the formula for calculating total costs?

A

Total Costs = Fixed Costs + Variable Costs

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3
Q

What is the formula for calculating profit?

A

Profit = Total Revenue - Total Costs

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4
Q

What is the formula for calculating gross profit margin?

A

Gross Profit Margin = (Gross Profit / Revenue) x 100%

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5
Q

What is the formula for calculating net profit margin?

A

Net Profit Margin = (Net Profit / Revenue) x 100%

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6
Q

What is the formula for calculating return on capital employed (ROCE)?

A

ROCE = (Operating Profit / Capital Employed) x 100%

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7
Q

What is the formula for calculating current ratio?

A

Current Ratio = Current Assets / Current Liabilities

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8
Q

What is the formula for calculating acid test ratio?

A

Acid Test Ratio = (Current Assets - Inventory) / Current Liabilities

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9
Q

What is the formula for calculating average rate of return (ARR)?

A

ARR = (Average Annual Profit / Initial Investment) x 100%

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10
Q

What is the formula for calculating payback period?

A

Payback Period = Initial Investment / Annual Cash Inflow

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11
Q

What is the formula for calculating economic order quantity (EOQ)?

A

EOQ = √((2 x Demand x Ordering Cost) / Carrying Cost)

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12
Q

What is the formula for calculating break-even point in units?

A

Break-even Point (units) = Fixed Costs / (Selling Price - Variable Costs)

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13
Q

What is the formula for calculating contribution per unit?

A

Contribution per Unit = Selling Price - Variable Costs

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14
Q

What is the formula for calculating average revenue per unit?

A

Average Revenue per Unit = Total Revenue / Quantity Sold

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15
Q

What is the formula for calculating net cash flow?

A

Net Cash Flow = Cash Inflows - Cash Outflows

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16
Q

What is the formula for calculating Earnings Before Interest and Taxes (EBIT)?

A

EBIT = Revenue - Operating Expenses

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17
Q

What is the formula for calculating return on investment (ROI)?

A

ROI = (Net Profit / Investment) x 100%

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18
Q

What is the formula for calculating asset turnover ratio?

A

Asset Turnover Ratio = Revenue / Total Assets

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19
Q

What is the formula for calculating inventory turnover ratio?

A

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

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20
Q

What is the formula for calculating accounts receivable turnover ratio?

A

Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable

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21
Q

What is the formula for calculating accounts payable turnover ratio?

A

Accounts Payable Turnover Ratio = Net Credit Purchases / Average Accounts Payable

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22
Q

What is the formula for calculating working capital?

A

Working Capital = Current Assets - Current Liabilities

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23
Q

What is the formula for calculating operating profit margin?

A

Operating Profit Margin = (Operating Profit / Revenue) x 100%

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24
Q

What is the formula for calculating net present value (NPV)?

A

NPV = Σ(Cash Flows / (1 + r)^t) - Initial Investment

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25
What is the formula for calculating internal rate of return (IRR)?
IRR is the discount rate that makes the NPV of all cash flows from a particular project equal to zero
26
What is the formula for calculating profit?
Profit = Total Revenue - Total Costs
27
True or False: Revenue is the total amount of money a business receives from selling goods or services.
True
28
What is the formula for calculating revenue?
Revenue = Price per unit x Quantity sold
29
What is the formula for calculating total costs?
Total Costs = Fixed Costs + Variable Costs
30
Fill in the blank: The formula for calculating profit is Profit = ______ - Total Costs.
Total Revenue
31
What is the formula for calculating contribution?
Contribution = Selling Price per unit - Variable Cost per unit
32
True or False: Contribution represents the amount that each unit sold contributes towards covering fixed costs.
True
33
What is the formula for calculating breakeven point in units?
Breakeven Point in Units = Fixed Costs / Contribution per unit
34
What is the formula for calculating breakeven revenue?
Breakeven Revenue = Breakeven Point in Units x Selling Price per unit
35
Fill in the blank: The formula for calculating total costs is Total Costs = Fixed Costs + ______ Costs.
Variable
36
What is the formula for calculating margin of safety?
Margin of Safety = Actual Sales - Breakeven Sales
37
True or False: Margin of Safety measures the amount by which actual sales exceed the breakeven sales.
True
38
What is the formula for calculating net profit margin?
Net Profit Margin = (Net Profit / Revenue) x 100
39
What is the formula for calculating return on capital employed (ROCE)?
ROCE = (Net Profit / Capital Employed) x 100
40
Fill in the blank: The formula for calculating net profit margin is Net Profit Margin = (Net Profit / ______) x 100.
Revenue
41
What is the formula for calculating asset turnover ratio?
Asset Turnover Ratio = Revenue / Capital Employed
42
True or False: Asset turnover ratio measures how effectively a business is using its assets to generate revenue.
True
43
What is the formula for calculating inventory turnover ratio?
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
44
What is the formula for calculating current ratio?
Current Ratio = Current Assets / Current Liabilities
45
Fill in the blank: The formula for calculating current ratio is Current Ratio = Current Assets / ______.
Current Liabilities
46
What is the formula for calculating acid test ratio?
Acid Test Ratio = (Current Assets - Inventory) / Current Liabilities
47
True or False: Acid test ratio is a more stringent measure of a company's liquidity than the current ratio.
True
48
What is the formula for calculating gearing ratio?
Gearing Ratio = (Long-term Debt / Equity) x 100
49
What is the formula for calculating interest cover ratio?
Interest Cover Ratio = Operating Profit / Interest Payable
50
What is the formula for calculating profit?
Profit = Total Revenue - Total Costs
51
True or False: Revenue is the total amount of money a business receives from selling goods or services.
True
52
What is the formula for calculating revenue?
Revenue = Price per unit x Quantity sold
53
What is the formula for calculating total costs?
Total Costs = Fixed Costs + Variable Costs
54
Fill in the blank: The formula for calculating profit is Profit = ______ - Total Costs.
Total Revenue
55
What is the formula for calculating contribution?
Contribution = Selling Price per unit - Variable Cost per unit
56
True or False: Contribution represents the amount that each unit sold contributes towards covering fixed costs.
True
57
What is the formula for calculating breakeven point in units?
Breakeven Point in Units = Fixed Costs / Contribution per unit
58
What is the formula for calculating breakeven revenue?
Breakeven Revenue = Breakeven Point in Units x Selling Price per unit
59
Fill in the blank: The formula for calculating total costs is Total Costs = Fixed Costs + ______ Costs.
Variable
60
What is the formula for calculating margin of safety?
Margin of Safety = Actual Sales - Breakeven Sales
61
True or False: Margin of Safety measures the amount by which actual sales exceed the breakeven sales.
True
62
What is the formula for calculating net profit margin?
Net Profit Margin = (Net Profit / Revenue) x 100
63
What is the formula for calculating return on capital employed (ROCE)?
ROCE = (Net Profit / Capital Employed) x 100
64
Fill in the blank: The formula for calculating net profit margin is Net Profit Margin = (Net Profit / ______) x 100.
Revenue
65
What is the formula for calculating asset turnover ratio?
Asset Turnover Ratio = Revenue / Capital Employed
66
True or False: Asset turnover ratio measures how effectively a business is using its assets to generate revenue.
True
67
What is the formula for calculating inventory turnover ratio?
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
68
What is the formula for calculating current ratio?
Current Ratio = Current Assets / Current Liabilities
69
Fill in the blank: The formula for calculating current ratio is Current Ratio = Current Assets / ______.
Current Liabilities
70
What is the formula for calculating acid test ratio?
Acid Test Ratio = (Current Assets - Inventory) / Current Liabilities
71
True or False: Acid test ratio is a more stringent measure of a company's liquidity than the current ratio.
True
72
What is the formula for calculating gearing ratio?
Gearing Ratio = (Long-term Debt / Equity) x 100
73
What is the formula for calculating interest cover ratio?
Interest Cover Ratio = Operating Profit / Interest Payable

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