Paper 2 Flashcards
(9 cards)
1
Q
Closing balance
A
Opening balance + net cash flow
2
Q
Gross profit
A
Sales revenue - costs of sales
3
Q
Gross profit margin
A
Gross profit
—————— X 100
Sales revenue
4
Q
Net profit
A
Gross profit - other operating expenses and interest
5
Q
Net profit margin
A
Net profit
——- X 100
Sales revenue
6
Q
ARR %
A
Average annual profit (total number of years/ total profit)
—————————————X100
Cost of investment
7
Q
Total costs
A
Fixed + variable
8
Q
Break even
A
Fixed costs
————————————
Selling price - variable costs per unit
9
Q
Margin of safety
A
Actual sales - break even sales
