Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

PoA > PoA formula > Flashcards

PoA formula Flashcards

(54 cards)

Start Studying
1
Q

accounting equation

A

assets = equity +profit/loss + liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

operating profit

A

gross profit - overheads

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

depreciation

A

(cost to purchase - residual value) / estimated useful life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

expanded accounting equation

A

assets (end) = equity (start) + sales revenue - costs of sales + liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

COGS

A

costs of sales = opening inventories + purchases - closing inventories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

gross profit margin

A

gross profit / sales revenue x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

operating profit margin

A

operating profit / sales revenue x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

capital employed

A

equity + non-current liabilities

total assets - current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

ROCE

A

operating profit / (equity + NCL) x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

capital turnover

A

sales / capital

sales / (equity + non current liabilities)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

ROSF

A

profit for the period / (share capital + reserves) x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

gearing ratio

A

non current liabilities / equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

current ratio

A

current assets / current liabilities (:1)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

acid test ratio

A

(current assets - liabilities) /current liabilities (:1)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

interest cover ratio

A

operating profit / interest expense

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Earnings per share (EPS)

A

profit / number of shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Price to earnings ratio (P/E ratio)

A

market price per share / EPS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

dividend yield ratio

A

dividend per share / price per share x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

dividend payout ratio

A

dividends announced for the year / profit for the year x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

measuring profit

A

revenue - total expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

BEP

A

fixed costs / (sales revenue per unit - variable cost per unit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

contribution per unit

Study These Flashcards
A

sales revenue per unit - variable cost per unit

23
Q

contribution margin ratio

Study These Flashcards
A

contribution / sales revenue x 100

24
Q

contribution

Study These Flashcards
A

sales revenue - variable costs

fixed costs + profit

25
volume of activity to achieve target profit
total sales revenue = fixed cost + variable cost + target profit
26
ROCE broken down
(operating profit/sales revenue) x (sales revenue/capital)
27
capital
equity + non current liabilities
28
Average settlement period for trade receivables
average trade receivables / credit sales revenue x 365
29
average inventories turnover period
average inventories held / cost of sales x 365
30
proportion of current assets financed from short term sources
current liabilities / current assets x100
31
variable cost per unit (high low method)
[total cost (highest output) - total cost (lowest output)] / units (highest output) - units (lowest output)]
32
fixed cost (HighLow)
(total cost HO - units HO) x variable cost per unit
33
margin of safety
expected unit sales - break even unit sales
34
dividend per share
EPS x dividend payout ratio
35
break even sales (using % margin of safety)
actual sales x (1 - margin of safety/100)
36
number of units sold (through BEP)
(fixed costs + profit) / contribution per unit
37
achieving a target profit
total sales revenue = fixed cost + total variable cost + target profit
38
break even revenues
break even point x selling price
39
calculate operating profit/loss
[units sold x (selling price PU - variable cost PU)] - fixed costs
40
target quantity
(fixed costs + target profit) / (selling price - variable cost per unit)
41
overhead absorption rate
total overhead costs / total output
42
zero based budgeting
start from scratch every time
43
incremental budget
past activities
44
working capital
current assets - current liabilities
45
overhead recovery rate
total overhead costs / activity level
46
cash receivable budget
cash receivable = opening balance + credit sales - closing balance
47
payback period
cash flow for year one minus investment cost. answer carries out to next year until reach positive number
48
net present value
cash flow x [1/(1+r)^n] r: discounted rate (table) n: number of periods
49
internal rate of return
latest discount rate - (latest NPV / NPV per 1 %)
50
NPV per 1%
difference NPV / difference discount rate
51
opening cash cycle (OCC)
inventories turnover period + trade receivables settlement period - trade payables settlement period
52
weeks OCC
everything - credit everything - payables
53
Margin of safety in percentage
(actual sales - break even sales) / actual sales x100
54
BEP (not involving any division)
total costs = total sales revenue

PoA (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions