Random Flashcards
(6 cards)
1
Q
What makes up capital employed?
A
Debt + Equity
2
Q
Different types of profit on profit or loss statement
A
Gross Profit
Operating Profit (PBIT)
Net Profit
Profit for the year
3
Q
What 5 items do you need to calculate WACC (weighted average cost of capital)?
A
Weight: weight of equity + weight of debt
Cost: cost of equity + cost of debt
Tax rate
4
Q
When is a statement of financial position prepared?
A
At the end of the year (as at 31 December 2024)
5
Q
When would you use the straight line depreciation method?
A
If you expect economic benefit from the machine to be the steady/ same every year
6
Q
When would you use the reducing balance depreciation method?
A
If expect to get more economic benefit first year and less and less every year
