Business Formula Flashcards
(20 cards)
What is the formula for Revenue?
Selling Price × Quantity Sold
What is the formula for Gross profit?
Revenue – Cost of Sales
What is the formula for Net profit
Gross Profit – Expenses
Break even points
Fixed Costs ÷ (Selling Price – Variable Cost per Unit)
Total contributions
Sales Revenue – Total Variable Costs
Contribution per unit
Selling Price – Variable Cost per Unit
Margin of safety
Actual Sales – Break-even Sales
What is the formula for Gross Profit Margin
(Gross Profit ÷ Revenue) × 100
What is the formula for Net Profit Margin (%m
A: Net Profit Margin = (Net Profit ÷ Revenue) × 100
Types of capital income
Loan
Mortgage
Debenturnes
Owner capital
Shares
Types of revenue
Cash sales
Credit sales
Rent received
Commission
Interest received
Discount received
Types of tangibile assets
Machinery
Equipment
Vehicles
Inventory
Property
Types of intangible assets
Patens
Trade mark
Copyrights
Franchise right
Logo
Brand name
Types of capital expenditure
Brand name
Goodwill
Buildings
Machinery and equipment
Trade marks
Vehicles
Revenue expenditure
Wages and salary
Rent
Marketing
Travel expenses
Repairs
Example of external source
Owner capital
Loan
Crown funding
Example of inflows
Cash sales
Credit sales
Loans
Capital Introduced
Sales of assets
Bank interest received
Example of outflows
Cash purchases
Credit purchases
Rent
Wages
Salaries
Utilities
Purchase of assets
Vat
Bank interest paid
Loan repayment
Insurance
Example of current assets
Long term investment
Land
Property
Plant and equipment
Non current assists
Cash and cash equivalents
Account receivedable
Raw materials
Marketable security
Prepaid expense
