Revision
View linked note
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/21
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
22 Terms
Closing Equity Formula
Opening equity + capital contribution + net profit – dividends.
Closing Inventory Formula
Opening Inventory + cash purchase of inventory + credit purchase of inventory – cost of sales.
Closing Trade Receivables Formula
Opening trade receivables + credit sales – collection from customer – bad debt write-off.
Closing Trade Payables Formula
Opening trade payables + credit purchase – payment to supplier.
Closing Prepaid Expense Formula
Opening prepaid expense + cash payment – incurred expense.
Closing Accrued Expense Formula
Opening accrued expense + incurred expense - cash payment.
Gross Profit Margin Formula
Gross profit margin = Revenue - Cost of Goods Sold.
Operating Profit Margin Formula
Operating Profit Margin = Operating income / Revenue.
Net Profit Margin Formula
Net profit Margin = Net profit / Total Revenue * 100.
Return on Capital Employed Formula
Return on capital employed = Operating profit / Capital Employed.
Return on Assets Formula
Return on asset = Net income / Total assets.
Return on Equity Formula
Return on equity = Net income / Equity.
Average Inventory Days Formula
Average inventory days = 365 * (Average inventory / COGS).
Average Trade Receivables Days Formula
Average trade receivables days = 365 * (Average trade receivables / Revenue).
Average Trade Payables Days Formula
Average trade payables days = Average trade payables / Credit purchases * 365.
Net Asset Turnover Formula
Net asset turnover = sales revenue / Capital employed.
Asset Turnover Formula
Asset turnover = sales revenue / total assets.
Capital Employed Formula
Capital employed = Total assets - Current Liabilities.
Non-Current Asset Turnover Formula
Non-Current asset turnover = Sales revenue / total assets.
Current Ratio Formula
Current Ratio = Current assets / current Liabilities.
Acid Test Ratio Formula
Acid test ratio = (current assets - inventories) / Current Liabilities.
Operating Cash Cycle Formula
Operating cash cycle = Inventory days + Trade receivable days - Trade payable days.
