BTEC Business Formulas Exam 27 Questions with Answers
Net Cash Flow - CORRECT ANSWER Total inflows - total outflows
Closing balance - CORRECT
... [Show More] ANSWER Opening balance + net cash flow
Sales revenue - CORRECT ANSWER price x quantity sold
Variable costs - CORRECT ANSWER cost per unit x quantity made
Total costs - CORRECT ANSWER fixed costs + variable costs
Profit - CORRECT ANSWER sales revenue - total costs
Break even point - CORRECT ANSWER Fixed costs / contribution per unit
Contribution per unit - CORRECT ANSWER Selling price - variable cost per unit
Total contribution - CORRECT ANSWER Sales revenue - total variable costs
Margin of Safety - CORRECT ANSWER Actual sales - break even level of output
Costs of goods sold - CORRECT ANSWER Opening inventory + purchases - closing inventory
Gross profit - CORRECT ANSWER sales turnover - cost of goods sold
Net profit - CORRECT ANSWER gross profit - expenses + other revenue income
straight line depreciation - CORRECT ANSWER historic value - residual value / expected life
Working Capital - CORRECT ANSWER current assets - current liabilities
Net assets - CORRECT ANSWER fixed assets + current assets - (current liabilities + long term liabilities)
Capital employed - CORRECT ANSWER owners/shareholders capital + retained profit - drawings
Gross profit margin - CORRECT ANSWER Gross profit/sales revenue x 100
Mark-up - CORRECT ANSWER Gross profit / cost of sales x 100
Net profit margin - CORRECT ANSWER net profit/revenue x 100
return on capital employed - CORRECT ANSWER Net profit / capital employed x 100
Current ratio - CORRECT ANSWER current assets / current liabilities
Liquidity ratio - CORRECT ANSWER current assets - inventory / current liabilities
Trade receivable days - CORRECT ANSWER Trade receivables / credit sales x 365
Trade payable days - CORRECT ANSWER Trade payables / credit purchases x 365
Inventory turnover - CORRECT ANSWER Average inventory / cost of sales x 365
Average turnover - CORRECT ANSWER opening inventory + closing inventory / 2 [Show Less]