The Profit Equation is: Revenues – Expenses = Profit R(u)-V(u)-F= Profit Revenue-Variable Costs-Fixed Costs=Profit All of the above
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Net Cash Flow = Cash Inflows - Cash Outflows
Closing Cash Balance = Amount of cash that the business is expected to have at the end of each month
Opening Balance = Amount of money a business has at the beginning of the month
Fixed Costs = Costs that do not change with the level of output
Variable Costs = Costs that change with the level of output
Total Costs = Variable Costs + Fixed Costs
Total Revenue = Price x Quantity Sold
Profit = Total Revenue - Total Costs
Break Even Point = Total Costs = Total Revenue
Gross Profit = Sales Revenue - Cost of Sales
Net Profit = Total Costs - Total Revenue
Operating Profit = Gross Profit - Expenses
Total Assets = Liabilities + Assets
Capital = Finance provided by the owners
Non-Current Assets = Assets that last more than one year
Current Assets = Assets likely to be changed into cash within a year
Trade Receivables = Amount of money owed to a business
Current Liabilities = Debts repaid within a year
Working Capital = Current Assets - Current Liabilities
Net Assets = Total Assets - Total Liabilities
Gross Profit Margin = Gross Profit/Revenue x 100
Operating Profit Margin = Operating Profit/Revenue x 100
Markup = Profit Per Item/Cost Per Item x 100
Current Ratio = Current Assets/Current Liabilities
Acid Test Ratio = Current Assets - Inventory/Current Liabilities
ROCE = Operating Profit/Capital Employed x 100