Accounting

Question 1

Net profit

Answer 1

Gross profit - expenses

Question 2

Gross profit

Answer 2

Sales - cost of sales

Question 3

Gross margin

Answer 3

Gross profit / sales x100

Ideal: as high as possible

Question 4

Net margin

Answer 4

Net profit / sales x 100

Ideal: as high as possible

Question 5

Return on capital employed

Answer 5

Net profit / capital employed x 100

Ideal : greater than return on bank account

Question 6

Current ratio

Answer 6

Current assets : current liabilities

Ideal: 2:1

Question 7

Quick ratio

Answer 7

Current assets - closing stock : current liabilities

Ideal : 1:1

Question 8

Debt/ equity ratio

Answer 8

Debt capital / equity capital
Ideal : 50% is neutral
>50% high
<50% low

Question 9

BEP in units

Answer 9

Fixed costs/selling price per unit - variable cost per unit

Question 10

BEP in €

Answer 10

BEP in units x selling price