Theme 2 equations

Question 1

Net cash flow

Answer 1

Cash inflows - cash outflows

Question 2

Opening balance

Answer 2

Closing balance from previous month

Question 3

Closing balance

Answer 3

Opening balance + net cash flow

Question 4

Revenue

Answer 4

Quantity sold x selling price

Question 5

Total costs

Answer 5

Fixed costs + variable costs

Question 6

Profit (3)

Answer 6

Revenue - total costs
Contribution - fixed costs
Margin of safety x contribution per unit

Question 7

Total variable costs

Answer 7

Variable costs per unit x quantity sold

Question 8

Average total costs

Answer 8

Total costs / quantity produced

Question 9

Sales volume

Answer 9

Sales revenue / selling price

Question 10

Sales revenue

Answer 10

Sales volume x selling price

Question 11

Variable costs per unit

Answer 11

Total variable costs / quantity produced

Question 12

Contribution per unit

Answer 12

Selling price - variable cost per unit

Question 13

Break even output

Answer 13

Fixed costs / selling price- variable costs

Question 14

Total contribution

Answer 14

Contribution per unit x quantity sold

Question 15

Margin of safety

Answer 15

Actual output - break even output

Question 16

Variance

Answer 16

Actual figure - budgeted figure

Question 17

Profit margin

Answer 17

Profit / revenue x 100

Question 18

Gross profit

Answer 18

Revenue - cost of sales

Question 19

Operating profit

Answer 19

Revenue - cost of sales and operating expenses

Question 20

Net profit/ profit for the year

Answer 20

Revenue - cost of sales, operating expenses and net interest

Question 21

Current ratio

Answer 21

Current assets / current liabilities : 1

Question 22

Acid test ratio

Answer 22

Current assets- inventory / current liabilities : 1

Question 23

Productivity per input in time period

Answer 23

Total output in time period / number of inputs (employees)

Question 24

Capacity utilisation (%)

Answer 24

Actual output / maximum possible output x 100