Ch 35 - Key terms

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  • Created by: a f.v
  • Created on: 10-12-14 11:44
Acid test ratio
Similar to the current ratio but excludes stocks from current assets. Sometimes called the quick ratio
1 of 6
Current ratio
Assesses the firm's liquidity by diving current liabilities into current assets
2 of 6
Gross profit margin or mark-up
Gross profit expressed as a percentage of turnover
3 of 6
Net profit margin
Net profit expressed as a percentage of turnover
4 of 6
Ratio analysis
A numerical approach to investigating accounts by comparing two related figures
5 of 6
Return on capital employed (ROCE)
The profit of a business as a percentage of the total amount of money used to generate it
6 of 6

Other cards in this set

Card 2

Front

Assesses the firm's liquidity by diving current liabilities into current assets

Back

Current ratio

Card 3

Front

Gross profit expressed as a percentage of turnover

Back

Preview of the back of card 3

Card 4

Front

Net profit expressed as a percentage of turnover

Back

Preview of the back of card 4

Card 5

Front

A numerical approach to investigating accounts by comparing two related figures

Back

Preview of the back of card 5
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