IB BM UNIT 3 finance

Front

Measures the average number of days a firm takes to pay creditors

Back

Creditor days ratio

Front

? = loan capital divided by capital employed X 100
It measures the extent capital employed by a firm is financed from loan capital

Back

Gearing ratio

Front

This is an intangible asset. It is a recognizable symbol, word, phrase or design.

Back

Trademark

Front

Sales revenue = 950, Dividends = 50, Expenses = 300, Interest = 10, Gross profit = 650. What is Cost of good sold?

Back

300

Front

What is money spent on the day-to-day running of a business, including examples like rent, wages, raw materials, insurance, and fuel?

Back

Revenue expenditure

Front

This measures the difference between the break-even level of output and actual (current) level of output in a business

Back

Margin of safety

Front

This final account shows the records of income and expenditure flows of a business over a given time period.

Back

Profit and loss account

Front

_________________ ratios measure the ability of a business to pay off its short term debt obligations.

Back

Liquidity

Front

What are the quantitative techniques used in evaluating the viability or attractiveness of an investment proposal?

Back

Investment Appraisal

Front

This technique looks at how long a business will take to recover its principal investment or initial cash outlay from its net cash flows.

Back

Payback period