3.5 Accounts analysis IGCSE

Front

Adjustments

Back

Includes adjustments for the profits made on the disposal of assets.

Front

Acid test ratio

Back

Similar to the current ratio but excludes stocks from current assets (sometimes called the quick ratio).

Front

Current ratio

Back

Assesses the firm's liquidity by dividing current liabilities into current assets.

Front

Gross profit margin (or mark-up)

Back

Gross profit expressed as a percentage of turnover.

Front

Operating profit

Back

Gross profit less expenses.

Front

Operating profit margin

Back

Operating profit expressed as a percentage of turnover.

Front

Retained profit

Back

Profit that is not returned to the owners or shareholders of a business.