LEC Formulae

What is the formula for calculating Total Revenue?

• Total Fixed Costs + Total Variable Costs

• Output/Quantity Sold x Selling Price per Unit

• Fixed Costs/Variable Costs

• Selling Price per Unit - Variable Cost per Unit

How do you calculate Total Costs?

• Total Fixed Costs + Total Variable Costs

• Total Revenue - Total Costs

• Fixed Costs/Variable Costs

• Selling Price per Unit - Variable Cost per Unit

What is the formula for Gross Profit?

• Revenue Turnover - Cost of Goods Sold

• Opening Inventory + Purchases - Closing Inventories

• Total Revenue - Total Costs

• Contribution per Unit x Number of Units Sold

Which of the following is a characteristic of Prepayments?

• Subtract from Expenses

• Total Revenue - Total Costs

• Contribution per Unit x Number of Units Sold

• Fixed Costs/Variable Costs

What is the formula for calculating net current assets?

• Current Assets + Current Liabilities

• Current Assets - Current Liabilities

• Non-Current Assets - Current Liabilities

• Total Assets - Total Liabilities

What is the formula for the current ratio?

• Current Assets / Current Liabilities

• Current Assets - Inventory / Current Liabilities

• Average Stock / Cost of Goods Sold

• Non-Current Assets / Current Liabilities

What is the average ratio for the liquid capital ratio?

• 1:1

• 1.5:1

• 2:1

• 0.5:1

What is considered a current liability on the statement of financial position?

• Depreciation

• Accruals

• Inventory

• Non-Current Assets

What is the formula for net assets?

• Current Assets - Current Liabilities

• (Non-Current Assets + Current Assets) - (Current Liabilities + Non-Current Liabilities)

• Total Assets - Total Liabilities

• Capital + Retained Profit - Drawings

What does the statement of financial position formulae include?

• Depreciation Methods

• Ratio Analysis

• Net Current Assets

• Inventory Turnover