Financial Formulas Quiz

How is Revenue calculated?

• Fixed costs + Variable costs

• Selling price x Units sold

• Revenue - Total cost

• Cash Inflows - Cash Outflows

What is the formula for Break Even (Units)?

• Fixed Costs / (Selling Price - Variable costs per unit)

• Selling price x Units sold

• Revenue - Total cost

• Cash Inflows - Cash Outflows

How is Opening Balance determined?

• Closing Balance from previous month

• Fixed costs + Variable costs

• Selling price x Units sold

• Revenue - Total cost

Which formula is used to calculate the Break Even point?

• Fixed Costs / (Selling Price - Variable costs per unit)

• Cash Inflows - Cash Outflows

• Opening Balance + Net cash flow

• Revenue - Total cost

What does the formula 'Revenue = Selling price x Units sold' calculate?

• Revenue

• Total Cost

• Profit/Loss

• Net cash flow

What is the purpose of calculating Percentage change?

• To determine the rate of change between two figures

• To calculate total costs

• To find net cash flow

• To determine break-even point

Which section does the formula 'Net cash flow = Cash Inflows – Cash Outflows' belong to?

• Cash flow forecasting

• General

• Break-even

• Revenue calculation

What does the formula 'Closing Balance = Opening Balance + Net cash flow' help determine?

• The financial position at the end of a period

• The break-even point

• The total cost

• The revenue

How do you calculate Net Profit Margin?

• Net Profit/Revenue x 100

• Gross Profit/Revenue x 100

• Revenue/Net Profit x 100

• Expenses/Net Profit x 100

What is the first step in calculating the Average Rate of Return?

• Work out Profit

• Work out Revenue

• Work out Expenses

• Work out Cost of Sales