Interpretation of Accounts Formulas

Description

Leaving Certificate Accounting Flashcards on Interpretation of Accounts Formulas, created by ciara.downes on 24/01/2015.
ciara.downes
Flashcards by ciara.downes, updated more than 1 year ago
ciara.downes
Created by ciara.downes about 9 years ago
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Resource summary

Question Answer
Return on Capital Employed Net Profit + Debenture Interest Capital Employed
Return on Equity Funds Net Profit - Preference Dividends Ordinary Share Capital + Reserves
Stock Turnover Cost of Sales Average Stock
Average Stock Opening Stock + Closing Stock 2
Period of Credit given to Debtors Debtors x 365/12 Credit Sales
Period of Credit Received from Creditors Creditors x 12/365 Credit Purchases
Gearing % Preference Share Capital + Debentures Capital Employed
Interest Cover Net Profit + Interest Interest
Current Ratio CA : CL 1:1
Acid Test Quick Ratio Liquid Asset Ratio CA - Stock : CL 1:1
Dividend Per Share DPS Ordinary Dividends No. of Ordinary Shares
Dividend Yield DPS MPS
Earnings Per Share EPS Net Profit - Preference Dividends No. of Ordinary Shares
Price Earnings Ratio MPS EPS
Period to Recover MPS EPS (earnings) /DPS (payout)
Net Profit % Net Profit Sales
Dividend Payout % DPS EPS
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