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Leavin Cert Business Question

  • 10-11-2013 5:16pm
    #1
    d1234
    Registered Users, Registered Users 2 Posts: 594 ✭✭✭


    What formulas do we need to know for the question on Monitoring Business Finances Using Accounts as in Return on investment ....

    Thanks in advance


Comments

  • #2
    Aspiring
    Registered Users, Registered Users 2 Posts: 2,204 ✭✭✭Aspiring


    You mean the ratios or what? Like debt/equity, acid test, current and net profit margin, etc ratios?

    If so:
    Gross Margin (Gross Profit Percentage) : Gross Profit/Sales x 100
    Net Margin (Net Profit Percentage): Net Profit/Sales x 100
    Return on Investment: Net Profit/Capital Employed x 100
    Current Ratio: Current Assets : Current Liabilities
    Acid Test Ratio (Acid Test) : Current Assets - Closing stock : Current Liabilities
    Gearing/Debt Equity Ratio, can be Percentage or ratio:
    Percentage: Long term debt/(Retained earnings + Share capital) x 100
    Ratio: Long term debt : Retained earnings + Ordinary share capital

    The last one is usually ratio you're asked for. I assume you know the ideals for each but if not just let me know :)


  • #3
    d1234
    Registered Users, Registered Users 2 Posts: 594 ✭✭✭d1234


    Yes, that's what I mean! Thanks so much for posting all that info!


  • #4
    Aspiring
    Registered Users, Registered Users 2 Posts: 2,204 ✭✭✭Aspiring


    No problem, our teacher beats these into us haha :)


  • #5
    examstress
    Registered Users Posts: 206 ✭✭examstress


    Hi guys quick question . I'm in 5th year and thinking about doing business as a extra subject . Would it be hard to take it on and get the honour in the exam without learning the whole book ? I do Economics btw :) Any suggestions would be greatly appreciated :)


  • #6
    6YearStruggle
    Registered Users Posts: 29 ✭6YearStruggle


    examstress wrote: »
    Hi guys quick question . I'm in 5th year and thinking about doing business as a extra subject . Would it be hard to take it on and get the honour in the exam without learning the whole book ? I do Economics btw :) Any suggestions would be greatly appreciated :)

    Hey, I did economics and business for the leaving cert and there's no similarities so neither help with the other! Business is a very picky subject and you absolutely have to stick to what you have seen in books/notes. That said, once you know all that stuff it's very easy to get an honour as you can half predict what'll show up on the paper in June!


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  • #7
    d1234
    Registered Users, Registered Users 2 Posts: 594 ✭✭✭d1234


    Hi, yes as said business can be frustrating that although your answer may be valid, some examiners may not accept it if it's not on the marking scheme. It is a fairly easy subject to get an honour in business if you put the work in but if you're looking for an A, stay away! as it is mainly technique that gets it which is fairly difficult to grip...


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