ACCA FA Formulas questions with
complete solutions
Return on capital employed (ROCE) - ANS ✔✔Profit before tax / capital employed
Capital employed - ANS ✔✔Total assets - current liabilities (TALCL) OR NCL + Equity
Net Profit Margin Ratio - ANS ✔✔Net profit / sales x 100
Gross Profit Margin Ratio - ANS ✔✔(sales-cost of sales) /sales x 100
Asset Turnover - ANS ✔✔Sales / Cap Employed
Current Ratio Formula - ANS ✔✔Current assets / current liabilities
Quick Ratio (Acid Test) - ANS ✔✔Current assets - inventory / current liabilities
Receivables period - ANS ✔✔(Average Receivables / credit Revenue) x 100
Inventory period - ANS ✔✔(average finished goods/ COS) x 365 days
Payables period - ANS ✔✔(average payables / credit purchases) x 365 days
Gearing - ANS ✔✔Long term debt / (Equity + Long term debt)
complete solutions
Return on capital employed (ROCE) - ANS ✔✔Profit before tax / capital employed
Capital employed - ANS ✔✔Total assets - current liabilities (TALCL) OR NCL + Equity
Net Profit Margin Ratio - ANS ✔✔Net profit / sales x 100
Gross Profit Margin Ratio - ANS ✔✔(sales-cost of sales) /sales x 100
Asset Turnover - ANS ✔✔Sales / Cap Employed
Current Ratio Formula - ANS ✔✔Current assets / current liabilities
Quick Ratio (Acid Test) - ANS ✔✔Current assets - inventory / current liabilities
Receivables period - ANS ✔✔(Average Receivables / credit Revenue) x 100
Inventory period - ANS ✔✔(average finished goods/ COS) x 365 days
Payables period - ANS ✔✔(average payables / credit purchases) x 365 days
Gearing - ANS ✔✔Long term debt / (Equity + Long term debt)