BUSINESS PAPER 2 - CALCULATIONS
EDEXCEL A LEVEL QUESTIONS WITH
CORRECT ANSWERS
Average Costs Per Unit -Lcorrect answer-Total Production Costs ÷ Total Output (Units)
Net Present Value - correct answer-Cash flow x Discount Factor (Predicted rate of Inflation)
Average Rate of Return - correct answer-
Net Return (Profit per annum) ÷ Capital Outlay Cost (start cost) x 100
PaybackLPeriod - correct answer-Costs of Project (Investment) ÷LNet Cash Flow Generated x 12
Revenue - correct answer-Selling Price x Units Sold
Gross Profit - correct answer-Revenue - Cost of Sales
OperatingLProfit - correctLanswer-Gross Profit - Expenditure
Profit After Tax - correct answer-Operating Profit - Financial costs/Taxes
Gearing - correct answer-Non-current LiabilitiesL÷ (Total Equity + Non-current Liabilities) x 100
Acid Test Ratio - correct answer-(CurrentLAssets -LInventories) ÷LCurrentLLiabilities
Current Ratio - correctLanswer-Current AssetsL÷ Current Liabilities
Gross Profit Margin - correct answer-Gross ProfitL÷ Revenue xL100
EDEXCEL A LEVEL QUESTIONS WITH
CORRECT ANSWERS
Average Costs Per Unit -Lcorrect answer-Total Production Costs ÷ Total Output (Units)
Net Present Value - correct answer-Cash flow x Discount Factor (Predicted rate of Inflation)
Average Rate of Return - correct answer-
Net Return (Profit per annum) ÷ Capital Outlay Cost (start cost) x 100
PaybackLPeriod - correct answer-Costs of Project (Investment) ÷LNet Cash Flow Generated x 12
Revenue - correct answer-Selling Price x Units Sold
Gross Profit - correct answer-Revenue - Cost of Sales
OperatingLProfit - correctLanswer-Gross Profit - Expenditure
Profit After Tax - correct answer-Operating Profit - Financial costs/Taxes
Gearing - correct answer-Non-current LiabilitiesL÷ (Total Equity + Non-current Liabilities) x 100
Acid Test Ratio - correct answer-(CurrentLAssets -LInventories) ÷LCurrentLLiabilities
Current Ratio - correctLanswer-Current AssetsL÷ Current Liabilities
Gross Profit Margin - correct answer-Gross ProfitL÷ Revenue xL100