1) total costs =  a) fixed costs + variable costs b) number of sales x price per unit c) revenue - expenditure d) gross profit - expenditure 2) revenue - a) revenue - expenditure b) fixed costs + variable costs c) number of sales x price per unit d) revenue - costs of sales 3) profit = a) number of sales x price per unit b) revenue - expenditure c) revenue - cost of sales d) grross profit - expenditure 4) break-even = a) revenue - expenditure b) gross profit x 100 c) current assets - inventory / current liabilities d) fixed costs / selling price per unit - variable cost per unit 5) gross profit = a) gross profit - expenditure b) gross profit / ? x 100 c) revenue - costs of sales d) net profit / ? x 100 6) net profit = a) gross profit - expenditure b) gross profit / ? x 100 c) revenue - costs of sales d) current assets - inventory 7) gross profit margin = a) revenue - cost of sales b) gross profit / ? x 100 c) gross profit - expenditure d) number of sales x price per unit 8) net profit margin = a) revenue - expenditure b) gross profit - expenditure c) revenue - cost of sales d) net profit / ? x 100 9) working capital = a) current assets - current liabilities b) current assets / ? c) current assets - inventory / current liability d) revenue - expenditure 10) current ratio = a) current assets - inventory / current liability b) current assets - current liabilities c) current assets / ? d) gross profit / ? x 100 11) liquid ratio = a) current assets / ? b) current assets - current liabilities c) net profit / ? d) current assets - inventory / current liability

Unit 2 Lets formulate 1

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