Finance for Business

Which of these figures will you see on a cash flow forecast?

• Inflows and Outflows
• Revenue and profit
• Cost of sales
• Staff wages

Which of these is a type of expenditure?

• Sales revenue
• Rent
• Profit
• Bank interest

How do you calculate profit? 

• revenue - expenditure
• revenue + expenditure
• unit cost x variable cost
• sales + profit

What happens to the Margin of Safety if sales increases?

• The margin of sales will increase
• The margin of sales will decrease
• The margin of sales will stay the same

How do you calculate gross profit?

• revenue - cost of sales
• expenditure + fixed costs
• net profit + variable costs
• revenue + cost of sales

How do you calculate net profit?

• gross profit - expenditure
• gross profit + expenditure
• revenue - cost of sales
• revenue + cost of sales

What is a fixed asset?

• Items that a business must keep to trade e.g. a computer
• Items that must be paid back in a year
• Stock that can be sold
• Retained profits

Is cash in the bank a fixed asset or current asset?

• Fixed asset
• Current asset

How can a business increase profits?

• By increasing income
• By reducing income
• By increasing expenditure

Who of these would be interested in looking at a financial statement?

• Shareholders of the company
• Suppliers
• HMRC
• All of these people