BTEC ENTERPRISE - MOCK TEST 1

What assumption does this statement say "Break even is 54 units"?

• if we sell 55 we aren't making a profit

• if we sell 54 we begin to make a profit

• if we sell 55 we begin to make a profit

• if we sell 54 we are not yet at break even point

When a business has made enough money to pay its costs and begin to make a profit, it has reached its

• break-even point
• variable-cost margin
• fixed cost
• selling price

Some business costs are classified as fixed costs because they

• must be paid within a set time
• don't change when sales go up or down
• are unpredictable and must be estimated
• cost all businesses the same amount

A business that does not reach break-even will

• go bankrupt
• have profit and loss
• lose money
• need to relocate

One of the main purposes for calculating break-even is to help the business to

• determine stock value
• prepare an income statement
• forecast sales
• set selling prices

Which one of the following would be included in the calculation of total costs?

• Selling price

• Rent of premises

• Revenue

• Refund to a customer

Where does the main cash inflow for most businesses come from?

• Customers paying for products
• Interest received on loans
  
• Interest payments on a bank overdraft

What is net cash flow?

• The difference between revenue and cost
• The difference between money in and money out
• The difference between assets and liabilities
  

If the opening balance is £5,000, total receipts are £4,000 and the closing balance is £3,000 then total payments are:

• £4,000
• £5,000
• £6,000

Which of the following is an example of a cash in-flow for a business?

• payment to suppliers
• paying back a loan to a bank
• payment from debtors
• purchase of fixed assets