Costs and terminology

What is a credit note used for?

• To charge the consumer more.

• To correct an error on a customer account

• To show proof of a purchase.

• To provide evidence of an 'entrepreneur's promise'.

If somebody owes money to your business, they are a _____

• debtor.

• creditor.

• supplier.

• stakeholder.

If your enterprise owes money to somebody else, they are a ____

• consumer.

• shareholder.

• trade debtor.

• trade creditor.

What is the formula to calculate sales revenue?

• Gross profit - Cost of sales

• Cost per unit - Price per unit

• Price per unit X Number of units sold

• Fixed costs + Variable costs

What does 'B2C' market stand for?

• Business to Consumer

• Business to Captain

• Business to Cost

• Business to Calculation

What does 'B2B' market stand for?

• Business to Border

• Business to Business

• Business to Break Even

• Business to Boardroom

What is the term used to describe debts that need to be paid off in the short term?

• Trade debtors

• Start up costs

• Current assets

• Current liabilities

Which one of the following is a cash inflow?

• Raw materials

• Staff salaries

• Sales revenue

• Rent payable

Which one of the following is a cash inflow?

• Corporation tax due on profits

• Loan interest payable

• Bank loan received

• Fuel costs

Which one of the following is a cash outflow?

• Bank Loan received

• Sales revenue

• Staff salaries

• Turnover