Unit 3.4 - 3.5 Quiz Practice

This is also referred to as "Total Sales"

• Gross Profit

• Revenue

• Profit

Which of the following sources of finance are likely to appear in Current Liabilities?

• Trade credit

• Overdraft

• Mortgages

• Bonds

Capital Expenditures are

• money spent to acquire fixed assets for a business, such as machinery, land or buildings.

• money spent on the day-to-day running of the business, such as wages or insurance.

• an external source of finance from a financial institution

• when a business sells off its unwanted or unused assets

Which of the following are internal sources of finance?

• Loans

• Sale of Assets

• Retained Profit

• Overdrafts

What is retained profit?

• profit that remains after a business has paid corporation tax to the government and dividends to shareholders

• money raised from the sale of share of a limited company (when a business "goes public")

• a source of finance for sole traders that comes mostly from their own personal savings

• the portion of profit that the government takes from a business's revenue

"Debtors" would be categorized in this section of the balance sheet.

• Current Assets

• Current Liabilities

• Long-term loans

Net Profit is often referred to as the "bottom line" on which financial statement

• Profit & Loss Account

• Balance Sheet

• Cash Flow statement

This is a sum of money, a portion of profits, paid to shareholders decided by the board of directors of a company.

• Dividends

• Retained Profit

• Commission

• Interest

This source of finance allows a business to "buy now and pay later." The seller usually allows between 30-60 days for payment.

• Grant

• Overdrafts

• Trade Credit

• Subisidies

Businesses can sell they unused assets, such as selling an old building or computer equipment, as a way to raise capital. Choose the correct source AND category of finance.

• Sale of Assets - Internal

• Share Capital - Internal

• Sale of Assets - External

• Share Capital - External