BTEC Business Unit 3

The trade payables days shows

• How many days it takes a business to pay its rent

• How many days a business’s credit customers take to pay their invoices

• How many days a business takes to pay its credit suppliers

• How many days it takes suppliers to deliver inventories to a business

Which of the following sources of business finance does NOT incur interest?

• Payday loan

• Mortage

• Debenture

• Owners capital

Which of the following would

NOT appear on the Statement of Comprehensive Income?

• Wages

• Bank interest paid

• Depreciation

• Purchases of non-current assets

Which of the following would NOT be found on a Statement of Financial Position?

• Trade payables

• Cash

• Interest paid

• Capital

Which of the following is a formula for calculating the total contribution?

• Total revenue – fixed costs

• Total revenue - total costs

• Total revenue - variable costs

• Fixed costs - profit

Which one of these actions

would be MOST likely to increase the margin of safety?

• Higher sales and higher break-even point

• Higher sales and lower break-even point

• Lower sales and higher break-even point

• Lower sales and lower break-even point

The Return on Capital Employed of a sole trader can be improved by:

• Increasing Net Profit

• Decreasing payment terms to credit customers

• Increasing capital employed

• Decreasing dividends paid to shareholders

Which of the following is a drawback of internal sources finance?

• They do not belong to the owner

• They incur interest if used

• They may not be sufficient for the business’s needs

• They can result in poor financial performance

Which of the following is NOT

an example of capital income?

• Loan

• Mortgage

• Debentures

• Commission

A dance school has to teach 240 lessons a week to break even. If the weekly margin of safety is 60 lessons, what is the maximum % that weekly number of lessons can fall by to avoid making a loss?

• 10%

• 20%

• 30%

• 40%