finance revision edexcel a level business

The gross profit ratio formula is

• operating profit / expenses x 100

• gross profit / revenue

• gross profit / revenue x 100

• gross profit / cost of sales x 100

Which ratio below looks at liquidity ?

• gross profit margin

• net profit margin

• operating profit margin

• acid test ratio

In a statement of consolidated income, Revenue - Cost of Sales =

• operating profit

• net profit (profit for the year)

• gross profit

• expenses

In a statement of financial position (balance sheet) which of the following are current assets ?

• buildings, property

• machinery, equipment

• stock, trade receivables (debtors)

• vehicles, land

Another term for stock =

• inventor

• inventory

• investor

• inverter

Price = £12 per unit, Sales = 500 units and the total variable costs are £1500

• unit contribution = £12

• unit contribution = £9

• unit contribution = £6

• unit contribution = £10.50

Which of the following are fixed costs ?

• raw materials, labour wages

• packaging, deliveries

• insurance, loan interest

On a breakeven graph , which line starts at zero (bottom left corner of graph)

• fixed costs

• total revenue

• total costs

Fixed costs = £ 3600 , unit contribution = £ 6, therefore breakeven =

• 21600 units

• 60 units

• 600 units

• 6000 units

Which line is missing from the breakeven graph ?

• fixed costs

• total costs

• total revenue