Finance & Accounts

Money spent to acquire items in a business that will last for more than a year is known as:

• Revenue expenditure

• Capital expenditure

• Retained profit

• Personal funds

Money spent on the day-to-day running of a business is known as:

• Fixed assets

• Long-term investments

• Revenue expenditure

• Sale of assets

Share capital is also known as:

• Loan capital

• Overdrafts

• Equity

• Subsidies

Financial assistance granted by a government, a non-governmental organization or an individual to support business enterprises that are in the public interest are:

• Grants

• Subisidies

• Business angels

• Overdrafts

Which of the following are medium-term finance?

• Bank overdrafts and trade credit

• Leasing and grants

• Share capital and debt factoring

• Trade credit and leasing

Which of the following are fixed costs?

• Rent, insurance and salaries

• Rent, insurance and sales commissions

• Energy usage costs, rent and salaries

• Packaging, interest payments and insurance

Which of the following are indirect costs?

• Interest on loans, raw materials and direct labour

• Interest on loans, advertising expenditure and legal expenses

• Rent, packaging costs and raw materials

• Rent, office staff salaries and direct labour

The right formula to calculate the profit is:

• $Contribution\ per\ unit\ \times number\ of\ units\ sold\$

• $Total\ revenue\ -total\ variable\ \cos t$

• $Total\ contribution\ -total\ fixed\ \cos ts\$
  

• $Total\ contribution\ -total\ fixeds\ \cos ts\ -total\ variables\ \cos ts$
  

The break-even chart is:

• A graphical method that measures the difference between the break-even level of output and the actual level of output

• A snapshot of the financial of a firm and is used to calculate a firm's net worth

• A graphical method that measures the value of a firm's costs and revenues against a given level of output

• A method that estimates the length of time required for an investment to pay back its initial cost outlay

The method that measures the annual net return on an investment and assesses the profitability generated by a project over a period of time is known as:

• The payback period

• The average rate of return

• Net present value

• Net profit margin