Unit 5 recap

which is not a financial objective

• revenue

• Investment

• Survival

• Cashflow

(a)   is the annual return gained from investing in the asset

There are essentially only 2 types of capital that can be used to fund operations and investment expenditure

• True

• False

The accounts of a company show that it has loan capital of £30 million and share capital of £20 million. The proportion of long term funding which is debt is

• 150 percent

• 100 percent

• 60 percent

• 40 percent

(a)   allows you to pay off your day to day debts

which is not a type of budget

• Income

• Sales

• Expenditure

• Profit

(a)   variance occurs when the difference between the actual and budgeted figures will lead to the firms profits being lower than planned

(a)   balance is at the end of the month and year

when you produce too much than the quantity demanded

• Credit

• Overtrading

• Debenture

• Overdraft

A business can pay interest on a overdraft

• True

• False