LAB Revision Questions

State four types of financial documents businesses use

Outline the purpose of the following documents: invoice, delivery note, statement of account.

Outline one reason why it is important that these documents are completed accurately.

State four types of payment methods.

Identify which of the following are start up and running costs: machinery, electricity, premises purchase, broadband charges, raw materials, business rates, equipment, van

Give the formula for how to calculate turnover (net sales)

Based on Business A producing 300 coffees in Year 1, calculate the average selling price.

Calculate the Gross Profit of both businesses in both years.

Business A Year 1 and 2

Business B year 1 and 2

Calculate the Net Profit of both businesses in both years

Business A Year 1 and 2

Business B year 1 and 2

Using the Statement of Financial Position, calculate the total assets and liabilities of the business.