U2 AOS 1 Bus Man Holiday Homework Quiz 2022

A small business owner should just run their business expenses through their own private bank account.

• True

• False

An accounting principle which states that all transactions of a business and its owners should be separate.

• business separation

• separate entity

• separation positions

• separate accounting

What does PDS stand for?

• Price Determination Status

• Product Disclosure Statement

• Prices and Debit Statements

A low interest rate will allow businesses to make more profit on the funds they keep in their bank accounts.

• True

• False

When a business withdraws more money from a bank than they have, this is known as ________.

• interest rates

• bank fees

• debit withdrawal

• overdraft facility

Every business needs to establish financial ______ systems which allow them to monitor and manage their financial performance.

A cash flow statement shows an overview of money flowing in and out of a company

• True

• False

The monthly net cash flow for a business is calculated by:

• sales revenue - cost of goods sold
• total cash in - total cash out
• total cash out - total cash in
• total cash in - cost of goods sold

Budget benchmarks are ...

• when a business compares planned budgets with actual finances to analyse performance

• creating and planning a range of budgets, including cash flow and income statement budgets

• creating budgets on a monthly, quarterly, or annual basis

A business may encourage clients to pay invoices early by offering a discount. This lowers profits but...

• helps to regulate inventory control

• improves cash flow

• enables them to stick to their budget

• gives them better control of accounts receivable