BS2268 Topic 1-10 Revision

Which of the following is NOT a valid reason to claim on a Payment Protection Insurance policy?

• Involuntary unemployment

• Sickness

• Voluntary unemployment

• Accident

• Don't know

If you borrow £19,000 for 3 years with an interest rate of 5% per annum which compounds quarterly, how much interest will you have incurred at the end of Year 1? Assume no payments are made towards principal sum or interest during the term of the loan.

• £730

• £968

• £998

• £1,028

• Don't know

You have a pension fund of £620,000 and plan to take all the tax-free amount and use the rest to buy an annuity. How much annual pension income will you receive if the annuity rate is £425?

• £16,265

• £19,530

• £19,763

• £26,350

• Don't know

Which of the following is TRUE for a defined benefit scheme?

• High risk to employer

• Funds are invested by pension holder

• Also known as money purchase scheme

• High risk to employee

• Don't know

You are preparing a tender to try and win a new contract for the organisation you work with. You have calculated the cost of sales for the contract to be £96,000 and company policy is to apply a markup of 25%. What sales figure will need to be set for this contract?

• £110,200

• £120,000

• £122,400

• £125,500

• Don't know

You are responsible for issuing payments to suppliers for the company you work with. All payments are to come out of a British Pound (GBP) bank account. A supplier is due to be paid in local currency, the amount due is 65,500 Australian Dollars (AUD). At a rate of 1 GBP = 1.96 AUD, what is the GBP equivalent of the AUD amount due?

• £110,515

• £33,418

• £128,380

• £77,000

• Don't know

If average cost of sales is £120,000 a month and the average inventory balance is £350,000, what is the average inventories turnover period?

• 25 days

• 45 days

• 89 days

• 99 days

• Don't know

Which of the following individual savings accounts (ISAs) will allow you to deposit a maximum of £4,000 each tax year?

• Stocks and

  Shares ISA

• Lifetime ISA

• Cash ISA

• Innovative

  Finance ISA

• Don't know

Nemo Ltd has a 2 for 5 rights issue at £1.25 per share. Nemo Ltd currently have 40,000 shares in existence. If all shareholders take up the rights, how much finance will be raised?

• £16,000

• £20,000

• £100,000

• £125,000

• Don't know

Pinocchio dies on the 1st September 2023. His assets were a house worth £500,000, an ISA account with £50,000 in it, and wood carvings worth £10,000. He leaves the wood carvings to a registered charity and the rest of his assets to his brother, Geppetto. Funeral expenses were £1,000. How much inheritance tax is due?

• £69,600

• £89,600

• £93,600

• £219,600

• Don't know