unit 3 quiz 4

The margin of safety is useful because it allows a business to know by how much ​ (a)   can fall by before a ​ (b)   is made

• sales
• loss
• revenue

Which of these is not capital income

• Loan

• shares

• Owners capital

• Rent Received

Which of these are not revenue income

• cash sales

• credit sales

• rent received

• interest received

• Loans

Match the following

• protects consumers when banks fail 2 pay

• IVA

• legally declaring inability to pay debts

• FSCS

• settles disputes between 2 parties

• Financial ombudsman

• formal agreement to pay back debts

• Financial Conduct Authority

• Authorizes& regulates financial activity

• Bankruptcy

Label the Break Even Chart

c

d

e

b

a

Break Even point

Profit

Total Revenue

Fixed Costs

Total Costs

Organize these ratios into the right categories

Groups:

(a) Profitability

,

(b) Liquidity

,

(c) Efficiency

• Gross Profit Margin

• Trade Receivable Days

• Profit Margin

• Inventory Turnover

• Current Ratio

• Trade Payable Days

• Return on Capital Employed

• Mark Up

• Liquid Capital Ratio

Organize these options into the right categories

Groups:

(a) Packaged, Premium

,

(b) Basic

,

(c) Student

• Travel Insurance

• No Overdraft facility

• You have to pay for the account

• For People with poor credit

• interest Free overdraft

Organize these options into the right categories

Groups:

(a) Individual Savings Account

,

(b) Bonds and gilts

,

(c) Premium Bond

,

(d) deposit and savings

• entered into prize draw

• Interest earned is tax free

• at the end of the fixed term the initial amount borrowed is paid back

• involves borrowing to governments or companies

• no interest is paid

• interest is paid for a fixed term

• there is a limit set on the annual amount that can be saved

• interest paid is taxable

• no guarantee money saved will grow

With the reducing balance method the asset is depreciated using the ​ (a)  

• net book value
• historical cost
• resale value

Organize these options into the right categories

Groups:

(a) Outflows

,

(b) Inflows

• Salaries

• capital introduced

• Cash Purchases

• Credit sales

• Rent

• sale of assets