Break even

What are non-current assets?

• Debts that need to be paid back within one year

• Assets that have long-term use or value

• Items of value that the business owns

• Assets that the business can convert into cash within one year

What is the straight-line method used for in finance?

• Calculating the rate of depreciation

• Charging depreciation at a higher rate in the earlier years of an asset

• Predicting the cash balance at regular intervals

• Calculating the expected amount of money to be deposited into the bank account in a month

What is the margin of safety in finance?

• The amount by which the sales of a company can fall before it reaches the break-even point.

• The value of the asset at the start of the period.

• The movement of money into and out of a business bank account.

• The difference between the inflows and the outflows of a business bank account.

What is the purpose of a cash flow forecast?

• To calculate the rate of depreciation

• To predict when the cash flows will occur

• To calculate the break-even point

• To inform pricing decisions

What is the reducing-balance method used for in finance?

• Calculating the amount of money expected to go into the bank account in a month

• Predicting the cash balance at regular intervals

• Charging depreciation at a higher rate in the earlier years of an asset

• Calculating the rate of depreciation

What is the break-even point in finance?

• The value of the asset at the start of the period.

• The difference between the inflows and the outflows of a business bank account.

• The amount by which the sales of a company can fall before it reaches the break-even point.

• The point at which a business just covers all its costs from the revenue it has made.

What does the term 'net current assets/liabilities' mean in finance?

• Current assets minus current liabilities

• The difference between the money brought into the business each year and the money the business owes

• The amount of money in a business' account at any particular time

• The value of the asset at the start of the period

What is the purpose of a break-even chart?

• To inform pricing decisions

• To predict when cash flows occur

• To illustrate areas of profit or loss

• To calculate the break-even point

What are current assets in finance?

• Items of value that the business owns

• Debts that need to be paid back within one year

• Assets of long-term value

• Assets that the business can convert into cash within one year

What is the net assets in finance?

• Net current assets/liabilities + Non-current assets - Non-current liabilities

• The amount of money in a business' account at any particular time

• The difference between the money brought into the business each year and the money the business owes

• The value of the asset at the start of the period