Finance

Which one of the following is the level of money a business earns from trading operations?

• Net profit

• Gross profit

• Sales turnover

• Current assets

Which one of the following is the most likely description of a balance sheet in a business?

• A snapshot of the business's profitability at a point in time

• A statement of the business income and expenses

• A balance of the stock in hand left after sales

• The cash balance left in the bank account

   At what point is a business at break-even point?

• When it pays more than it’s making

• When it's making no profit and no loss

• When it's managing to make a net profit

• When it's managing to make a gross profit

Which one of the following describes the cash flow statement?

• Predicts all the cash flowing into the business

• Predicts all the cash going in and out of the business  

• Measures all the cash going in and out of the business

• Measures all the cash flowing out of the business

What is the main role of financial reporting?

• To provide averages and simple statistics

• To decrease the cash flows of the business

• To demonstrate how the business metrics work

• To communicate financial information to its users

What are the three main financial statements in financial reporting?

• Income statement/ balance sheet/cash flow statement

• Income statement/ cash flow statement/annual report

• Income statement/ shareholder dividends/owners' equity

• Income statement/ balance sheet/financed by owners' equity

Which one of the following is most likely to be a stakeholder with strategic decision-making interests?

• Customer

• Employees

• Suppliers

• Managers

What is the net profit margin for the company results reported below?

Extracts

Total sales turnover = 22,532

Cost of goods sold = 6.501

Gross profit = 16,031

Other operating expenses = 12,173

 

• 71.1 %

• 28.8 %

• 31.7 %

• 17. 1 %

What is the main advantage of using owner's capital when starting up a business?

• No impact on family finances

• No interference from mentors

• No interest payments charged

• No other investment needed

Which one of the following is the definition of hire purchase?

• A monthly agreement to use and own equipment on receipt of final payment

• An agreement to borrow a large sum of money to purchase vital equipment

• A monthly agreement to pay for the use of equipment but never ever own it

• An agreement to use equipment in return for the repair and maintenance of it