Managing budgets and finances

How long is financial data retained by an organisation for?

• Six years

• Seven years

• Nine years

• 10 years

In a cost-benefit analysis, which is the correct formula?

• Payback Period = Estimated Annual Revenue x Total Cost of Investment

• Payback Period = Total Cost of Investment ÷ Estimated Monthly Revenue

• Payback Period = Annual Cost of Investment x Estimated Total Income

• Payback Period = Total Cost of Investment ÷ Estimated Annual Revenue

What is the result of a decrease in corporation tax on a business?

• Positive cash flow will be harder to maintain.

• Exporting will become more attractive.

• Supply chains will be interrupted

• Operating costs will decrease.

A rise in inflation means:

• Reduce waste

• Improve sales

• Increase costs

• Decrease ownership

Self service checkout tills in supermarklets impact the organisation by:

• showing an increase in theft of low value items.

• giving customers a better experience.

• needing to employ less staff for checkouts.

• giving extra work to the consumers

Which of the following would banks use to work out inflation?

• Gross Domestic Product (GDP)

• Census data

• Customer Price Index (CPI)

• Business tax paid to government

Which of the following statements about customer payment details is correct?

• Details of payment cards are kept in paper format.

• Details of payment cards are kept for six months.

• Details of payment cards are kept in digital format.

• Details of payment cards are kept for two months.

What is the KEY purpose of financial monitoring?

• To assess how much profit is being made.

• To ensure potential fraud is caught quickly.

• To help with budgeting for the year.

• To track organisation's performance over time.

If an organisation chose to reduce costs passed on to customers,

which area would this negatively impact?

• Debt

• Expenses

• Profit

• Growth

What does cash flow mean within an organisation?

• The amount of petty cash held.

• The amount of cash assigned for salaries.

• The amount of cash moving in and out of the organisation.

• The amount of cash needed to balance the books.