Sample Assessment Unit 2

Identify one way a business makes money

• Paying back a bank loan

• Selling products to customers

• Spending money on a new factory

• Buying materials to make products

Identify one example of expenditure

• Take out a bank loan

• Receiving interest on savings

• Selling goods to customers

• Spending money on stock

Costs that change with the level of out put are...

• Fixed costs

• Variable costs

• Total costs

• Costs

When expenditure is more than revenue a business is...

• Breaking even

• Making a loss

• Making a profit

• Has a margin of safety

Jasmine has a sweet shop. Her total costs for last year were £87927. Her total revenue for last year was £134 259. Calculate the profit Jasmine made.

Identify one example of a cash inflow.

• Buying promotional leaflets

• Purchasing raw materials

• Selling used machinery

• Paying electricity bills

Alex owns a van that he uses to deliver sandwiches to customers. In which section of his statement of financial position (balance sheet) should Alex's van be shown?

• Net assets

• Working capital

• Current assets

• Fixed assets

Choose two budgets that Jill would use to manage her perfume shop.

• Cash Flow Forecast

• Revenue budget

• Expenditure budget

• Break Even

Complete the formula for total cost.

Total cost = Fixed costs + ________

Select three ways Caroline can improve her gross profit.

• Increasing revenue by increasing her selling price.

• Increasing revenue by advertising more.

• Reduce her cost of sales.

• Reduce her fixed costs