Y8 Business Studies - C6 Business Accounting

What is an account?

• A financial record of transactions

• A type of financial analysis

• A type of business document

• A method of payment

What must be produced at the end of the year?

• A purchase order

• A credit note

• A final account

• A delivery note

Which document is a request for buying products?

• Invoice

• Cheque

• Receipt

• Purchase order

What is a cheque?

• A request for payment

• A document confirming delivery

• A record of sales

• A written order to pay money

Who uses the financial accounts of a business?

• Only other companies

• Only the government

• Shareholders and creditors

• Only the accountants

What does the trading account show?

• Total liabilities

• Net profit calculation

• Current assets

• Gross profit calculation

What is included in the profit and loss account?

• Only liabilities

• Net profit calculation

• Only total assets

• Only gross profit

What does a balance sheet show?

• Gross profit

• Assets and liabilities

• Sales revenue

• Expenses

What are fixed assets?

• Assets that are sold

• Assets that are liabilities

• Assets for short-term use

• Assets owned for long-term use

What is the formula for gross profit?

• Gross profit = Net profit + Expenses

• Gross profit = Total assets - Total liabilities

• Gross profit = Sales revenue - Cost of goods sold

• Gross profit = Sales revenue + Cost of goods sold