IB Business Management MCQ QuizIB_Business_Management_3_4 Break_

Identify the stakeholder group least likely to show an interest in a firm’s final accounts.

• Competitors

• Customers

• Managers

• Shareholders

Why might suppliers be interested in the final accounts of a firm?

• To determine if it is generating profit for investors (return on equity)

• To know how able and quickly the firm can pay its creditors (liquidity)

• To know how much the firm borrows from lenders (gearing)

• To know if the company is doing well (profitability)

Which financial statement illustrates a firm’s performance from its trading activities over a given period of time?

• Balance sheet

• Cash flow forecast

• Cash flow statement

• Profit and loss account

Identify another title used for the profit and loss account.

• Balance sheet

• Cash flow forecast

• Income statement

• Statement of profit or loss

Identify the element that is not part of a profit and loss account.

• Expenses

• Gross profit

• Non-current assets

• Retained profit

Identify the synonym for cost of sales, with examples including raw materials.

• Direct costs

• Fixed costs

• Indirect costs

• Total costs

Using the table below, calculate the gross profit.

• $10,000

• $13,777

• $96,348

• $136,125

Using the table below, calculate the profit before interest and tax.

• $11,777

• $13,777

• $17,554

• $96,348

Using the table below, calculate the retained profits.

• $9,300

• $11,427

• $12,500

• $13,777

A firm sells 22,500 units at an average selling price of $42. Calculate the firm’s sales revenue.

• $94,500

• $420,000

• $945,000

• $1,000,000