Sample Unit 2 Test C MCQ Only

Name

Group

• 1
• 2
• 3

1: Select one type of expenditure for a scarf shop

• Taking out a bank loan
• Paying wages to staff
• Selling scarves to customers
• Displaying accessories

2: Identify one source of business revenue

• Electricity bills paid for running the business
• Wages received by staff for work they do
• Payments received from customers
• Purchase of inventory (stock)

4: Rowan produces souvenir toys. His direct costs are £2548 The indirect costs for producing the toys are £1795 Calculate Rowan’s total cost for making the toys

5: Select one example of a cash outflow

• Product sales
• Sale of assets
• Stock purchases
• Receipt of a loan

6: What are debts owed by a business that are due to be repaid after a year?

• Current liabilities
• Long-term liabilities
• Current Assets
• Fixed Assets

7: Jean owns a business making baby clothes Identify two variable costs for Jean’s business

• Wages for the staff
• Insurance for the business
• Salary for the production manager
• Materials for the baby clothes
• Rent for the factory

8: Identify two start-up costs for a manufacturing business Click on two of the answers

• Paying electricity bills
• Purchasing a new piece of machinery
• Replacing stock used to produce goods
• Buying a factory to locate the business
• Giving staff commission on sales

9: Which statement describes an income statement (profit and loss account)

• It shows the total expenses paid over a year
• It shows the total cash inflows into a business
• It shows what a business owes at a point in time
• It shows where a business gets its capital