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Higher BM - Finance Revision

Authored by Kyle Ramsay

Business

12th Grade

Used 1+ times

Higher BM - Finance Revision
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15 questions

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1.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Compare a bank loan and a government grant (2)

Has to be repaid overtime whereas doesn't have the be repaid

Renting an asset whereas paying in monthly instalments

Both involve borrowing an asset for a length of time

You can get it time and time again whereas often only one-off

2.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Compare a leasing and hire purchase (2)

Has to be repaid overtime whereas doesn't have the be repaid

Renting an asset whereas paying in monthly instalments

Both involve borrowing an asset for a length of time

You can get it time and time again whereas often only one-off

3.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Explain the benefits of preparing a cash budget (3)

It shows the gross profit and profit for the year of the business which allows them to calculate dividend payments

Managers can compare planned budgets with actual performance which helps to monitor performance

It highlights periods where a deficit is expected which allows for finance to be put in place to prevent it

It highlights periods of excess cash/surplus which allows the business to plan for investment

4.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Describe the advantages to a finance department of using accounting software (2)

Calculations are carried out by the software by entering a formula so errors are minimised

Can simulate products in a 3D environment which reduces waste

Most software allow for information to be password protected to restrict access

Can improve efficiency of production which helps to reduce costs

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

Describe the ratio which Santander UK plc may calculate from the Income Statements shown in Exhibit 4 (1)

Current Ratio

Current Assets\ Current Liabilities

Acid Test Ratio

(Current Assets - Closing Inventory)\ Current Liabilities

Profit for the Year Percentage

Profit for the Year\ Sales Revenue x 100

Gross Profit Percentage

Gross Profit\ Sales Revenue x 100

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

Using Exhibit 3, describe the ratio which NHS Health Scotland can calculate from its Statement of Financial Position (1)

Current Ratio

Current Assets\ Current Liabilities

Acid Test Ratio

(Current Assets - Closing Inventory)\ Current Liabilities

Profit for the Year Percentage

Profit for the Year\ Sales Revenue x 100

Gross Profit Percentage

Gross Profit\ Sales Revenue x 100

7.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Media Image

Describe the possible reasons for the increase in Santander UK plc’s Profit for the Year figure from 2020 to 2021 (2)

Increase in sales revenue

Decreased gross profit

Decrease in expenses

Decrease in other income

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