Business Finance Key Terms Quiz

What is the definition of 'Cash Flow'?

• An item owned by a business such as premises or vehicles.

• The money in notes and coins.

• The total money the business hopes to receive from sales revenue.

• The measurement of cash coming into or out of a business.

How is 'Gross Profit' calculated?

• Opening Inventory + goods purchased - closing inventory

• Gross Profit - total expenses

• Total assets - total liabilities

• Sales Revenue - Cost of Sales

Which of the following is considered a 'Non-current asset'?

• Accounts receivable

• Building

• Inventory

• Cash in hand

What does 'Net Profit' take into consideration?

• All expenses paid by the business

• Only cost of sales

• Only the opening inventory

• Only sales revenue

What is 'Equity' in a business context?

• The total sales of products and services to a customer

• The accurate value of a business on any given date

• The value held in the business

• The running costs of any business

What are 'Current Liabilities'?

• Amounts owning by the business which must be paid immediately

• The wealth with the business/money invested

• Amounts owned by a business which may be owned over a longer period of time

• Items owned by the business which can be quickly exchanged for cash

What does the 'Statement of Financial Position' show?

• The total money the business hopes to receive from sales revenue

• An accurate value of the business by looking at its assets, liabilities, and net worth

• The measurement of cash coming into or out of a business

• The gross and net profits at the end of the year's trading