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Worksheets6. Finance
Total questions: 15
Worksheet time: 15mins
Which of the following is an example of an internal source of finance?
Selling unwanted assets
Issuing new shares
Hire purchase
Loan from family and friends
Which of the following potential problems might a business start-up encounter when trying to organise a bank loan?
The loan would need to be repaid in a lump sum
The bank will offer advice to the entrepreneur
Banks may require an asset as collateral
No interest would be charged on the loan
Which of the following legal structures could finance expansion by issuing new shares via the stock market?
A sole trader
A partnership
A private limited company
A public limited company
Which of the following is another name for an outflow in a cash flow forecast?
Receipt
Payment
Deficit
Surplus
An extract from a firm’s cash flow forecast for April is shown in the table above. Based on this information, its closing balance for April is:
£47,726
£52,497
£57,268
£102,774
When running a business, which of the following statements is true?
Profit is more important than cash in the short term
Cash flow forecasts predict the profit available to spend in a business
Profits can be used to reward the owners of a business
An unprofitable business cannot survive in the short term
Which of the following would appear in the equity section of the statement of financial position?
Share capital
Tax due
Revenue
Overdraft
An individual or an organisation that owes a business money is called a:
Payable
Receivable
Creditor
Debtor
An extract from a firm’s income statement for last year is shown in the table below. Based on this information, its gross profit margin for last year was:
62.5%
45%
37.5%
17.5%
On an income statement, which of the following is another name for an overhead?
Outflow
Receipt
Expense
Payment
Which of the following is the correct formula to calculate total sales revenue?
Selling price per unit x output sold
Total fixed costs + total variable costs
Unit cost x output
Total inflows – total outflows
The horizontal line on the break-even chart which is drawn parallel to the x axis is called the:
Fixed cost line
Variable cost line
Total cost line
Total revenue line
A business expects its rent to increase. This would mean:
The break-even point would rise
The break-even point would fall
The break-even point would stay the same
The business would need to sell less units to break-even
Based on this information above, the main problem the business may face when starting up is:
The fixed costs are too high
The variable cost per unit is too high
Total variable costs are too high
Total revenue is too high
The table shows some financial data for a planned business investment. Based on this information, the average rate of the return for this investment is:
12.5%
14.29%
16.67%
700%
