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WorksheetsUnit 2 Finance
Total questions: 30
Worksheet time: 25mins
Identify one example of a variable cost for shoe shop.
Purchase of inventory(Stock)
Paying rent
Heating and lighting
Till to record sales
Identify one example of a cash inflow.
Stock purchases
Electricity payments
Salaries paid to employees
Interest gain from savings
Ali owns a small car repair business. In the last month he paid £1245 for car parts. He also paid an assistant mechanic £460 in wages. His rent for the month was £3200.
Calculate the monthly total costs for Ali's business. Select the 2 correct answers.
Total Costs = £460+£3200+£1245
£4905
£3905
Total Costs = £460+£3200-£1245
Aman owns a small business selling clothes. The price of a T-Shirt is £4.50. In the last month he has sold 1400 T-Shirts.
What is Aman's revenue for last month?
Select the two correct answers
£6300
1400 / £4.50
1400 x £4.50
£6150
Mario is a self-employed plumber.
He regularly buys plumbing materials.
Mario's plumbing materials are an example of which type of cost?
Fixed cost
Direct cost
Indirect cost
Start-up cost
Select one external source of finance for a small business.
Overdraft
Retained
Owners personal
Sale of non current assets
How can a business increase its operating profit margin?
By increasing revenue
By increasing variable costs
By increasing overheads
By increasing the breakeven point
Which one of the following best describes a fixed cost? A cost that:
Changes directly with output
Stays the same regardless of output
Only needs to be paid once, when the business first starts-up
Needs to be paid once a month
The table below gives information about Business A. Based on this information, Business A’s total fixed costs are:
£10,000
£30,000
£40,000
£70,000
Harry organises boat trips.
He sells 43 trips each month at £125 each.
Calculate Harry's revenue for the year.
Select two from below.
64500
12 x 5075
12 x 5375
61500
Select two reasons why a business would create a cash flow forecast.
To value the assets of the business
To calculate how much the business is worth
To support an application for a bank loan
To show the level of debt that a business has
To see how much the business may receive
What is meant by 'sales revenue'?
Money from the sales of goods and services
Income from the cost of goods and services
The money made on products
The value of output sold in a particular time period
Ali runs a small flower stall in a local market.
He wants to increase his revenue.
Ali has decided to increase his product range to include plants and trees as well as decorative vases and garden ornaments.
Select two other ways Ali could spend money to help increase revenue.
Move to a busier market/part of market
Increase the variable costs
Decrease the indirect costs
Open on more days
Change the quality of the flowers
In January a business has an opening balance of £4000.
It expects to have a net cash outflow of £1000 for the month.
Select two possible outcomes of this for the business,
The business expects to have an opening balance of £3000 in February
The business expects to owe £3000 to suppliers at the end of January
The business expects to make a loss of £3000 in February
The business expects to make a profit of £3000 in February
The business expects to have £3000 in the bank at the end of January
Ali runs a small barber shop.
He has created a breakeven analysis.
One benefit of this is that it shows Ali the margin of safety for a business.
Select two other benefits to Ali of using breakeven analysis.
Identifies how much money business needs to make for barber equipment.
Identifies output level/sales a business needs to make a profit.
Doesn't identifies output level/sales a business needs to make a profit.
Shows the levels of profit/loss made when costs change.
A building is a:
Current Asset
Current Liability
Fixed Asset
Long term Liability
Revenue and profit is the same thing.
Corret
Wrong
Working Capital is
Total Assets - Total Liabilities
Current Assets - Current Liabilities
Owner's Equity
Non-Current Assets - Non-Current Liabilities
Which of the following are uses of Working Capital?
To buy inventory
To pay short-term debts
To pay operating expenses
A business has the following monthly costs:
Fixed Costs = £400
Variable Costs £10 per item
What is the fixed costs if they make 100 items?
£10
£100
£400
£1000
A business has the following monthly costs:
Fixed Costs = £400
Variable Costs £10 per item
What would their total costs be if they increase production to 200 items a month?
£240
£2400
£400
£24000
Complete the following formula to show how the variable cost figure is calculated using one of the choices from below. Variable Costs = ...................... x Number of units produced
Cost of one unit
Sales Revenue
Fixed Costs
Costs of ten units
James runs a business making wicker chairs. He estimates the following monthly costs: Variable costs of £30 for each chair he makes fixed costs of £120. James make Six chairs in February.
Work out the variable costs
180.00
150.00
80.00
200.00
A business has the following monthly costs:
Fixed Costs = £400
Variable Costs £10 per item
What are the variable costs if they make 100 items?
£10
£100
£1000
£10000
£400
