wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

Business Finance Recap

Total questions: 87

Worksheet time: 48mins

Name
Class
Date
1.

Which is an example of an internal source of finance?

a)

Retained Profits

b)

Hire Purchase

c)

Leasing

d)

Trade credit

2.

What is an advantage of owners' funds?

a)

There will are usually no interest charges

b)

You can pay in smaller installments

c)

They take a long time to arrange

d)

It is only available in limited amounts

3.

What is the most likely source of finance for buying property?

a)

Mortgage

b)

Factoring

c)

A bank loan

4.
The source of finance that is provided by the Owners is called 
a)
Capital
b)
Overdraft
5.
This type of finance does not need to be repaid.
a)
Bank Loan
b)
Overdraft
c)
Mortgage
d)
Government Grant
6.

If average variable cost is £10, and average selling price is £25, then what is contribution?

a)

£35

b)

£15

c)

£-15

d)

£40

7.

What is a business doing when it sells output beyond the break-even point?

a)

Making a loss

b)

Making a profit

c)

Making neither a profit or loss

d)

It is not possible to tell from the graph

8.

On a break even chart, which line starts at zero?

a)

Total Revenue

b)

Fixed Costs

c)

Total Costs

d)

Variable Costs

9.

Using this diagram what line is F?

a)

Total Revenue

b)

Variable Costs

c)

Total Costs

d)

Fixed Costs

10.

If fixed costs are 100, selling price is 10 and the variable costs are 5. What is break-even?

a)

25

b)

20

c)

10

d)

35

11.

What is the formula for Revenue?

a)

Total Sales + Costs = Revenue

b)

Number of Sales x Price per unit = Revenue

c)

Price per unit x Total Costs = Revenue

d)

Number of Sales - Total Costs = Revenue

12.

If Wendy sells 50 hot dogs at £2 each. What is her revenue?

a)

£250

b)

£100

c)

£120

d)

£52

13.

Which type of borrowing usually has extremely high rates of interest

a)

overdraft

b)

hire purchase

c)

payday loan

d)

personal loan

14.
Which one is not included in the Break Even formula?
a)
variable costs per unit
b)
total fixed costs
c)
selling price per unit
d)
cost price per unit
15.
What does break even point show?
a)
where a business is neither making a profit or loss
b)
how many items to make
c)
how much profit they're making
d)
where a business has more fixed costs than variable
16.
What is the margin of safety?
a)
the margin between projected units and break even point units
b)
the margin between profit and loss
c)
the margin between units and sales
d)
the margin between each break even point
17.

What is the formula for contribution?

a)

cost price - selling price

b)

fixed costs - variable costs

c)

selling price - variable cost

d)

selling price - cost price

18.
What is one limitation to calculating break even?
a)
helps projected sales
b)
based on estimates
c)
based on multiple products
d)
considers stock wastage
19.
My total costs are £50,000 when selling 100 items. My fixed costs are £20,000. What must be the variable cost of one item? 
a)
£300
b)
£500
c)
£200
d)
Cannot be calculated
20.
Which one is not an expense?
a)
raw materials
b)
production costs
c)
commission received
d)
insurance
21.
what is the purpose of an income statement?
a)
calculate the bank balance
b)
calculate net assets
c)
calculate sales
d)
calculate net profit
22.
How do you calculate gross profit?
a)
Sales - COGS
b)
Sales - NP
c)
COGS - Expenses
d)
COGS - NP
23.

Cost of sales is calculated by...

a)

Opening stock + purchases - closing stock

b)

Opening stock + purchases + closing stock

c)

Adding up all of the stock bought during the year

d)

Opening stock - closing stock

24.

How do you calculate net profit?

a)

Gross profit - expenses

b)

Revenue - total costs

c)

Gross profit - variable costs

d)

Revenue - indirect costs

25.
An building is a:
a)
Current Asset
b)
Current Liability
c)
Non Current Asset
d)
Non Current Liability
26.
An overdraft is a:
a)
Current Asset
b)
Current Liability
c)
Non Current Asset
d)
Non Current Liability
27.
A mortgage is a:
a)
Current Asset
b)
Current Liability
c)
Non Current Asset
d)
Non Current Liability
28.
A business' inventory is a:
a)
Current Asset
b)
Current Liability
c)
Non Current Asset
d)
Non Current Liability
29.
Current liabilities are Long term
a)
True
b)
False
30.

What is the Net Current Asset figure?

a)

£42 879

b)

£83 973

c)

£90 845

d)

£74 094

31.

Purchase of property for new office

a)

Capital Expenditure

b)

Revenue Expenditure

32.

Repairs to premises

a)

Capital Expenditure

b)

Revenue Expenditure

33.

Purchase of delivery van

a)

Capital Expenditure

b)

Revenue Expenditure

34.

Payment of Electricity Bill

a)

Capital Expenditure

b)

Revenue Expenditure

35.

Tenant paid $300 for rent

a)

Capital Receipt

b)

Revenue Receipt

36.

Interest expense on loan from bank

a)

Revenue Expenditure

b)

Capital Expenditure

37.

What does internal source of finance mean?

a)

A source from within the business

b)

A source from outside the business

38.

Which is an example of an internal source of finance?

a)

Owner's Capital

b)

Venture Capitalist

c)

Overdraft

d)

Trade credit

39.

What does external source of finance mean?

a)

A source from within the business

b)

A source from outside the business

40.

Which is an example of an external source of finance?

a)

Owners' Funds

b)

Sale of assets

c)

Retained profits

d)

Bank loan

41.
What is an advantage of a bank loan?
a)
There will be little or no interest
b)
You can pay in smaller installments
c)
They are quick and easy to arrange
d)
You don't have to pay it back
42.

Which of these facts about venture capitalists is NOT true?

a)

Venture capitalists tend to operate in fairly risky markets

b)

Venture capitalists would be paid a share of the profits

c)

Venture capitalists usually provide money only and have no interest in running the business

d)

Venture capitalists usually invest large sums of money

43.

Which of the following are DISADVANTAGES of selling shares as a source of finance? (select as many as appropriate)

a)

It means limited liability for the owners

b)

Dividends need to be paid to shareholders

c)

Large sums of money can be raised

d)

Does not apply to Partnerships or Sole Traders

44.

What is money?

a)

A verbal agreement

b)

A medium of exchange

45.

Which is not a functions of money?

a)

Store of value

b)

Legal tender

c)

Unit of Quantity

d)

Unit of account

46.

It allows a monetary value to be placed on goods and services

a)

Legal Tender

b)

Means of exchange

c)

Unit of account

d)

Store of value

47.

Childhood, Adolescence, Young Adult, Middle age and Old Age are part of what?

a)

External Influences

b)

Life Stages

c)

Culture

d)

Personal attitudes

48.

Who sets the interest rates?

a)

Government

b)

Bank of England

49.

Which is not a benefit of planning expenditure?

a)

Avoid getting into debt

b)

Generate income from savings

c)

Manage money to fund purchases

d)

Purchase personal belongings

50.

What is the ability to meet day-to-day expenditure and repay debts called?

a)

Credit rating

b)

Bankrupt

c)

Debt

d)

Solvency

51.

Allows customers to delay payments for goods and services.

a)

Credit Card

b)

Debit Card

c)

Annual Equinox Rate

52.

Which type of payment is the most widely excepted?

a)

Standing Order

b)

Cheque

c)

Direct Debit

d)

Cash

53.

Money is uploaded onto a card

a)

Store Card

b)

Contactless card

c)

Pre paid card

d)

Credit card

54.

Which of these sentences best describes an overdraft.

a)

Secured by property

b)

Allows you to withdraw money that you do not have

c)

Is suitable for long term borrowing

d)

Has a high rate of interest

55.

A payment method that allows you to make financial transaction through a mobile phone or tablet

a)

cheque

b)

mobile banking

c)

store card

d)

contactless payment

56.

A payment card issued by retailers

a)

charge card

b)

credit card

c)

store card

d)

debit card

57.

a function of money

a)

unit of decimal

b)

means of tender

c)

store of worth

d)

legal tender

58.

Which of the following is an advantage of a personal loan

a)

Interest is charged only on the amount outstanding

b)

Credit is secured against a specific item

c)

Regular pre-agreed payments make planning easier

d)

The amount you want to borrow is unlimited

59.

Give a feature of a premium current account

a)

Pay in and withdraw cash ONLY

b)

Free railcard to travel home for the holidays

c)

No overdraft

d)

Exclusive rewards such as insurance

60.

Money can be used to place a value on goods and services

a)

unit of account

b)

means of exchange

c)

legal tender

d)

store of value

61.

Which type of payment is the most widely accepted?

a)

standing order

b)

cash

c)

cheque

d)

direct debit

62.

Money can be stored in the bank and used at a later date

a)

unit of account

b)

means of exchange

c)

store of value

d)

legal tender

63.

Which account is suitable for people with poor credit rating?

a)

Standard

b)

Packaged

c)

Student account

d)

Basic

64.

Money is the legal and official way of paying for things.

a)

store of value

b)

legal value

c)

legal tender

d)

unit of account

65.

Some nationalities believe in saving as much money possible and not using credit. This is a

a)

Cultural factor

b)

Life events factor

c)

Life stage factor

d)

Personal attitude factor

66.

Which is not a reason to plan expenditure

a)

Avoid getting into debt

b)

Control costs

c)

Avoid legal action/repossession of home

d)

Reduces credit rating

67.

A current account has a number of features. Which is not a feature?

a)

Additional incentives

b)

Rate of interest with a positive balance on the account

c)

Overdraft limit

d)

A free mobile phone

68.

Which is not a reason to plan expenditure

a)

Avoid bankruptcy

b)

Maintain a good credit rating

c)

To change the exchange rate

d)

Manage money to fund purchases

69.

What does ISA stand for (business term)

a)

Individual savings accounts

b)

Individual accounts savings

c)

Account savings independant

d)

Independant savings accounts

70.

A which life stage could and individual have a large disposable income as dependents may have moved out or at university

a)

child

b)

young adult

c)

middle aged

d)

old age

71.

A payment method that allows customers to delay payments for the purchase of goods and services

a)

debit card

b)

pre-paid card

c)

credit card

d)

cash

72.

Which is not a reason to plan expenditure

a)

Provide insurance against illness

b)

Set finanacial targets and goals

c)

To improve the economy

d)

Generate income from savings

73.

What is the disadvantages of hire purchase

a)

Interest charges may be higher than traditional loans

b)

failure to meet payments may lead to a loss of home

c)

Can encourage over spending

d)

Penalties may be applied to early repayment

74.
Businesses might choose to use external sources of finance because
a)
There are no interest charges
b)
Potential cash flow problems are avoided
c)
There is insufficient retained profit
d)
There is an expected rise in interest rates
75.

This is the cash that is generated by the business when it operates successfully

a)

Retained profits

b)

Share capital

c)

Angel investor

d)

Owner savings

76.
What does internal mean?
a)
A source from within the business
b)
A source from outside the business
77.

Gross profit is calculated by...

a)

Revenue - Total Costs

b)

Revenue + Variable Costs

c)

Revenue - Cost of Sales

d)

Revenue - Fixed Costs

78.
Examples may include salaries, utilities, rent, insurance, and office supplies.
a)
Revenue
b)
Expense
c)
Net Income
d)
Net Loss
79.

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

a)

800

b)

500

c)

700

d)

300

80.

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Net Profit = ?

a)

800

b)

500

c)

700

d)

300

81.

What is balance sheet?

a)

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.

b)

A Balance sheet is one of a company's core financial sheet that shows their profit and lossProfit and Loss

82.

Which one is not belongs to liability?

a)

Mobile Phone Bill

b)

Bank Loan

c)

Bank Balance

d)

Owed To Friends

83.

The value of all assets minus the value of all liabilities.

a)

Financial obligations

b)

Assets

c)

Net Worth

d)

Property

84.
Which of the following is considered a liability?
a)
Savings Account
b)
Mortgage
c)
Savings bond
d)
Coin Collection
85.

Which one is not belongs to liability?

a)

Mobile Phone Bill

b)

Bank Loan

c)

Bank Balance

d)

Owed To Friends

86.

The balance sheet heading will specify a

a)

Period Of Time

b)

Point In Time

87.
Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.
a)
liquidity ratios
b)
efficiency ratios
c)
leverage ratios
d)
profitability ratios

Similar Resources on Wayground

Technology Management: Organizational Planning and Control

86 questions

Technology Management: Organizational Planning and Control

quiz

Worksheet

•

University

Strategic Managnement

90 questions

Strategic Managnement

quiz

Worksheet

•

University

Money Market Instruments Quiz

85 questions

Money Market Instruments Quiz

quiz

Worksheet

•

University

UTS Pengantar Bisnis

90 questions

UTS Pengantar Bisnis

quiz

Worksheet

•

University

Strategy implementation, SAFe and barriers to implementation

88 questions

Strategy implementation, SAFe and barriers to implementation

quiz

Worksheet

•

University

Distribution

90 questions

Distribution

quiz

Worksheet

•

University

Fina 3000 exam 2

89 questions

Fina 3000 exam 2

quiz

Worksheet

•

University

Strategic Management Midterm Exam

82 questions

Strategic Management Midterm Exam

quiz

Worksheet

•

University