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BTEC : C3 exam prep

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

Which of the following is not a payment method for a customer?

a)

Cash

b)

Exchange rate

c)

Direct debit

d)

Credit card

2.

Why is a credit note used?

a)

To list orders and payments made

b)

To confirm a customer has paid a bill

c)

To identify goods ordered from a supplier

d)

To correct an error on a customer account

3.

What is a purchase order used for?

a)

To list orders and payments made

b)

To identify goods ordered from a supplier

c)

To confirm a customer has paid a bill

d)

To correct an error on a customer account

4.

What is a receipt used for?

a)

To list orders and payments made

b)

To correct an error on a customer account

c)

To confirm customer has paid a bill

d)

To identify goods ordered from a supplier

5.

What is a statement of account used for?

a)

To list orders and payments made

b)

To correct an error on a customer account

c)

To confirm customer has paid a bill

d)

To identify goods ordered from a supplier

6.

One benefit of B2C marketing is =

a)

charge a lower unit price because it is selling direct to the consumer

b)

charge a higher unit price because it is selling direct to the consumer

c)

sell to a smaller target market

d)

there is no need to use above the line promotion

7.

One thing to consider when dealing with cash =

a)

make sure that the interest rate is low.

b)

making sure that monthly direct debits are managed and tracked

c)

ensuring the enterprise has internet access so that the card machine is operating

d)

safe storage because holding cash makes the enterprise more attractive to thieves

8.

Net current assets =

a)

Current assets + Fixed assets - Current liabilities

b)

Current assets - Current liabilities

c)

Fixed assets - Non current liabilities

d)

Current assets + Fixed assets

9.

Current ratio =

a)

Fixed assets - Cost of sales

b)

Current assets - Current liabilities

c)

Current assets / Current liabilities

d)

Current assets + Current liabilities

10.

Liquid capital ratio =

a)

(Current assets - Current liabilities) / Inventories

b)

(Current assets + Inventories) / Current liabilities

c)

(Current assets x Inventories) / Current liabilities

d)

(Current assets - Inventories) / Current liabilities

11.

Potential cause of the predicted net profit being negative =

a)

Expenses are lower than expected

b)

Sales revenue is too high

c)

Cost of sales could be too low

d)

Cost of sales could be too high

12.

ONE action an enterprise could take to overcome the cause of the predicted net profit being negative =

a)

Increase cost of sales

b)

Decrease selling price per unit

c)

Attract fewer customers

d)

Increase selling price per unit

13.

An advantage of using a bank loan is that it allows the enterprise _____

a)

to charge higher prices to their customers

b)

to incur interest charges

c)

to start generating revenue immediately

d)

to achieve above the line promotion

14.

Which line is not shown on a break even chart?

a)

Fixed costs

b)

Start up costs

c)

Total costs

d)

Total revenue

15.

What does the straight, flat/horizontal line on a break even chart represent?

a)

Net profit

b)

Total revenue

c)

Total costs

d)

Fixed costs

16.

A limitation is that break-even analysis assumes the ____

a)

who is running the enterprise

b)

gross profit that will be generated

c)

net profit that will generated

d)

external environment is stable

17.

Which one of the following is a cash outflow?

a)

Capital from investors

b)

Sales revenue

c)

Staff wages

d)

Property rental income

18.

Net cash flow =

a)

Cash inflows - Cash outflows

b)

Cash inflows + Cash outflows

c)

Opening balance - Net cash flow

d)

Cash inflows / Cash outflows

19.

The closing balance on a cash flow forecast becomes the ____

a)

Net cash flow in the next month

b)

Opening balance in the next month

c)

Cash inflow in the next month

d)

Cash outflow in the next month

20.

One solutions that an enterprise could use to improve cash flow =

a)

Use more expensive suppliers

b)

Charge a lower selling price unit

c)

Increase cost of sales

d)

Find cheaper suppliers

21.

____ can help build a relationship with potential customers

a)

Holistic selling

b)

Indirect selling

c)

Ambient advertising

d)

Direct selling

22.

An advantage of print advertising is that it ____

a)

can be targeted to a specific area

b)

is easily ignored

c)

it is free to produce and distribute

d)

the enterprise has minimal control over how the advertising message is presented