WorksheetsTheme 2 - Complete quiz
Total questions: 40
Worksheet time: 20mins
Which one of the following is a source of internal finance?
Peer to peer lending
Sale of assets
Business angels
Bank overdraft
Which one of the following is a source of external finance?
Owner's capital
Retained profits
Sales of assets
Crowd funding
If a business borrows money from an external source, they are likely to have have to undergo what?
An equity assessment
A credit check
A due diligence investigation
A lease provision
The lender has no protection if the borrower fails to repay the money owed =
Debenture
Capital gain
Secured loan
Unsecured loan
The profit made from selling a share for more than it was purchased for =
Capital gain
Operating profit
Gross profit
Share issue
A contract to acquire the use of resources such as property or equipment =
Permanent capital
Crowd funding
Lease
Venture capital
An asset that might be sold to pay a lender when a loan cannot be repaid =
Limited liability
Rights issue
Collateral
Depreciation
Issuing new shares to existing shareholders at a discount =
Amortisation
Debenture
Share capital
Rights issue
In a cash flow forecast, the cash inflows less the cash outflows = ???
Net cash flow
Closing balance
Opening balance
Net profit
In a cash flow forecast, the net cash flow plus (or minus) the opening balance = ????
Gross profit
Closing balance
Break even point
Cash outflow
The degree to which a business is able to meet its debts when they fall due = ???
Contribution
Net cash flow
Margin of safety
Solvency
Charged by banks and other financial instruments for borrowing money = ????
Depreciation
Interest rates
Capital gain
Exchange rate
What is judged by using the Gross Domestic Product <GDP>?
Economic growth
Extraploation
Liquidity
Break even point
The general rise in consumer prices over time =
Amortisation
Opportunity cost
Inflation
Gross profit margin
The habits or behaviours of consumers that determine the goods and services they buy = ????
Consumer trends
Economic variables
Consumer income
Working capital
Costs that stay the same at all levels of output = ???
Direct costs
Running costs
Fixed costs
Variable costs
A cost that rises as output rises = ???
Sales revenue
Variable costs
Fixed cost
Indirect cost
What is the formula to calculate 'average cost' (or unit cost)?
Total cost - Output x 100
Total cost x Output
Total cost / Output
Total cost / Output x Direct costs / 100
The amount of money left over after variable costs have been subtracted from sales revenue = ???
Tip - used when calculating the break even point
Depreciation
Contribution
Net profit
Raw materials
The difference between the actual level of output and the break even output. =
Tip - linked to break even.
Break even point
Margin of safety
Margin or error
Margin of contribution
The point at which total revenue and total costs are the same = ???
Point of profit
Contribution
Margin of safety
Break even point
A quantitative economic plan prepared and agreed in advance = ???
Return on capital employed
Current ratio
Budget
Average rate of return
Sales revenue - Cost of sales = ????
Gross profit
Operating profit
Net profit
Profit for the year
Sales revenue minus cost of sales - all other expenses = ???
Capital gain
Gross profit
Operating profit
Net profit
How could a business improve profitability?
Higher administrative costs
Use suppliers that charge a higher price
Lower their selling price
Increase their selling price
A one off cost, such as writing off a large bad debt = ???
Capital expenditure
Amortisation
Cost of sales
Exceptional cost
Resources owned by a business = ???
Liquidity
Liability
Assets
Profit
Money owed by the business to somebody else = ???
Share capital
Depreciation
Liability
Non current asset
Assets that can be converted into cash within 12 months = ????
Non current asset
Current asset
Intangible asset
Fixed asset
Money owed by a business that needs to be repaid within one year = ????
Net assets
Non current liability
Non current asset
Current liability
Long term loans / debts that do not have to be repaid within one year = ???
Current liability
Current asset
Non current asset
Non current liability
What is the current ratio formula?
Current assets / current liabilities
Current assets - current liabilities
Current assets + current liabilities
Current assets x current liabilities
What financial document provides a snapshot of a business's assets and liabilities?
Sales forecast
Statement of comprehensive income
Statement of financial position
Break even analysis
The money needed to pay for day to day expenses of a business = ???
Owner's capital
Inventories
Working capital
Shareholders' equity
What is the formula to calculate working capital ?
Current assets + Current liabilities
Current assets x Current liabilities
Current assets / Current liabilities
Current assets - Current liabilities
Which one of the following is NOT a way to improve liquidity?
Increase credit period for trade debtors
Use of overdraft facilities
Obtain a short or long term loan
Sell old stock
Leaseback of assets
Investing in large production costs but not having the cash to pay for it = ????
Experiential trading
Under trading
Quantitative trading
Over trading
Factors beyond the control of a business that cause it to fail = ????
External factors
Internal factors
Over trading
Bureaucracy
Factors that a business is able to control to prevent it from failing = ???
External factors
Economic conditions
Seasonal factors
Internal factors
A business that is viable and able to continue in business for the foreseeable future =
Going liquidation
Going concern
Going margin
Going volume
