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WorksheetsFinancial procedures
Total questions: 15
Worksheet time: 8mins
An organisation has recently set budgets for key areas of the business. How will this help the business?
Identify one reason from the list below.
It will provide financial direction
It will allow large sums to be spent
It will allow financial information to be published
It will give it financial stability
Which documents support effective budget control?
Choose one from below.
Stock lists
Employee contracts
Spreadsheets
Customer mailing lists
Why do organisations need to budget?
Choose one answer.
To inform management decisions
To identify staffing issues
To implement spending cuts
To highlight capital purchases
Why should companies keep records of business travel expenses?
Choose one answer.
For checking travel plans
To inform future bookings
For tax purposes
To provide instructions
An organisation plans to expand its operations but lending conditions are tight. What effect will this have on the organisation?
Choose one answer.
Loan repayments will decrease
Alternative sources of finance will need to be considered
Greater opportunities will exist for product development
Increased spending will be supported
An organisation has purchased new machinery. What term describes this purchased item?
Choose one answer.
Fixed cost
A liability
An asset
Turnover
Interest rates have increased for a company with existing loan agreements. How will this affect the company?
Choose one answer.
Increased morale
Increased customer share
Reduced turnover
Reduced profits
A business is overdrawn at the bank and is experiencing severe cash flow problems due to customers not paying their bills on time. How frequently should the cash flow be monitored?
Choose one answer.
Weekly
Monthly
Quarterly
Annually
External financial compliance regulations require a company to follow which action?
Choose one answer.
Register with Companies House
File company tax returns
Circulate accounts to overseas customers
Advise changes with the Department for Business Innovation and Skills
When customer payment is required what document is sent by the administrator?
Choose one answer
A receipt
A credit note
An invoice
A statement
What method of payment is most likely to be used between businesses?
Choose one answer
Cheque
BACS
Cash on delivery
Exchange of goods
Which document is issued by a buyer to a seller, indicating the types, quantities and agreed prices for products or services?
Choose one answer
Purchase ledger
Purchase requisition
Purchase order
Purchase invoice
Which of the following explains how petty cash is usually handled?
Choose one answer
A small amount of money, managed by a senior manager, to make small purchases which must be balanced with a receipt
A large amount of money, managed by a custodian, to reimburse purchases when balanced with a receipt
A small amount of money, managed by a custodian, to reimburse purchases when balanced with a receipt
A large amount of money, managed by a senior manager, to make small purchases without proof of purchase.
Internal financial compliance requires a company to adhere to which of the following regulations?
Choose one answer
Track income and expenditure
Provide petty cash for office expenses
Pay directors' car parking fines
Instigate and check costs for health and safety improvements
How can material costs be controlled in an organisation?
Choose one answer.
Through team meetings
By employing part-time staff
Through safety and security of storage
By banning trade union membership
