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Business igcse edexcel

Total questions: 17

Worksheet time: 10mins

Name
Class
Date
1.

A Business that breaks even has total revenue of US$5 600 000 and fixed costs of US$2 000 000. Therefore the value of variable cost?

a)

US$ 2 000 000

b)

UD$5 600 000

c)

US$7 600 000

d)

US$3 600 000

2.

A business charges US$25 per unit for its output. Fixed costs are US$1000 000 and variable costs are US$5 per unit. How much should the business produce and sell to break even?

a)

US$ 50 000

b)

Us$20

c)

20 units

d)

50 000 units

3.

A Business breaks even when 5000 Units are produced. If price = US$20 and fixed costs are US$20000, then variable cost per unit is?

a)

US$ 16 per unit

b)

UsS50 per unit

c)

US$ 20 per unit

d)

US$ 4 per unit

4.

An increase in fixed cost will do which of the following?

a)

Shift the break even point to the left

b)

make the total cost function steeper

c)

Shift the break even point to the right

d)

make the total cost function flatter

5.

Wages paid to production workers is an example of which of the following?

a)

Current Asset

b)

Finance cost

c)

Business expense

d)

Cost of sales

6.

A Business has revenue of US$239 500 cost of sales of US$ 154 000 and expenses of US$65 000. therefore, the value of operating profit is?

a)

US$ 20 500

b)

US$ 85 500

c)

US$ 393 500

d)

US$ 239 500

7.

A statement of comprehensive income might be used to do which of the following?

a)

Calculate labour turnover

b)

Help make investment decisions

c)

Measure the value of assets in a business

d)

Calculate the liquidity ratio

8.

Which of the following is a function of profit?

a)

A measure of global economic success

b)

Used to calculate the break even point

c)

Measure of business performance

d)

Measure of labour productivity

9.

Gross profit is equal to which of the following?

a)

Operating profit + Revenue

b)

Revenue - Cost of Sales

c)

Revenue - operating profit

d)

Revenue + Cost of sales

10.

A Business is likely to have sufficient working capital if the current ratio has between which of the following?

a)

0 and 1

b)

1 and 2

c)

1.5 and 2

d)

2 and 3

11.

If Revenue = US$500 000 and operating profit = Us$100 000, the operating profit margin will be ?

a)

20 per cent

b)

10 per cent

c)

5 per cent

d)

500 per cent

12.

The ROCE is given by which formula?

a)

Gross profit / Revenue x 100

b)

Operating profit / Capital Employed x 100

c)

Operating profit / Revenue x 100

d)

Current assets / Current Liabilities

13.

__________________ accounting procedure that checks thoroughly the accuracy of a company's accounts

a)

Reconciliation

b)

Controlling

c)

Auditing

d)

Measuring

14.

The owners of a business may use financial documents to assess a company's?

a)

Current assets

b)

Profitability

c)

Market share

d)

Cash flow position

15.

A bank may use a company's financial documents to help assess?

a)

Labour turnover

b)

Growth potential

c)

Creditworthiness

d)

Product quality

16.

The authenticity of financial documents is checked by?

a)

Suppliers

b)

Shareholders

c)

Auditors

d)

Local authorities

17.

Financial documents might be used to help a business make decisions about which of the following?

a)

Funding

b)

Marketing strategies

c)

Remuneration methods

d)

Effect of changes in exchange rates on the business