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WorksheetsHigher Business Management Finance
Total questions: 15
Worksheet time: 11mins
Within which financial document would you find CURRENT LIABILITIES?
Cash budget
Cash flow
Statement of Financial Position
Income Statement
Which financial statement would list both GROSS PROFIT and PROFIT FOR THE YEAR?
Cash budget
Statement of financial position
Income statement
Items owned by a business such as property or machienry which are unlikely to change or be sold in the next 12 months.
Non-current liabilities
Current liabilities
Non-current assets
current assets
A reduction in GROSS PROFIT could be caused by... (select all that apply)
An increase in EXPENSES
An increase in the COST OF SALES
A reduction in SALES REVENUE
A reduction in the COST OF SALES
What is WORKING EQUITY? Select the statements that apply
Current assets less current liabilities
Non current assets less non current liabilities
An indication of how easily a business can pay short-term debt
An indication of how quickly a business will be paid by its debtors
NON-CURRENT LIABILITIES are...
Long term debts that a business owes
A bank overdraft
Short term debts that a business owes
Trade receivables
Money owed by a business to its creditors is called "Trade (a) "
This RATIO tells us how able a business is to pay its short-term debts.
Gross profit ratio
Current ratio
Return on Equity Employed
Rate of inventory turnover
What options might be good advice for a business whose PROFIT FOR THE YEAR RATIO fell from 30% to 25% from one year to the next? Select all that apply
Reduce expenses by reducing employee numbers
Increase sales revenue by advertising more
Reduce cost of sales by finding cheaper supplier
Increase expenses by hiring more employees
High rate of inventory turnover would tell us that...
Products are selling quickly and are not stored for long
Products are selling slowly and are therefore in storage for a while
True or false. An investor will be pleased to see a LOW Return on Equity Employed figure
True
False
Which ratio tells us how able an organisation is to pay short term debts without havin gto sell its inventory (stock)?
Gross profit ratio
Return on equity employed
current ratio
Acid test ratio
True or false. NET PROFIT is also known as PROFIT FOR THE YEAR
True
False
Within which financial document forecasts ahead to determine whether or not a business will have a cash surplus or a cash deficit?
Cash budget
Bank statement
Income statement
Statement of financial position
Which would be positive steps in dealing with a cash flow problem?
Sell some non-current assets (e.g vehicles or machinery)
Run a sales promotion to generate more sales revenue
Negotiate with suppliers to increase the length of time within which payments must be made
Offer a small discount to customers to encourage them paying promptly
All of these
