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WorksheetsA level business edexcel year 1 revision
Total questions: 15
Worksheet time: 7mins
Why is stock (inventory) excluded from the acid test ratio ?
it is easy to sell at full value (quickly)
it makes the calculation difficult
it cannot be valued
it may not be easy to sell at full value (quickly)
Why are receivables included in current assets ?
They are customers who will pay soon
They are suppliers
They are long-term loans
They are returned stock
Why are payables included in current liabilities ?
They are long term loans
They have to be paid within the year
They have to be paid after the current year
Price elasticity of demand topic:
If PED = -0.5, then
a 10 % price change causes a 20 % change in demand
a 10 % price change causes a 10 % change in demand
a 10 % price change causes a 5 % change in demand
Breakeven topic:
Why is the fixed cost line horizontal ?
because it is easier to draw that way
because it always starts at 100
because fixed costs are unaffected by output changes
because fixed costs are affected by output changes
Why might a business loan be preferred to selling shares as a source of finance ?
loan repayments only made if profit made
loan repayments are forever
loans have an agreed end date
the business is very risky
Why is the average cost of production reducing ?
selling price is reducing
demand is falling
fixed costs are spread over a smaller output
fixed costs are spread over a larger output
Missing term =
Operating expenses
Cost of goods sold
Interest charges
Current assets
breakeven = 200 units of output
breakeven = 300 units of output
breakeven = 400 units of output
breakeven = 600 units of output
Selling price = £20 per unit
Selling price = £30 per unit
Selling price = £25 per unit
Selling price = £50 per unit
variable cost per unit = £5
variable cost per unit = £10
variable cost per unit = £15
variable cost per unit = £20
Fixed costs = £7000
Fixed costs = £6000
Fixed costs = £5000
Fixed costs = £4000
Why might a price cut lead to higher total revenue ?
if demand for the product is price inelastic
if demand for the product is price elastic
Which type of business would still survive with low capacity utilisation ?
if fixed costs are a large proportion of total costs
if fixed costs are a small proportion of total costs
(Exchange rate topic) SPICED =
🤔 Send Pound Into Certain Early Decline
🤔 Spend Pounds In Confidence Easy Debt
🤔 Send Pounds In Confidential Envelope Directly
🤔 Strong Pound Imports Cheaper Exports Dearer
