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Component 3 - Financial Documents

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

What is a financial statement?

a)

Financial statements show the money out of a business

b)

Financial statements are formal records of the financial activities and position of a business, person, or other entity.

c)

Financial statements are the records of a business

d)

Financial statements show all the money in the business

2.

What is turnover/revenue?

a)

How much a business is earning on the sidelines

b)

the amount derived from the provision of goods and services AFTER deduction of trade discounts, value added tax (VAT).

c)

money going out of a business

d)

the amount derived from the provision of goods and services BEFORE deduction of trade discounts, value added tax (VAT).

3.

What is the cost of sales?

a)

This covers all the expenses of the business

b)

direct costs of producing the goods sold by a company

c)

the cost of how much it is to pay for products

d)

indirect costs of producing the goods sold by a company

4.

What is gross profit?

a)

Money that you get to be overall profitable

b)

the amount of a business’s net income that is kept within its accounts

c)

Total Revenue – Total Business Expenses

d)

profit a company makes after deducting the costs associated with making and selling its product

5.

What is gross profit?

a)

Money that you get to be overall profitable

b)

the amount of a business’s net income that is kept within its accounts

c)

Total Revenue – Total Business Expenses

d)

profit a company makes after deducting the costs associated with making and selling its product

6.

What is retained profit?

a)

Money that you get to be overall profitable

b)

the amount of a business’s net income that is kept within its accounts

c)

Total Revenue – Total Business Expenses

d)

profit a company makes after deducting the costs associated with making and selling its product

7.

What are business expenses?

a)

money spent, or costs incurred, by a business in their effort to generate revenues

b)

money spent or costs incurred on the products

c)

Money earned from selling products or services

d)

Money that works negatively and is not investable

8.

What is a fixed asset?

a)

a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

b)

short-term financial obligations that are due within one year

c)

represent all the assets of a company that are expected to be conveniently sold, consumed

d)

obligations of a company that are due more than one year in the future

9.

What is a current asset?

a)

a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

b)

short-term financial obligations that are due within one year

c)

represent all the assets of a company that are expected to be conveniently sold, consumed

d)

obligations of a company that are due more than one year in the future

10.

What is a current liability?

a)

a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

b)

short-term financial obligations that are due within one year

c)

represent all the assets of a company that are expected to be conveniently sold, consumed

d)

obligations of a company that are due more than one year in the future

11.

What is a long term liability?

a)

a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

b)

short-term financial obligations that are due within one year

c)

represent all the assets of a company that are expected to be conveniently sold, consumed

d)

obligations of a company that are due more than one year in the future

12.

A card which enables payments for goods and services to be deferred for a period of one month is called ___________.

a)

Cash

b)

Debit Card

c)

Credit Card

d)

Direct Debit

13.

Which form of payment gives flexibility and is most suitable for small purchases?

a)

Cash

b)

Debit Card

c)

Credit Card

d)

Direct Debit

14.

Which type of payment allows people to pay online or via their smartphones?

a)

Debit Card

b)

Credit Card

c)

Direct Debit

d)

Payment Technologies