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Intro to Finance and Accounting Workshop 2

Total questions: 10

Worksheet time: 14mins

Name
Class
Date
1.

Depreciation is:

a)

paying back money you have borrowed

b)

loss of tangible fixed assets

c)

the cost of a loan

2.

Redemption is

a)

The loss of value of tangible fixed assets

b)

Paying back money you have borrowed

c)

The cost of a loan

3.

The item "redemption" can be found as an account on the

a)

Balance sheet

b)

Income statement

c)

Cash flow statement

d)

All three statements

4.

A cash flow statement consists out of three parts:

a)

Financing, investing, operating activities

b)

Operating, business, income activities

c)

Receiving, operating, paying activities

5.

The item 'purchased goods' will be found on:

a)

Only the income statement

b)

Only the cash flow statement

c)

Both the income statement and the cash flow statement

6.

For 2020 it is expected that 6,000 units will be sold equally throughout the year for a price of € 10. We give customers two months credit.

What is the sales receipt on the cash flow statement of 2020?

a)

€ 60,000

b)

€ 50,000

c)

€ 10,000

7.

A company pays three months rent in April for the months April, May and June. Rent is € 1,000 a month. The statements show the following end of April:

a)

Balance sheet, Income statement and Cash flow statement show € 3,000 related to rent

b)

Balance sheet shows a prepaid rent of € 2,000, Income statement € 1,000 and cash flow statement € 3,000

c)

Balance sheet shows a prepaid rent of € 2,000, Income statement € 2,000 and cash flow statement € 3,000

8.

Calculate the gross profit margin

a)

20%

b)

18%

c)

55%

d)

45%

9.

The bank loan on January 1 is €100,000. Redemption is €20,000. Interest is 5%. Redemption and interest are paid on July 1. Calculate the interest expense

a)

€4,416.67

b)

€ 4,500

c)

€ 4,583.33

d)

€ 5,000

10.

The bank loan on January 1 is €100,000. Redemption is €20,000. Interest is 5%. Redemption and interest are paid on July 1. Calculate the interest payment

a)

€4,416.67

b)

€ 4,500

c)

€ 4,583.33

d)

€ 5,000