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WorksheetsFinance AQA yr 1 Jan 6
Total questions: 20
Worksheet time: 7mins
Which functional objective relates to production (factory) ?
maximise sales revenue
increase customer loyalty
improve efficiency
improve all staff morale
The M in SMART objectives (targets) :
manageable
motivating
modest
measurable
Which financial objective is more likely to involve a price cut ?
sales maximisation
revenue maximisation
Setting an objective to reduce material costs will :
reduce fixed costs
reduce variable costs
decrease profit
Operating profit =
gross profit - cost of goods sold
gross profit + cost of goods sold
gross profit - expenses
revenue - cost of goods sold
Overhead expenses are similar to :
variable costs
fixed costs
Which is correct ?
Revenue
- Cost of goods sold
= Gross profit
- Expenses
= Operating profit
- Interest and tax
= (Net) profit for year
Revenue
- Expenses
= Gross profit
- Cost of goods sold
= Operating profit
- Interest and tax
= (Net) profit for year
Company A : profit = £30m, capital employed = £100m
Company B : profit = £45m, capital employed = £120m
A is more profitable
B is more profitable
no difference
gross profit margin formula =
gross profit + revenue x 100
gross profit / revenue x 100
gross profit x revenue x 100
gross profit - revenue x 100
operating profit margin = operating profit x 100
?
expenses
cost of goods sold
capital employed
revenue
Comparing a business to its competitor :
intra-firm comparison
Inter-firm comparison
Improve profit by :
increasing costs
increasing prices
selling less volume
making less use of factory capacity
Internal factors affecting profitability of a car maker:
Interest rates on loans
New competitors
Worker motivation and productivity
Consumer income and spending
Net cashflow =
Cash inflow + cash outflow
Cash inflow - cash outflow
closing balance (in cashflow forecast) =
opening balance + net cashflow
opening balance - net cashflow
opening balance x net cashflow
Payables =
Customers who owe the firm money
Suppliers that the firm owes money to
Receivables =
credit customers
suppliers trade credit
Working capital cycle : which is correct ?
💰buy materials
💰product made
💰product sold
💰cash increases
💰buy materials
💰product sold
💰product made
💰cash increases
Is cash the same as profit ?
yes
no
Why is cash different from profit ?
all customers pay immediately
some customers pay late
