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WorksheetsPersonal and Business Finance LA: A, C AND D
Total questions: 63
Worksheet time: 32mins
Give a feature of a premium account
Withdraw more money than usual
Free Holidays
Exclusive rewards
Exclusive Premium Branch
Benefits of a pre-paid card
Can't go into debt
Pay before hand
Buy now pay later available
Requires no credit check
Which is not a function of money
Legal Tender
Means of exchange
Unit of account
Measure of a commodity
In which life stage may a student loan be most important?
Childhood
Adolescence
Young Adult
Middle Age
In which life stage will you most likely be making regular mortgage payments?
Childhood
Adolescence
Young Adult
Middle Age
In which life stage will you need encouragement to start saving money?
Childhood
Adolescence
Young Adult
Middle Age
Which of these is not a common principle of planning personal finance?
Generate income and savings
Counter the effects of inflation
Maintain a good credit rating
Avoid solvency
'Payment is transferred directly from one bank account to another' describes which method of payment
Electronic Transfer
Credit Card
Direct Debit
Standing Order
'Issued by financial institutions allowing customers to delay payments for goods and services' describes which method of payment
Electronic Transfer
Credit Card
Direct Debit
Standing Order
'An agreement made with a bank to transfer a fixed sum of money to a third part account on a set date and regular basis' describes which method of payment
Electronic Transfer
Credit Card
Direct Debit
Standing Order
'An agreement made with a bank allowing a third party to withdraw money from an account on a set day to pay for goods and services each month' describes which method of payment
Electronic Transfer
Credit Card
Direct Debit
Standing Order
What is an advantage of an overdraft
You can use money you do not have
It has a high interest rate
You can have it posted
You earn interest on the balance
Which current account is most appropriate for someone with a low credit rating?
Standard
Packaged, premium
Basic
Student
Which current account is most appropriate for receiving regular payments and bills?
Standard
Packaged, premium
Basic
Student
Which is not a type of borrowing
Mortgage
Debit Card
Payday Loan
Credit Card
Why should you plan expenditure?
Payback loans
Control pension
To control costs
Pay mortgage
Which is not a feature of a current account
An overdraft limit
Rate of interest paid on positive balances
Standing orders automatically created
Charges on unauthorised overdrafts
Which of the following is a type of saving and investment
Credit Cards
Premium Bonds
Payday Loans
Bit Coin
Which is not a type of saving and investment
Shares
ISA
Deposit and savings account
Personal Loan
Which of the following is a 'reward' of saving money
Can be exciting
Interest payments
No guarantee of return
inflation can reduce the spending power of money saved
Which type of insurance is a legal requirement?
Car
Travel
Pet
Home
Which is not a type of insurance
Health
Home and contents
Pet
Job
Which type of borrowing has the highest interest rate?
Loan
Overdraft
Mortgage
Payday Loan
'Convenient as can be used at any time and place' is an advantage of which method of payment
Store Card
Contactless Card
Mobile Banking
Pre-paid Card
'A system that allows the transfer of payments directly from one bank account to another' describes which method of payment
Mobile Banking
BACS
Store Card
Contactless Card
'Often only accepted for relatively small transactions' is a disadvantage of which method of payment?
Pre-paid Card
Store Card
Contactless Card
Charge Card
'Time delay of the transaction' is a disadvantage of which method of payment?
Cheque
Debit Card
Cash
BACS
'An easy way to make regular payments that vary in amount i.e. utility bills' is an advantage of which method of payment?
Standing Order
Direct Debit
Cheque
Electronic Transfer
'Allows you to use an item immediately but pay for it in installments' is a description of which method of payment
Payday Loan
Credit Card
Hire Purchase
Personal Loan
This is the cash that is generated by the business when it operates successfully
Retained profits
Share capital
Angel investor
Owner savings
Which of the statements about retained profits is false?
You have unlimited amounts of money available
Shareholders and employees could be frustrated because there is less profit to be 'shared out'
You do not have to pay interest
You are free to use it for any purpose
Which of the following statements about bank loans is not true?
Usually used for large amounts of money that need to be paid back over a longer time-frame
Interest rates make the loan more expensive
Easy to get
Usually cheaper than consistently using a bank overdraft
True or false - crowdfunding is usually only used for new business start-ups/concepts and is therefore inappropriate for existing large, profitable businesses
True
False
What of the following is a source of internal finance?
Selling assets
Trade credit
A bank loan
What is the most likely source of finance for a small firm?
A debenture
Issuing shares
A bank loan
What is the most likely source of finance for buying a new IT system?
Mortgage
Factoring
A bank loan
What is an advantage of an overdraft?
There is never interest
You can pay in smaller installments
Useful for relatively small sums and short term finance
You don't have to pay it back
Which of these facts about venture capitalists is NOT true?
Venture capitalists tend to operate in fairly risky markets
Venture capitalists would be paid a share of the profits
Venture capitalists usually provide money only and have no interest in running the business
Venture capitalists usually invest large sums of money
An amount of money that is paid back within an agreed amount of time, with interest
Bank loan
Angel investment
Overdraft
Retained profit
Which of the following is NOT one of the purposes of accounting?
Control
Certification
Recording transactions
Management of the business
Measuring performance
Transactions need to be recorded to
Meet legal requirements
Help a business run smoothly
Produce accurate reports
Create jobs for accountants
Cash sales
Capital income
Revenue income
Mortgage
Capital income
Revenue income
Discount received
Capital income
Revenue income
Loan
Capital income
Revenue income
Credit sales
Capital income
Revenue income
Owner's Capital
Capital income
Revenue income
Shares
Capital income
Revenue income
Purchase of property for new office
Capital Expenditure
Revenue Expenditure
Wages and Salaries of office workers
Capital Expenditure
Revenue Expenditure
Purchase of delivery van
Capital Expenditure
Revenue Expenditure
Payment of Electricity Bill
Capital Expenditure
Revenue Expenditure
Installation of new machinery
Capital Expenditure
Revenue Expenditure
