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WorksheetsFinance Quiz Session 7
Total questions: 11
Worksheet time: 6mins
What are the three main sources of money in a business?
Sales, External Investment, Internal Investment
Debt, Marketing Campaigns, Growth
Start-up, Working Capital, Leasing
Business Angels, Share Capital, Trade Credit
When might a business need extra finance?
Start-up, Growth, Working Capital
Debt, Unforeseen Circumstances, Marketing Campaigns
Crowd Funding, Business Angels, Share Capital
Leasing, Other Businesses, Trade Credit
What is the definition of start-up costs?
The costs incurred in the day-to-day running of a business
Costs that don't change with the number of products sold
The costs incurred when setting up a business
Costs that can be traced directly to the production of a specific product
What are fixed costs?
The costs incurred in the day-to-day running of a business
Costs that don't change with the number of products sold
The costs incurred when setting up a business
Costs that can be traced directly to the production of a specific product
What are variable costs?
The costs incurred in the day-to-day running of a business
Costs that don't change with the number of products sold
The costs incurred when setting up a business
Costs that can be traced directly to the production of a specific product
What is the formula for calculating profit?
Revenue - Costs = Profit
Costs - Revenue = Profit
Profit - Costs = Revenue
Costs - Profit = Revenue
What is the purpose of a cash flow forecast?
To predict the future money in and out of a business
To calculate the break-even point
To monitor and control budgets
To track sales and revenue
What are the benefits of budgeting?
Stops companies from spending too much and increases profits
Allows unnecessary spending and reduces flexibility
Creates a culture of saving and limits flexibility
Reduces unnecessary spending and provides a culture of saving
How do you calculate closing balance?
Total cash available + cash outflows
Opening balance + Net cash flow
Opening balance - Net cash flow
None of the above
Which of the following are uses of cash flow forecasting?
The opportunity cost of spending time doing the forecast
It can help a business to get a bank loan
Inaccuracies caused by unexpected events
Being able to plan spending so you a can meet your debt obligations
Which of the 2 following are limitations of cash flow forecasting?
It is only a forecast and so may change
A business will have to keep updating their forecast reflecting changes as they happen
A forecast can help a business plan
Can identify when spending should be delayed
