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WorksheetsS3 Accounts Introduction Quiz
Total questions: 24
Worksheet time: 12mins
What is the primary purpose of accounting in a business?
To hire employees
To keep track of all financial transactions
To create advertisements
To purchase inventory
Which of the following is NOT a type of business organization mentioned in the image on page 1?
Sole Trader
Cooperative
Private Limited Companies
Social Enterprise
What does a business record as sales?
Money spent on inventory
Money spent on wages
Money received from customers
Money spent on advertising
According to the image on page 1, which type of business organization aims not to make a profit but to serve the local community?
Private Limited Companies
National Government
Non-profit making
Sole Trader
What must a business pay for besides inventory?
Only wages and rent
Products, services, and advertising
Only products and services
Only advertising and postage
What is a sole trader in the context of business?
A type of partnership
A corporation
A business owned and managed by one person
A non-profit organization
What is another term for the money invested in a sole trader business?
Debt
Liability
Equity
Expense
Which of the following is an advantage of being a sole trader?
Unlimited liability
Need to work long hours
Complete control over decisions
Difficulty in getting money for expansion
What is a potential disadvantage of being a sole trader?
Easy setup
Keeping all the profits
Having unlimited liability
No need for accountants
What is the term used to describe the money that a sole trader invests in their business when setting it up?
Debt
Equity
Loan
Grant
Which of the following is NOT a source of funding for a sole trader starting a business?
Own Savings
Start-up Grant
Inheritance
Bank Loan
What is a common condition associated with a start-up grant for a sole trader?
No need to repay
High interest rates
Immediate repayment
Collateral required
Which payment method is NOT listed as a way for customers to pay for goods or services in a sole trader's business?
Cash
Cheque
Bitcoin
PayPal
What must a sole trader consider about their customers when running their business?
How customers will receive refunds
How customers will pay for goods or services
How to avoid customers altogether
How to give customers free products
What is the primary function of cash in transactions?
To provide loans
To buy goods and services
To collect taxes
To pay interest
Which of the following is a characteristic of using cheques?
No need for a bank account
Instant transfer of funds
Requires sufficient funds in the account
Unlimited transaction amount
What information is necessary to complete a bank transfer?
Credit score of the recipient
Sort code, account number, and recipient's name
Physical address of the recipient
Recipient's employment details
What is the maximum amount typically allowed for a contactless payment with a debit card?
£50
£100
£200
£500
How does a credit card differ from a debit card in terms of payment completion?
The payment is deducted from a linked bank account immediately.
The retailer is paid by the credit card company at a later date.
The card does not need to be linked to a bank account.
The payment is always in cash.
What is a standing order in banking terms?
A request to stop a payment
An instruction to pay a fixed amount at regular intervals
A one-time payment authorization
A form to open a new bank account
Who controls the payments in a direct debit arrangement?
The bank receiving the payment
The customer receiving the service
The organisation collecting the payment
The government agency
What is a digital wallet?
A physical wallet that holds digital currencies
A software that allows storing and managing cryptocurrency
An app linked to bank accounts for various payment forms
A type of credit card
Which of the following is an example of a digital wallet?
PayPal
Visa
MasterCard
Apple/Google Pay
How can PayPal be used in business transactions?
To physically store money
To issue refunds only
To send and receive payments globally
To track inventory
