WorksheetsUnit 2 Finance for Business
Total questions: 20
Worksheet time: 7mins
Name
Class
Date
1.
Select one type of expenditure for a scarf shop
a)
Taking out a bank loan
b)
Paying wages to staff
c)
Selling scarves to customers
d)
Displaying accessories
2.
Identify one way a business makes money
a)
Paying back a loan
b)
Selling products to customers
c)
Spending money on a new factory
d)
Buying materials to make products
3.
Identify one example of expenditure
a)
Taking out a bank loan
b)
Receiving interest on savings
c)
Selling goods to customers
d)
Spending money on stock
4.
Identify one example of cash inflow
a)
Buying promotional leaflets
b)
Purchasing raw materials
c)
Selling used machinery
d)
Paying electricity bills
5.
Identify one source of business revenue
a)
Electricity bills paid for running the business
b)
Wages received by staff for the work they do
c)
Payments received from customers
d)
Purchase of inventory (stock)
6.
Select one example of a cash outflow
a)
Product sales
b)
Sale of assets
c)
Stock purchases
d)
Receipt of a loan
7.
What are debts owed by a business that are due to be repaid after a year?
a)
Current liabilities
b)
Long-term liabilities
c)
Current Assets
d)
Fixed Assets
8.
What are debts owed by a business that are due to be repaid within a year?
a)
Current liabilities
b)
Long-term liabilities
c)
Current Assets
d)
Fixed Assets
9.
Jean owns a business making baby clothes. Identify two of her variable costs
a)
Wages for the staff
b)
Insurance for the business
c)
Salary for the production manager
d)
Materials for the baby clothes
e)
Rent for the factory
10.
Identify two start up costs for a manufacturing business
a)
Paying electricity bills
b)
Purchasing a new piece of machinery
c)
Replacing stock used to produce goods
d)
Buying a factory to locate the business
e)
Giving staff commission on sales
11.
Which statement describes an income statement (profit and loss account)?
a)
It shows the total expenses paid over a year
b)
It shows the total cash inflows into a business
c)
It shows what a business owes at a point in time
d)
It shows where a business gets its capital
12.
Alex owns a van that he uses to deliver sandwiches to customers. Where in his accounts should the van be shown?
a)
Net Assets
b)
Working Capital
c)
Current Assets
d)
Fixed Assets
13.
Complete the formula for total cost : Total Costs = Fixed Costs + ?
a)
Marginal Costs
b)
Variable Costs
c)
Operating Costs
d)
Start Up Costs
14.
Identify one source of internal finance
a)
Retained profits from sales
b)
Leasing a piece of machinery
c)
Taking out a bank loan
d)
Offering shares for sale to investors
15.
Identify what happens when the income for a business is higher than the expenditure
a)
It does not achieve breakeven
b)
It increases fixed assets
c)
It makes a profit
d)
It has a negative cashflow
16.
Simone is a market trader selling scarves. The image shows her breakeven chart. What is her breakeven point?
a)
2500 scarves
b)
6000 scarves
c)
4100 scarves
d)
200 scarves
17.
Identify one example of a variable cost for a sandwich shop
a)
Paying rent
b)
Buying a till to record sales
c)
Heating and lighting
d)
Purchase of inventory (stock)
18.
Identify one start up cost for a restaurant
a)
Wages
b)
Rent
c)
Furniture
d)
inventory (stock)
19.
Identify one example of a cash inflow
a)
Repayments on a bank loan
b)
Receiving interest on savings
c)
Paying electricity bills
d)
Purchase of inventory (stock)
20.
Which is the best football team in the world?
a)
Manchester Utd
b)
Manchester City
c)
Real Madrid
d)
Hull City
100 %
