WorksheetsFinance Quiz
Total questions: 1
Worksheet time: 44mins
Which of the following is NOT one of the main financial reporting documents?
Income statement
Balance sheet
Cash flow statement
Budget report
What is another name for the income statement?
Profit and loss statement
Balance sheet
Cash flow statement
Financial report
Which fictional business is used in the resource to demonstrate the application of financial terms?
Cupcake Pi
Bakery Bliss
Sweet Treats
Cupcake Delight
Who is the sole trader and founder of Cupcake Pi?
Sid
Sara
John
Mary
What is Sid's role at Cupcake Pi?
Marketing Manager
Finance Manager
Master Baker
Sales Manager
How much is Sid paid per year to produce the cupcakes?
£15k
£20k
£25k
£30k
What responsibilities does Sara have at Cupcake Pi?
Producing cupcakes
Looking after finances, sales, and marketing
Customer service
Delivery management
How much does Sara pay herself per year?
£15k
£20k
£25k
£30k
What is the definition of an accounting period?
The timeframe of the set of accounts to be reported on.
The total revenue generated in a year.
The period when taxes are filed.
The duration of a company's fiscal policy.
When does the financial year end for Cupcake Pi?
01/01/20XX
31/12/20XX
01/07/20XX
30/06/20XX
What is the duration of the annual accounting period for Cupcake Pi?
6 months
9 months
12 months
18 months
What do sales turnover/revenues mean in a business context?
The total expenses of a business
The money that comes into a business as a result of trading activities
The number of employees in a business
The total assets of a business
What is the business income stream referred to in the document?
Sales turnover/revenues
Business expenses
Employee salaries
Business assets
What is the sales revenue level for Cupcake Pi mentioned in the document?
£10,000 per month
£12,000 per month
£14,000 per month
£16,000 per month
What does Sara create for the year to record sales revenues?
Balance sheet
Income statement
Cash flow statement
Budget report
What is an income statement?
A. A document that shows the assets and liabilities of a business.
B. A financial document that shows the income and expenditure of a business.
C. A report that details the marketing strategies of a business.
D. A statement that lists the employees of a business.
What does an income statement help determine for a business?
A. The number of employees.
B. The marketing strategies.
C. The trading profit or loss.
D. The customer satisfaction level.
For what period is the income statement of Cupcake Pi prepared?
A. 1st Jan 20X2 - 31st Dec 20X2
B. 1st Jan 20X1 - 31st Dec 20X1
C. 1st Jan 20X3 - 31st Dec 20X3
D. 1st Jan 20X4 - 31st Dec 20X4
What is the total sales revenue for Cupcake Pi in the given period?
A. £140,000
B. £150,000
C. £168,000
D. £180,000
How many months of sales are included in the income statement for Cupcake Pi?
A. 6 months
B. 9 months
C. 12 months
D. 18 months
What are the costs of a business?
The revenue generated by the business
The expenses or expenditure of the business
The profit made by the business
The investments made by the business
Which of the following is an example of a fixed cost?
Raw materials
Paper cases
Rent
Packaging
What is a characteristic of variable costs?
They never change regardless of production levels
They change with the number of units produced
They are always higher than fixed costs
They are not related to production
Why is managing the costs of a business important?
To ensure profits are made
To increase the number of employees
To reduce the quality of products
To expand the business location
What term is used to describe the expenses of a business?
Revenue
Costs/expenditure/overheads
Profit
Assets
What does the income statement allocate to a specific section in the document?
Revenue
Direct costs of sales
Profit
Assets
What is the opening stock value of raw materials for Cupcake Pi?
£12,000
£90,000
£8,000
£100,000
How much did Cupcake Pi spend on raw materials over the year?
£8,000
£12,000
£100,000
£90,000
What is the closing stock value of raw materials still held at year end for Cupcake Pi?
£8,000
£12,000
£90,000
£100,000
Cupcake Pi’s direct costs for raw materials is also considered what type of cost?
Fixed cost
Sunk cost
Variable cost
Opportunity cost
What is the term used for allocating direct costs to the production they belong to?
Gross Profit
Net Income
Cost of Goods Sold (COGS)
Operating Expenses
What is the total cost of goods sold for Cupcake Pi from 1st Jan 20X2 to 1st December 20X2?
£8,000
£90,000
£12,000
£86,000
What is the amount of raw material purchases for Cupcake Pi in the given period?
£8,000
£90,000
£98,000
£12,000
What is the closing stock value for Cupcake Pi in the given period?
£8,000
£90,000
£12,000
£86,000
What is the total stock available for Cupcake Pi in the given period?
£8,000
£90,000
£98,000
£12,000
What is the term given to the profits of a business after direct costs are taken away but before taxes and dividends are paid?
Net profit
Gross profit
Operating profit
Revenue
If a business has total sales revenues of £168,000 and the cost of goods sold is £86,000, what is the gross profit?
£254,000
£82,000
£86,000
£168,000
What type of costs does the income statement not allocate specifically to production or sales?
Operating costs
Fixed costs
Variable costs
Direct costs
What is the total amount of wages listed in Cupcake Pi's income statement?
£5,000
£12,000
£40,000
£8,400
How much does Cupcake Pi spend on the delivery van lease according to the income statement?
£40,000
£5,000
£12,000
£8,400
What type of costs are Cupcake Pi's overall costs considered to be?
Variable costs
Direct costs
Fixed costs
Indirect costs
What is the total amount of other expenses listed in the income statement?
£40,000
£5,000
£65,400
£12,000
Which of the following is NOT listed as an expense in the income statement?
Wages
Delivery van lease
Rent and rates
Marketing
What term is sometimes used to refer to costs in a business?
Revenues
Overheads
Assets
Liabilities
How much is the expense for energy according to the income statement?
£40,000
£5,000
£12,000
£8,400
Why is it important for the owners of a business to use consistent headings in every accounting period?
To increase profits
To make comparisons year on year
To reduce expenses
To attract investors
What is the total sales revenue for Cupcake Pi in the income statement for the period 1st Jan 20X1–31st March 20X1?
£86,000
£65,400
£168,000
£16,600
What is the gross profit for Cupcake Pi in the income statement for the period 1st Jan 20X1–31st March 20X1?
£86,000
£82,000
£65,400
£16,600
What is the amount of other expenses for Cupcake Pi in the income statement for the period 1st Jan 20X1–31st March 20X1?
£86,000
£82,000
£65,400
£16,600
What is the net profit for Cupcake Pi in the income statement for the period 1st Jan 20X1–31st March 20X1?
£86,000
£82,000
£65,400
£16,600
What is the term given to the profits of a business after all costs, taxes, and (if relevant) dividends are paid?
Gross profit
Net profit
Operating profit
Revenue
If a business has a gross profit of £82,000 and other expenses of £65,400, what is the net profit before taxes?
£16,600
£13,280
£82,000
£65,400
What is the net profit if the gross profit is £82,000, other expenses are £65,400, and taxes are 20%?
£16,600
£13,280
£3,320
£65,400
What is the total sales revenue for Cupcake Pi for the period 1st Jan 20X1–31st March 20X1?
£86,000
£65,400
£168,000
£82,000
What is the gross profit for Cupcake Pi for the period 1st Jan 20X1–31st March 20X1?
£65,400
£82,000
£16,600
£13,280
How much are the other expenses for Cupcake Pi for the period 1st Jan 20X1–31st March 20X1?
£86,000
£65,400
£3,320
£16,600
What is the net income (net profit) for Cupcake Pi for the period 1st Jan 20X1–31st March 20X1?
£16,600
£82,000
£13,280
£3,320
What is the amount of taxes paid by Cupcake Pi at a rate of 20% for the period 1st Jan 20X1–31st March 20X1?
£3,320
£65,400
£16,600
£86,000
What does a cash flow forecast predict?
The total amount of money being transferred into and out of a business.
Potential cash flow in the future based on financial objectives.
The real cash flow position of the business in an accounting period.
The profit of the business.
Which financial document shows the total amount of money being transferred into and out of a business?
Cash flow forecast
Cash flow statement
Cash flow
Profit and loss statement
What does a cash flow statement demonstrate?
The total amount of money being transferred into and out of a business.
Potential cash flow in the future based on financial objectives.
The real cash flow position of the business in an accounting period.
The profit of the business.
What does positive cash flow mean for a business?
The business is in an overdraft (debt) situation.
The business has money in the bank.
The business is making a profit.
The business is breaking even.
What does negative cash flow indicate?
The business is making a profit.
The business is breaking even.
The business is in an overdraft (debt) situation.
The business has money in the bank.
What was the total expenditure for Cupcake Pi in January?
£27,949
£12,950
£12,951
£53,850
How much did Sara spend on purchasing a new industrial oven and mixer in January?
£3,000
£15,000
£22,500
£1,250
What was the total rent on the unit for Q1?
£1,000
£2,000
£3,000
£4,000
How much did Cupcake Pi spend on raw materials in February?
£7,500
£15,000
£22,500
£1,250
What was the total expenditure on energy for Q1?
£700
£1,400
£2,100
£2,800
What was the total expenditure for Cupcake Pi in Q1?
£27,949
£12,950
£12,951
£53,850
What was the bank balance brought forward in January for Cupcake Pi?
£14,000
£1,051
£15,000
£2,101
What was the total income in the bank for February?
£15,051
£14,000
£12,950
£2,101
What were the total expenses in March?
£14,000
£12,950
£12,951
£15,051
What was the cash in bank at the end of March?
£1,051
£2,101
£3,150
£15,000
How much were the sales in January?
£15,000
£14,000
£2,101
£27,949
What is the total income for the month of March?
£2,000
£12,000
£32,000
£14,000
How long do customers (supermarkets) take to pay after cupcakes are delivered?
7 days
14 days
30 days
60 days
When are raw materials orders paid?
At the end of the same week deliveries are received
30 days after deliveries are received
14 days after deliveries are received
At the beginning of the next month
What is the owner's capital for the month of January?
£0
£14,000
£15,000
£2,000
What does the document suggest about the business's cash flow?
Money is coming in faster than it is going out
Money is coming in slower than it is going out
Money is coming in at the same rate as it is going out
The business is not profitable
What is cash flow?
The net flow of money in/out of the business.
The amount of money left over after all expenses are paid.
The total revenue generated by the business.
The total expenses incurred by the business.
What does the cash flow forecast for the full year show if sales/expenses don’t change?
A bank balance at December 31st of £12,600.
A net income of £13,280.
A total revenue of £15,000.
A total expense of £10,000.
What is profit?
The amount of money left over after all expenses are paid.
The net flow of money in/out of the business.
The total revenue generated by the business.
The total expenses incurred by the business.
What does the income statement at the end of the year show?
Net income (net profit) of £13,280.
A bank balance of £12,600.
Total revenue of £15,000.
Total expenses of £10,000.
Why is it important to know the difference between cash flow and profit?
Because the income of the business does not mirror its outgoings.
Because they are the same thing.
Because they both represent total revenue.
Because they both represent total expenses.
