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WorksheetsFinance Revision
Total questions: 13
Worksheet time: 10mins
The benefits to business banking customers of commercial mortgages include:
Ownership of business premises
Short-term financing
High liquidity
No interest payments
Describe the benefits to business banking customers of asset finance
No need for colleterial
High interest rates
Immediate of assets
Preservation of working capital
Which of the following is true about both bank loans and government grants?
Both are internal sources of finance
Both have certain requirements to be met before finance is given
Both require no repayment
Both are paid in monthly instalments
Which statement is true about hire purchase?
Involves renting an asset
Return the asset at the end of the agreement
Own the asset at the end of the agreement
Does not involve monthly payments
Which of the following is true about both leasing and hire purchase?
Both allow an organisation to use an asset without large upfront payments
Both are free of cost in the long term.
Both require owning the asset immediately
Both involve no monthly payments
Which of the following is NOT true about hire purchase (HP)?
Involves renting the asset
Own the asset at the end of the HP agreement term
Can be expensive in the long term
Is paying for the asset in monthly instalments
Which of the following is NOT a feature of a government grant?
Does not have to be repaid
Can get it again and again.
Is often only 'one-off'
Is an external sources of finance
What does 'opening inventory' refer to?
The value of inventory the business owns at the beginning of the year.
The amount of goods returned to the business by customers.
The value of inventory the business owns at the end of the year.
The amount spent on raw materials/products.
What does 'gross-profit' mean?
The sales revenue minus the cost of sales.
The overall profit or loss for the year.
The amount spent on raw materials /products.
The amount of goods returned goods returned to the business by customers.
Which formula is accepted as correct for calculating gross profit (GP)?
Sales Revenue - SR
Cost of Sales - COS
GR = SR + COS
GP = SR - COS
GP = COS - SR
GP = SR /COS
Which type of account allows you to instantly access funds?
Savings Account
Fixed Deposit Account
Current Account
Recurring Deposit Account
What is a characteristic of commercial mortgages?
Short-term loans.
Longer terms with lower interest rates.
High interest rates.
No interest rates.
What happens after the final payment in asset finance?
The asset is retuned.
The asset is sold.
The asset is owned by the business.
The asset is leased.
