WorksheetsBasic Financial Plan
Total questions: 31
Worksheet time: 18mins
Why is understanding breakeven important for businesses?
To determine employee roles
To set marketing goals
To make informed pricing and sales decisions
To choose office locations
What does breakeven analysis help assess besides price changes?
Changes in costs
Employee turnover
Customer loyalty
Brand reputation
Which statement is true about breakeven analysis?
It is a useful planning tool.
It is only applicable to startups.
It is irrelevant to financial success.
It is used to predict stock market trends.
Axel Sdn Bhd launched a new food product named Epel. The price of the product is RM 8.00 per pack. The variable and fixed cost of the product are RM 1.50 and RM 10 000 respectively. From the information given, find:
BEP in units
1358 units
1508 units
1538 units
1853 units
An amount of money lost by a business or organization.
LOSS
FINANCIAL STATEMENT
REVENUE
EXPENSES
Written records that convey the business activities and the financial performance of a company, by a business or organization.
LOSS
FINANCIAL STATEMENT
LIABILITIES
EXPENSES
It is the cost of operations that a company incurs to generate revenue.
TANGIBLE ASSET
FINANCIAL STATEMENT
LIABILITIES
EXPENSES
An asset that is not physical in nature.
TANGIBLE ASSET
INTANGIBLE ASSET
BALANCE SHEET
BENEFIT
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
FINANCIAL STATEMENT
REVENUE
PROFIT
EXPENSES
A _____________ is an asset that has a finite monetary value and usually a physical form.
BENEFIT
REVENUE
LIABILITIES
TANGIBLE ASSET
_______________ are any debts your company has, whether it's bank loans, mortgages, unpaid bills or any other sum of money that you owe someone else.
BALANCE SHEETS
EXPENSES
LIABILITIES
TANGIBLE ASSETS
A ____________ is a financial statement that contains details of a company’s assets or liabilities at a specific point in time.
BALANCE SHEET
LIABILITY
TANGIBLE ASSET
REVENUE
Which one of the following items
would fall under the definition of
a liability?
Cash
Debtors
Owner's equity
None of the above
Which of the following equations
properly represents a derivation
of the fundamental accounting
equation?
Assets + liabilities = owner's
equity
Assets = owner's equity
Cash = assets
Assets — liabilities = owner's
equity
Which of the following transaction is NOT a revenue?
Performed a services worth RM3,000 on credit for Aliff and further services worth RM5,500 cash
Purchased RM6,000 worth of drying fuel and RM3,000 worth of machinery lubricants
Received subsidy of RM7,000 and interest of RM4,000
Sold RM9,000 worth of grain crops for cash and a small tractor costing RM12,000 for RM20,000
Which of the following is NOT an example of owner's equity?
Retained earnings
Machinery
Common stock
Plants and equipments
Balance sheet summarizes the (a) of the business at a point in time
Which of the following is a TANGIBLE ASSET?
Patent
Building
Goodwill
Trademark
Which of the following are NOT current liabilities?
i - Investment in fixed deposit
ii - Long term loan
iii - Creditor
iv - Bank overdraft
i and ii
i and iii
ii and iii
iii and iv
What are liabilities?
accounts payable
loans payable
Short-term Investments
taxes owed
wages owed
selling an asset would be an example of
cash inflow
cash outflow
purchasing an asset would be an example of
cash inflow
cash outflow
Why it is important to monitor actual cash flows?
Control the values computed in the cash flow budget
Easier to compute the balance sheet statement
Makes it easy to put together the annual financial statement for businesses.
To make adjustments for cash flow budget next year
A (a) contains estimates of cash flows for a future time period.
Cash inflows come from the following transaction EXCEPT
New loans
Sales
Taxes
Subsidy
Keeping good records of actual cash flows is important for several reasons EXCEPT
Provide useful insight into financial structure of the business and
If cash flow records are recorded and summarizes monthly, the monthly cash flow can be compared with monthly budgeted values at the end of each year.
Provide a good starting point for developing the next annual cash flow budget
Show how the operating, financing, and investing activities combine and interact as sources and uses of cash
How do you calculate net cash flow?
Which of these is the correct definition of net cash flow?
Which of these is a benefit of cashflow forecasting?
Match the key terms to their correct definition
Opening Balance
The amount of money available at the start of a period
Total Inflows
The total amount of money received during a period
Total Outflows
The total amount of money spent during a period
Net Cash Flow
The difference between total inflows and total outflows
Closing Balance
The amount of money available at the end of a period
What does a negative cash flow mean?
The business has more money coming in than going out
The business has more money going out than coming in
The business is making a profit
