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WorksheetsMr Frayne IGCSE Finance & Numerical Skills
Total questions: 64
Worksheet time: 32mins
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
Which of the following best describes cash?
Notes
Notes and coins
Notes, coins and money in the bank
Profit
What is the total outflow of this company?
37.500 AED
19.000 AED
18.500 AED
12.000 AED
What is the best situation for a company at the end of the month?
Negative cash-flow
Positive cash-flow
Zero balance
None of the above
(a) is the amount of money available at the beginning of the month
Which of these are methods that could be used to improve cash flow.
Reducing costs by buying from a different supplier.
Increasing its revenue by slightly raising its prices.
Selling off some fixed assets.
Paying back all of the refunds it owes customers
Expanding into a new range of products.
Cash flow forecasts can show...
Whether a business will make a profit
Whether a business has sufficient cash to meet their debt obligations
Whether a business will be able to repay a loan
Whether a business has enough shareholders
How do you calculate net cash flow?
Balance brought forward + Cash Inflows
Inflows - Outflows
Total cash available - cash outflows
None of the above
How do you calculate closing balance?
Total cash available + cash outflows
Opening balance + Net cash flow
Opening balance - Net cash flow
None of the above
Money provide to a business for a specific purpose with no interest or cash repayment is a
Grant
Interest free loan
Dividends
Term loan
What is an advantage of an overdraft?
There is never interest
You can pay in smaller installments
Useful for relatively small sums and short term finance
You don't have to pay it back
A long-term loan to buy property is known as a
Lease
Savings account
Mortgage
Overdraft
Which of the following is NOT a source of long-term finance?
Bank Loan
Mortgages
Overdraft
Venture Capital
Owner's savings is an external source of finance
True
False
Which of the following is considered an internal source of finance?
Issuing shares
Bank loan
Selling assets
Loan from family member
venture capital is not just about money
it also provides high returns on investment
it ensures bank secrecy
it provides companies and entrepreneurs with technical and managerial advice
it allows the venture capitalist to have a say in the company decisions as investors get equity in the company
A business loan requires :
endless payments
interest payments
dividend payments
no repayments
What is an advantage of a bank loan?
There will be little or no interest
You can pay in pre-planned instalments
They are quick and easy to arrange
You don't have to pay it back
Numerous people invest small amounts into your business. Often via a website = ???
Squadfunding
Groupfunding
Crowdfunding
Friendfunding
A card that lets you buy things now and pay off later (with interest charges added) = ???
Venture capital
Debit card
Credit card
Crowdfunding
A term used to describe renting assets = ???
Leasing
Trade debtor
Current asset
Working capital
Rent, administrative costs, employee salary are examples of ...
Variable costs
Fixed costs
Costs
Prices
Raw materials, packaging, wages/labour costs are examples of
Total costs
Fixed costs
Variable costs
Benefits
If Wendy sells 50 hot dogs at £2 each. What is her revenue?
£250
£100
£120
£52
(a) are all of the expenses that a business incurs (pays).
The total costs are calculated as the sum of the (a) costs and the variable costs.
(a) costs change directly with output.
Fixed or Variable?
Transport costs
Fixed
Variable
9.35% as a decimal is ???
(a)
Write the decimal as a percent: 0.37
37%
3.7%
0.37%
370%
Express 0.125 as a percentage.
1.25%
0.0125%
0.125%
12.5%
Change 1.4 to a percent.
14
14%
140%
40
How much tip should you leave if you want to tip 23% at Applebee's on a $27.31 bill?
$6.28
$33.59
$21.03
$7.50
What are costs?
the money coming into a business when customers buy a product
the money a business spends on business activities
the money business invests
On a break even chart, which line starts at zero?
Total Revenue
Fixed Costs
Total Costs
Variable Costs
On a break even chart, which line is horizontol?
Total Revenue
Fixed Costs
Total Costs
Variable Costs
On a break even chart, which line starts at fixed costs?
Total Revenue
Fixed Costs
Total Costs
Variable Costs
On a break even chart, where is breakeven?
Total Revenue = Total Costs
Fixed Costs = Total Revenue
Total Costs = Fixed Costs
Variable Costs = Total Revenue
Break Even is measured in
Output
£
On this chart at which point does this business break even?
190
200
$2,000
$1,000
Using this diagram what line is G?
Total Revenue
Variable Costs
Total Costs
Fixed Costs
Using this diagram what line is F?
Total Revenue
Variable Costs
Total Costs
Fixed Costs
If fixed costs are 100, selling price is 10 and the variable costs are 5. What is break-even?
25
20
10
35
If a business's sales double, its variable costs will also likely
remain the same
decrease
double
fall
An option for a firm looking to reduce its breakeven point is to:
Reduce its selling price
Undertake an advertising campaign
Give the staff a pay rise
Buy cheaper raw materials
The difference between the actual output and the breakeven level is known as the:
Buffer zone
Minimum cost line
Current ratio
Margin of safety
Revenue = £100,000
Cost of sales = £50,000
Other expenses = £25,000
What is the gross profit?
£25,000
£50,000
£100,000
£75,000
Gross profit is calculated by...
Revenue - Total Costs
Revenue + Variable Costs
Revenue - Cost of Sales
Revenue - Fixed Costs
