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AQA A Level Business Finance Flashcards | StudBud
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AQA A Level Business Finance
AQA A Level Business Finance
23 terms
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A quiz to summarise key learning from Unit 3.5
Flashcards
23 cards
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Practice quiz
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Questions
23
Answers
1
Contribution pays for ...
Variable costs
Profits
Fixed costs
Revenue
2
The proper term for a customer who owes a business money is
A creditor
A debtor
3
Selling debt to improve cash flow is called
Gearing
Overdraft
Sale and leaseback
Debt factoring
4
A profit & loss account is another name for ...
An income statement
A cash flow forecast
A budget
A balance sheet
5
Revenue - what = Gross profit
Expenses
Costs of sales
Fixed costs
Tax
6
Fixed costs / selling price - variable cost =
Profit
Market capitalisation
Capacity utilisation
Break even
7
Which of these is a cause of cash flow problems?
High revenue
Customers paying quickly
Suppliers offering good credit terms
Too much stock
8
Which line is horizontal on a break even graph?
Fixed costs
Sales revenue
Variable costs
Total costs
9
Which budget should a retailer produce first?
Expenses
Sales
Materials
Production
10
Which of these is a revenue objective?
Increase sales by 5% in 6 months
Reduce costs by 20%
Increase investment in fixed assets
Increase profit by £10m
11
The difference between the breakeven point and actual sales is called
Insurance
Safety net
Buffer
Margin of safety
12
Which of these a capex objective?
Reduce spending
Order more stock
Increase employee wages
Invest in fixed assets
13
Operating profit / Capital invested is
Foreman
ROCE
Tyson
Pacquiao
14
When profit is compared to sales, this is called the ...
Breakeven point
ROCE
ROI
Profit margin
15
What is the formula for total contribution?
Total revenue - Total variable costs
Selling price per unit - Variable cost per unit
Total Revenue - Total costs
Fixed costs + Variable costs
16
True or false - Favourable variances are always good for a business
True
False
17
Which of these would improve profit - choose all that apply
Increasing selling price
Increasing capacity utilisation
Improving efficiency
Reducing costs of production
18
Which two elements are found in a financial objective?
How and who
Number and time
When and where
Price and cost
19
True or False - the closing balance of one month becomes the opening balance of the next month
True
False
20
Payables is the money
A business owes to its suppliers
A business is owed by its customers
21
Comparing a budget against actual income or expenses is called a
Variance analysis
Income statement
Cashflow forecast
Balance sheet
22
Net monthly cash flow is the difference between ...
Income and expenditure
Fixed and variable costs
Inflows and outflows
Sales and costs
23
If a business is financed by over 50% debt, it is ...
Bankrupt
Low geared
Highly geared
Insolvent
