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BTEC Business - Unit 3 Personal & Business Finance SUMMARY ASSESSMENT Flashcards | StudBud
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BTEC Business - Unit 3 Personal & Business Finance SUMMARY ASSESSMENT
BTEC Business - Unit 3 Personal & Business Finance SUMMARY ASSESSMENT
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BTEC Business - Unit 3 - Finance (exam unit) #btecbusiness #unit3
Flashcards
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Questions
38
Answers
1
From top to bottom, which is the correct order for a cash flow forecast?
Outflows, Inflows, Bank Balance
Revenue, Cost of sales, Expenses
Inflows, Outflows, Net Flows, Bank Balance
Bank Balance, Inflows, Outflows
2
How often are start-up costs usually paid?
never
twice
monthly
once
3
Which type of costs change depending on output?
Variable
Start-up
Operating
Fixed
4
A cash flow forecast states how much profit a business is making......
True
False
5
A business pays their shareholders in the form of ......
Sale of assets
Free products
Dividends
Gold
6
The costs a business has to pay out when setting up is known as?
Operating costs
Start-up costs
Variable costs
Fixed costs
7
If Burt sells 50 cans of CocaCola @ 60p per can, how much revenue has he received?
£40.00
£30.00
£35.00
£25.00
8
Which of the following is not a golden rule of Cash flow?
It tells us NOTHING about profit
Closing balance of 1 month is the opening bal of next month
A business is bankrupt when it has a negative flow
Money is only recorded when cash changes hands
9
What are operating costs also known as?
Variable costs
Start-up costs
Running costs
Fixed Costs
10
Something a business owes is known as a .......
liability
net liabilities
capital
asset
11
Break even: what would happen if total costs decreases?
break even point is lower
margin of safety decreases
margin of safety increases
break even point is higher
12
A statement of comprehensive income is usually produced to show business activity over ......
Since the first day of trading
The last week
The last year
The last month
13
What is the equation to work out total costs?
Fixed Costs + Variable Costs
Fixed Costs X Variable Costs
Fixed Costs - Variable Costs
Fixed Costs / Variable Costs
14
What is at the top of a statement of comprehensive income?
Cost of sales
Sales Turnover
Income from sales
Revenue
15
Businesses use break even analysis .....
to increase profit
because it's a legal requirement
to see how much profit they will make
to assess business propositions
16
What are the two types of expenditure?
Capital and Revenue
Sales and Cost
Cost and Revenue
Capital and Cost
17
Net Current Assets are also known as ........
Grants
Capital
Working Capital
Current Liabilities
18
What is the equation for revenue?
R = P x Q
Costs - Revenue
R = fixed + variable costs
R = Q x P
19
An example of an asset would be .....
Bank Loan
Vehicles
Cash
Creditor
20
Put simply, Revenue is the money .......
coming 'in' to the business
'leaving' the business
a business loss
a business has to pay
21
Examples of cash outflows include ...
, Payment to suppliers, Rent, Revenue
Payment to suppliers, Rent, Sale of an asset
Rent, Salaries, Power
Power, Rent, Grants
22
Revenue - Cost of Sales = ?
Gross profit
Net profit
Expenses
Margin of safety
23
What does the term liquidity mean?
It's a measure of how much capital a shareholder invested
How much a business spends on utilities
How many liabilities a business has
The ability to turn assets into cash
24
............. is a picture of a company’s financial situation at a moment in time – a snap shot
Profit and loss account
Statement of Financial position
Cash flow forecast
Break even analysis
25
It is a legal requirement to produce a Balance Sheet for
ALL
businesses
True
False
26
What is a profit and loss account also known as?
Balance sheet
Statement of comprehansive income
Statement of financial position
Cash flow forecast
27
Examples of cash inflows include:
Sales of products, Leasing, Grants
Leasing, Grants, Rent
Grants, Leasing, Wages
Sales of products, Leasing, Advertising
28
Which of the following do you not need to know in order to complete a break even analysis?
fixed costs
selling price
variable costs
start-up costs
29
Net Assets = Capital Employed
True
False
30
Using a restaurant as an example, which of the following are examples of variable costs?
Washing up liquid, napkins, drinks
Food, Phone bill
Phone bill, Cutlery
Food, New cooker
31
Which term is being defined: 'earned by a business by selling either goods or services'
Costs
Revenue
Break Even
Turnover
32
In terms of expenditure, which of the following is incorrect?
Expenditure can be split into 2 types
Expenditure is all of the money a business spends
Having lots of expenditure will help to make more profit
Businesses have to spend money to succeed
33
Break even: what would happen if the volume of sales is increased?
The margin of safety decreases
Break even point is lower
Break even point is higher
The margin of safety increases
34
Which of the following is not a reason to create a cash flow forecast?
Businesses can decide if they need to invest more or less
Businesses can plan for the future (expand or shrink)
Banks can see how money is flowing in the business.
To predict levels of profit
35
Gross Profit - ? = Operating Profit
Cost of sales
Expenses
Loss
Fixed assets
36
Something a business owns, with an expected lifespan longer than 12 months is a ........
Long term liability
Non-current asset
Current liability
Current asset
37
When a business is owed money by somebody, they are known as a ..........
Debtor
Creditor
38
Which of the following is the correct definition for fixed costs?
remain fixed
costs that change depending on output
stay the same
costs that don't change with output
