Finance Management

Question 1

One way to maximise profits is to:

Accepted Answer

All of the above

Question 2

Which one of these is not an External Stakeholder?

Accepted Answer

Managers

Question 3

A Cash Flow Statement shows the movement of:

Accepted Answer

Cash receipts, Cash payments

Question 4

What would the Gross Profit be if Sales was $250 000 and COGS was $100000?

Accepted Answer

$150000

Question 5

Businesses can use borrowings to:

Accepted Answer

All of the above

Question 6

Management of business finance is not a crucial aspect of business success.

Accepted Answer

False

Question 7

A business must have a good credit rating in order to borrow money from lenders.

Accepted Answer

True

Question 8

Which one of these is a deficit?

Accepted Answer

(93000)

Question 9

The Income or Profit and Loss Statement is typically made up of _________categories.

Accepted Answer

5

Question 10

Accounting is a managerial and administrative tool for recording financial transactions.

Accepted Answer

True

Question 11

The End of Financial Year falls on:

Accepted Answer

30th June

Question 12

'Liquidity' describes whether a business has an adequate cash flow.

Accepted Answer

True

Question 13

Which of these are Internal stakeholders?

Accepted Answer

Shareholders, Employees

Question 14

Another name for Income Statement is:

Accepted Answer

All of the above

Question 15

Balance Sheets represent a business'

Accepted Answer

All of the above

Question 16

The 3 Financial Statements are:

Accepted Answer

Cash Flow, Balance Sheet & Profit and Loss

Question 17

Given that Gross Profit is $150000 and Sales is $300000, calculate the Gross Profit Ratio.

Accepted Answer

50%

Question 18

This picture shows:

Accepted Answer

Cash Outflow, Cash Inflow

Question 19

A business has responsibility to both its internal and external stakeholders

Accepted Answer

True

Question 20

What is the Balance Sheet equation?

Accepted Answer

Assets = Liabilities + Owner's Equity

Questions 20