To calculate total revenue

Selling price per unit x sales volume

This shows the net worth of an organisation at a snapshot in time

Statement of financial position

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Finance Terms AS/A2 Business

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Edexcel AS and A2 revision

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Questions 15

Answers

1
In variance analysis, if sales are higher than budgeted it would be considered...
Adverse
Negative
Positive
Favourable
2
Fixed costs / ? = Break Even Point
Selling price
Units sold
Contribution per unit
Variable costs
3
The measure of a firm’s ability to make profit is called
Profit forecasting
Satisficing
Profitability
Liquidity
4
Which of these is a fixed cost?
Product packaging
Rent
Materials
Ingredients
5
Which is the most liquid asset?
Creditors
Inventories
Cash
The business's factory
6
An example of a current liability
Creditors
Inventories
Cash in the bank
Debtors
7
Total costs is calculated by
The sum of all variable costs
Selling Price per unit x Sales Volume
Fixed Costs + Variable Costs
The sum of all fixed costs.
8
To calculate total revenue
Selling price per unit x sales volume
Variable costs x output
Current assets / current liabilities
All costs subtract all revenue
9
Gross Profit / Revenue X 100 is the formula for
Gross Profit
Acid Test
Gross Profit Margin
Operating Profit Margin
10
Debtors are an example of...
Non-current assets
Current liabilities
Fixed assets
Current assets
11
Current Assets / Current Liabilities is known as
The acid test
Break even
Current ratio
Working capital
12
On a cash flow forecast, where would the opening balance for September be taken from?
September's closing balance
October's closing balance
August's opening balance
August's closing balance
13
This shows the net worth of an organisation at a snapshot in time
Profit and loss account
Break even chart
Statement of financial position
Income statement
14
Total Revenue – Total Costs = ?
Operating Profit
Gross Profit
Negative cash flow
Net Assets Employed
15
A business's equipment and premises would be known as its...
Current Assets
Non-current Assets
Non-current liabilities
Current Liabilities

Finance Terms AS/A2 Business Flashcards | StudBud