What is the main purpose of a balance sheet?

Provides information on solvency

Financial plans need to:

Be changed during different stages in life

what is the definition of the profit and loss account?

show the net profit or loss given to a period

A loan to finance the purchase of your home

Cash Flow Forecast should contain

Opening balance, Total outflow, Net cash flow, Closing balance

What are trade payables?

Good that are bought but not paid for straight away

The Financial Ombudsman resolves disputes between ......

customers and financial service providers

Which are the different methods of payments?

Cash, credit cards and electronic payment

Features of the bank of England are:

Maintaining financial stability for the UK, Issuing legal tender, setting interest rates

What is a credit score?

The score or likelihood that a person will repay debts, Harry Potter

A Fall in the Value of Equipment due to Wear and Tear

What is the formulae for closing balance?

Closing balance= Opening balance+Net cash flow

allows you to overcome debt that you are unable to pay

What is a shareholder?

someone who owns part of a business

Internal sources of finance

sale of assets, retained profit, net current assets

What is an external source of finance?

Finance that is provided by someone outside the business

Something that helps pay for some or all of your debt.

The amount of money you owe to a person or business

What is the current ratio?

Ratio of current assets to current liabilities

Money paid to Insurer for a policy

advantage of breakeven :

helps to persuade investor or lender

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Burrow's Business BTEC Brainbuster

49 termsStudBud Administration77 plays

BTEC LEVEL 3 BUSINESS FINANCE

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Questions 49

Answers

1
Which of these are sources of external finance?
bank loan
share issue
cash in bank
owners investment
2
What is the main purpose of a balance sheet?
Provides information on managers
Provides information on solvency
Provides information on liquidity
Provides information on profitability
3
What are total costs?
Fixed Costs x Variable Costs
Fixed Costs - Variable Costs
Fixed Costs + Variable Costs
Fixed Costs / Variable Costs
4
Financial plans need to:
Include income and eliminate risks
Be approved by an accountant
Be changed during different stages in life
Include income but not expenses
5
what is the definition of the profit and loss account?
to show where your loss is
to show the profit and loss accounts is even
to show where your profit is
show the net profit or loss given to a period
6
Net profit = ......
.. gross profit - expenses
....total revenue - cost of sales
...net profit - expenses
...total costs - total revenue
7
What is a mortgage?
Bubbles
What your house is worth
A loan to finance the purchase of your home
The sale of your house
8
Cash Flow Forecast should contain
Opening balance
Total outflow
Net cash flow
Closing balance
9
What are trade payables?
Goods that have been sold
Good that are bought but not paid for straight away
A loan
Borrowing money from a bank
10
What are the functions of money?
Means of exchange
Unit of account & legal tender
All of these options
Store of value
11
Sales Revenue =
Price - Quantity Sold
Quantity Sold / Price
Price x Quantity Sold
Price / Quantity Sold
12
depreciation affects
current liabilities
non-current liabilities
non-current assets
current assets
13
Gross profit margin =
gross profit / cost of sales X 100
gross profit / revenue
gross profit / revenue X 100
gross profit / cost of sales
14
Opening balance is £10, net cash flow is £40, what is closing balance?
£10
£30
£50
£40
15
What is the closing balance for August?
11,950
12,300
11,900
20,200
16
What account would insurance, depreciation and sales salaries be closed to?
Statement of Profit or Loss
Accum Depreciation
Profit or Loss Summary
Statement of Financial Position
17
The Financial Ombudsman resolves disputes between ......
banks
customers and financial service providers
18
Which are the different methods of payments?
Barter and money
Cash, credit cards and electronic payment
Euros, pounds and dollars
19
Features of the bank of England are:
Maintaining financial stability for the UK
Issuing legal tender, setting interest rates
Handles financial transactions
Making payments when asked / supplying credit
20
What is a credit score?
The score or likelihood that a person will repay debts
The lenders money amount
Harry Potter
How loaded you are
21
overdraft, trade payables, accruals are all....
current liabilities
current assets
22
Define Depreciation
Decrease in the Value of a Service
Increase in the Price of Capital Equipment
A Fall in the Value of Equipment due to Wear and Tear
An increase in the Value of a Good
23
What is the formulae for closing balance?
Closing balance= Opening balance-Net cash flow
Closing balance= Opening balance+Net cash flow
24
What is bankruptcy?
allows you to overcome debt that you are unable to pay
gives the borrowing party permission to borrow money under conditions
agreement between you and your creditors to pay back debt
25
What is a shareholder?
All of the organisations providing goods and services
The money you gain from your share in a country
someone who owns part of a business
26
Cash inflows is £35, Cash outflows is £30, what is net cash flow?
25
15
£65
£5
27
What affects the role of money?
Life stages & Life events
All of these options
External influences (Interest rates)
Personal attitudes & Culture
28
Which ratio uses the calculation current assets/current liabilities?
Acid Test Ratio
Current Ratio
Inventory Turnover
Payable Days
29
Internal sources of finance
grant, donation, crowd-funding
leasing, hire purchase, debt factoring
mortgage, loan, venture capital
sale of assets, retained profit, net current assets
30
What is an external source of finance?
Finance within the business
Finance that is provided by someone outside the business
Finance given by customers
Finance given by the employees from the business
31
What's the role of the Financial Conduct Authority
setting out targets for banks
A collection agency
To work alongside the FOS
keeping the industry stable
32
Which of these types of borrowing would have the lowest APR?
Store card
Credit card
Mortgage
Overdraft
33
Who are 'trade receiveables'?
the bank
shareholders
debtors
customers
34
Depreciation on delivery vehicle would be
a general & admin expense
a selling expense
a finance expense
35
What kind of Depreciation is this?
Straight Line
Reducing Balance
36
In the cash flow A is....
100
-4
-30
56
37
What is Bankrupcy
Something that stops the ducks from invading.
When the bank/creditors take your money away.
Something that helps pay for some or all of your debt.
When you don't have any money left.
38
What is debt?
The ability to borrow money
The amount of money you owe to a person or business
The amount of money you have in your checking account.
The amount of money you have in investments
39
What is the current ratio?
Ratio of current assets to current liabilities
Ratio of current assets to non-current liabilities
Ratio of non-current assets to non-current liabilities
Ratio of non-current assets to current liabilities
40
A Profit and Loss Account is also known as . . .
A Cash Flow Forecast
An Income Statement
A Balance Sheet
A Tax Return
41
What are examples of indirect costs?
Salary of factory Manager
All answers above
Factory Rent
Heat and light
42
What are interest rates?
The cost of lending money
The cost of borrowing money
The cost of burrowing money
The cost of spending money
43
These are examples of which type of borrowing?
Credit cards
Mortgages
Personal loans
Overdrafts
44
What is a premium?
Money paid to Insurer for a policy
Percentage of medical costs
Copayment
HBO, Showtime, Cinemax
45
Formula for net cash flow
outflows - inflows
inflows + outflows
Inflows - outflows
inflows x outflows
46
Which one of the following is an example of personal attitudes to money?
family attitude and upbringing
all of the above
risk averse/taker
rewards/borrowing
47
How do you calculate gross profit?
Revenue x Cost of sales
Revenue + Cost of sales
Revenue / Cost of sales
Revenue - Cost of sales
48
What does the net profit margin show us?
The gross profit is positive
the net profit is eaqual to the gross profit#
Every £1 earns ?pence
every £1 earns ?%
49
advantage of breakeven :
helps to persuade investor or lender
it has to be on a spreadsheet

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