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- 1. Multiple Choice
_____ is the money put into the business by the owners.
Contribution
Overdraft
Capital
Elasticity
- 2. Multiple Choice
______ is the profit after tax that is put back into the business and not taken out by the owners.
Net profit
Gross profit
Operating profit
Retained profit
- 3. Multiple Choice
A _____ allows a business to spend more money than it has is their bank account.
mortgage
bank overdraft
grant
lease
- 4. Multiple Choice
No legal difference between the owners and the business =
Unlimited liability
Partial liability
Limited liability
Share capital
- 5. Multiple Choice
_____ refers to an asset that may be sold to pay a lender if a loan cannot be repaid.
Debenture
Collateral
Grant
Patent
- 6. Multiple Choice
Which if the following is an example of a cash inflow?
VAT payable
Raw materials
Cash sales
Loan repayments
- 7. Multiple Choice
_____ refers to the ability to which a business can pay their debts on time.
Solvency
Liability
Inflation
Extrapolation
- 8. Multiple Choice
_____ are costs that remain the same at all levels of output.
Variable costs
Running costs
Fixed costs
Direct costs
- 9. Multiple Choice
What is the formula for Total Sales Revenue?
Price per unit + Quantity sold
Price per unit / Quantity sold x 100
Price per unit - Quantity sold x Cost of Sales
Price per unit x Quantity sold
- 10. Multiple Choice
_____ refers to the quantity of output sold in a specific period of time.
Raw materials
Sales volume
Variable costs
Gross profit
- 11. Multiple Choice
What is the formula for Total costs?
Fixed costs + Variable costs
Fixed costs + Variable costs - Semi Variable costs
Fixed costs x Variable costs
Fixed costs + Variable costs / 100
- 12. Multiple Choice
_____ is a cost that fluctuates to reflect output.
Net cash flow
Fixed costs
Operating profit
Variable costs
- 13. Multiple Choice
What is the formula to calculate the 'Contribution' of a unit?
Selling price / variable costs per unit x 100
Selling price - variable costs per unit
Selling price x fixed costs per unit
Selling price - fixed costs per unit
- 14. Multiple Choice
What is the formula to calculate the break even output?
Fixed costs x Contribution - Fixed costs
Contribution / Variable costs
Fixed costs / Contribution
Fixed costs - Contribution + Variable costs
- 15. Multiple Choice
What is the term used to describe the units sold that are above the break even point?
Closing balance
Extrapolation
Contribution
Margin of safety
- 16. Multiple Choice
_____ is the point where total revenues are equal to total costs.
Contribution
Net profit
Break even point
Margin of safety
- 17. Multiple Choice
_____ is the cost of the next best alternative.
Sales forecast
Potential variance
Opportunity cost
Share capital
- 18. Multiple Choice
What is the formula to calculate gross profit?
Revenue - Cost of Sales - Interest costs
Revenue - Exceptional costs
Revenue - Cost of sales - Other expenses
Revenue - Cost of sales
- 19. Multiple Choice
What financial document could a business use to see their gross profit?
Statement of Comprehensive Income
Break Even Analysis
Cash Flow Forecast
Statement of Financial Position
- 20. Multiple Choice
What financial document could a business use to check what assets and liabilities they have?
Profit and Loss account
Statement of Financial Position
Statement of Comprehensive Income
Cash Flow Forecast
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