Unit 3 LOF - Assessment

1.

Multiple Choice

30 sec

1 pt

The money a company earns from selling its goods and services to customers is known as

Sales revenue

Cost of goods sold

Inventory

Gross profit

2.

Multiple Choice

45 sec

1 pt

This includes all of the costs and expenses directly related to the production of goods. It excludes indirect costs such as overhead and sales & marketing. This is deducted from revenues (sales) in order to calculate gross profit.

Sales revenue

Cost of goods sold

Inventory

Gross profit

3.

Multiple Choice

45 sec

1 pt

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Sales revenue

Cost of goods sold

Inventory

Gross profit

4.

Multiple Choice

1 min

1 pt

Gross profit is calculated by which formula?

subtracting the revenue (sales) made from the cost of goods

subtracting the cost of goods sold from the revenue (sales)

multiplying revenue by sales price

dividing revenue by sales price

5.

Multiple Choice

45 sec

1 pt

This is the term for the goods available for sale and raw materials used to produce goods available for sale. This represents one of the most important assets of a business because the turnover of this represents one of the primary sources of revenue generation.

Sales revenue

Cost of goods sold

Inventory

Gross profit

6.

Multiple Select

45 sec

1 pt

Once a vehicle or a piece of equipment has been used it becomes second hand and loses value - this business term is called what?

Net profit

Inventory

Expenses

Depreciation

7.

Fill in the Blank

1 min

1 pt

Once Gross profit has been calculated you then deduct all the business expenses from this, you then end up with your final figure which is known as?

8.

Multiple Choice

30 sec

1 pt

Historic value - residual value / expected life

What's the name of this formula?

Straight line depreciation

Historic value formula

The cost of an asset when it was first purchased

Reducing balance

9.

Multiple Choice

30 sec

1 pt

If a business has an excellent Gross Profit figure, however when the Net profit is worked out it hardly leaves any profit, what could a business do?

Increase prices

Change utility suppliers to get a better deal

Reduce marketing and advertising expenses

Review staff requirements

All of these things

10.

Multiple Choice

30 sec

1 pt

Everything a business owns = assets

Everything that a business owes = liabilities True or false?

True

False

11.

Multiple Choice

30 sec

1 pt

Tangible assets are untouchable? Such as patents, goodwill, trademarks, logo, branding

True

False

12.

Multiple Select

45 sec

1 pt

Click all of the tangible assets

Premises

Branding

Vehicles

Fixtures and fittings (ie furniture etc)

13.

Multiple Select

45 sec

1 pt

A non-current asset is something that the business owns that is long term such as ... tick all that apply

Cash

Patents

Land

Buildings

14.

Multiple Choice

45 sec

1 pt

Current assets are known as 'liquid assets' why?

They stay with the business for more than a year

They're runny like hunny

They usually stay within the business for less than a year

They make you go to the toilet

15.

Multiple Choice

1 min

1 pt

A business has a gross profit margin of 66% what does this mean?

It is in debt and has to pay 34% of profits to the bank

The business has made £66 in profit

34% of the profits will go to shareholders

For every £1 made in sales the business makes 66p in profit

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