What is the main purpose of an income statement?
- To show the financial position of a company at a specific point in time
- To provide a summary of cash inflows and outflows
- To measure the profitability of a company over a specific period
- To detail the changes in equity during a specific period
Which of the following is true regarding government grants?
- There is nothing to repay
- They are easy to apply for
- Application procedures are simple
- Businesses can use them for any purpose
What is meant by a "liability"?
- What it owes
- What it owns
- An asset
- A depreciated item
Which of the following sources of finance is not available to a new business?
- Sale of assets
- Personal savings
- Bank loan
- Government grants
What is meant by a "dividend"?
- A portion of profits paid to shareholders
- Part-ownership of a business
- The sale of additional shares in a business
- An annual meeting of shareholders
Which of the following is a current liability?
- A mortgage
- Leasing a vehicle
- Bank loan
- Staff wages
A "statement of financial position" is also know as…
- A balance sheet
- Income statement
- Boston Matrix
- Product lifecycle
What financial document summarises a company's revenues, costs, and expenses over a specific period?
- Balance Sheet
- Income Statement
- Cash Flow Statement
- Statement of Retained Earnings
Which of the following is an advantage of an entrepreneur investing their own savings into a business?
- The business is limited liability
- If the business fails, their savings are safe
- There is no cost to the business
- The entrepreneur is guaranteed a return on their investment
Which term refers to the revenue remaining after deducting the cost of goods sold?
- Net Income
- Gross Profit
- Operating Income
- Earnings Before Interest
