Which of these statements is true?

• A positive cashflow means more money is flowing out of the business than in to it
• Businesses can improve cashflow by offering longer trade credit times to customers
• Poor cashflow can cause a profitable business to fail
• A positive net cash flow is the same as profit

The gap between the break-even point and the businesses current output is called…

• …the margin of safety
• …a balance sheet
• …liquidity
• …the break-even point

A "statement of financial position" is also know as…

• A balance sheet
• Income statement
• Boston Matrix
• Product lifecycle

Which of the following is an example of cash outflow?

• Purchasing stock
• Sale of goods
• Money from investors
• Loans from banks

A business aims to increase its profitability by investing £15,000 over three years. During this time, it expects its profits to increase by a total of £24,000. What is the average rate of return?

• 16%
• 50%
• 100%
• 250%

On a financial statement, what does it mean if a number has brackets around it

• The value is in pounds
• The value is an estimate
• The value is negative
• The value is a borrowed amount

The Acme Spring and Dynamite Company buys 400 pogo sticks for £4000 and sells each one for £35. How much is the total profit?

• £35
• £14,000
• £10,000
• £10

What is the purpose of the margin of safety?

• It allows business to calculate the difference between variable costs and fixed costs
• It allows a business to identify how many more sales it must make before it reaches profitability
• It allows business to identify how far sales can fall before a loss is made
• It allows a business to calculate the gap between sales output and total costs

Which type of finance allows a business to pay its suppliers a few weeks after they receive their goods?

• Hire purchase
• Trade credit
• Short-term loan
• Retained profits

Which of the following is a liability?

• Fixed assets
• Current assets
• Short-term debts
• Share value