Which of the following is not shown on an income statement?

  • Revenue
  • Costs
  • Share value
  • Profit

A business wishes to raise funds by selling assets. What does this mean?

  • The business will release and sell additional shares
  • The business will attempt to sell more goods and services
  • The business will increase its product portfolio
  • The business will sell items it no longer uses

What is the purpose of a cash flow forecast?

  • Allows a business to monitor its sales
  • Allows a business to anticipate liquidity problems
  • Allows a business to borrow money
  • Allows a business to delay payments

Which factors should a business consider when choosing finance options?

  • Cost, timescales, amount to be borrowed, and the size and type of their business
  • Specific, measureable, achievable, realisitic, time-bound
  • Personal savings, loans, government grants, credit, share issues, and crowd funding
  • Profit, revenue, fixed costs, and variable costs

When lots of individuals donate small amounts of money to a business, often for a specific project, it is known as…

  • Kickstarter
  • Goodwill
  • Micro-transactions
  • Crowdfunding

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

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

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

Which of the following is a long-term liability?

  • An overdraft
  • Trade credit payments
  • Bank loan
  • Taxes

The income a business makes from selling goods and services is known as…

  • Profit
  • Revenue
  • Dividends
  • Sales

Which of the following is an advantage of preparing a cashflow forecast?

  • It helps to predict future sales
  • It helps a business to set its future aims and objectives
  • It helps a business to predict liquidity problems
  • It helps a business to predict future break-even points