Which of the following is not shown on an income statement?
- Revenue
- Costs
- Share value
- Profit
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
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
A ______ is when all expenses have been paid.
- Dividend
- Profit
- Share
- Segment
On a cashflow forecast, an "opening balance" is…
- …cash remaining at the end of the current month
- …inflow minus outflow
- …the closing balance plus the cash inflow
- …cash remaining from the previous month
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 disadvantage of calculating the annual rate of return?
- The entire investment period is used
- It does not consider inflation
- It provides an easy-to-compare percentage value
- A simple comparison of investments can be made
What is the formula for gross profit?
- Gross profit = cost of sales - revenue
- Gross profit = revenue - cost of sales
- Gross profit = profit - variable costs
- Gros profit = profit - fixed costs
Which of the following is a liability?
- Fixed assets
- Current assets
- Short-term debts
- Share value
Which of the following is an advantage of calculating the annual rate of return?
- Provides a clear and easy to understand percentage value
- Easy to compare the potential returns of different investments
- It considers the entire investment period
- The estimated annual profits from the investment are used
