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IGCSE Business - Cash, Costs, Break Even, Statements etc

Michelle Parker 10 questions

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Questions in this quiz (10)

  1. 1Cash is the most [blank_start]liquid[blank_end] (asset that is easily changed into cash) of all business assets. Cash is the [blank_start]notes & coins[blank_end] a business keeps on the premises & any money it has in the bank. Without cash a business can’t trade. Businesses also need cash to pay for [blank_start]overheads[blank_end]. Businesses will often get bills for the services they have already used; if they aren’t paid the services will be cut. Finally, if a business can’t pay its employees; they will [blank_start]walk out.[blank_end]
    Image for question 1
    1. Aliquid
    2. Brunny
    3. Cnotes & coins
    4. Dcredit & debit cards
    5. Eoverheads
    6. Fbig things
    7. Gwalk out.
    8. Hloan the business money
  2. 2Cashflow is a prediction of all expected receipts & expenses of a business over a future time period, which shows the expected cash balance at the end of each month.
    Image for question 2
    1. ATrue
    2. BFalse
  3. 3Why are Cash Flow Forecasts Important?
    Image for question 3
    1. ACash flow forecasts are useful for : identifying cash shortages, supporting applications for funding, help planning the business and monitoring cash flow
    2. BA cash flow forecast provides the business with a 100% accurate picture of business spend and future profits
  4. 4If a business is insolvent it is .....?Image for question 4
    1. Adoing really well financially
    2. Bunable to meet its debts
    3. Clooking to branch out into a different business area
  5. 5Businesses have to pay for the resources they use. These expenses might include wages, raw materials, components, energy and machinery. They are called costs. However, there are different types of business costs. Some costs stay the same when a business produces more output, but others go up when more is produced.
    Select the 4 FIXED COSTS (sometimes known as OVERHEADS)    Image for question 5
    1. Arent
    2. Bpackaging
    3. Cadvertising
    4. Draw materials
    5. Eresearch and development costs
    6. Ffuel
    7. Ginsurance payments
    8. Hlabour (staff)
  6. 6In business, it is crucial to know how much [blank_start]output[blank_end] needs to be sold to cover costs. If costs are not covered by [blank_start]revenue,[blank_end] the business will make a loss. If revenue is greater than costs, the business will make a profit. If costs are exactly the same as revenue, the business will [blank_start]break even.[blank_end] Image for question 6
    1. Aoutput
    2. Binput
    3. Crevenue,
    4. Doutput
    5. Ebreak even.
    6. Fclose
  7. 7Break-even point is where total cost and total revenue meet
    1. ATrue
    2. BFalse
  8. 8Break-even charts are [blank_start]graphs[blank_end] which show how costs and revenues of a business change with sales. They show the level of sales the business must make in order to [blank_start]break-even.[blank_end]
    Image for question 8
    1. Agraphs
    2. Bdrawings
    3. Cbreak-even.
    4. Ddo well
  9. 9The margin of safety is the amount sales can fall before the break-even point is reached and the business makes no profit. This calculation also tells a business how many sales they have made over their break-even point (BEP). The larger the margin of safety, the lower the risk for a business.Image for question 9
    1. ATrue
    2. BFalse
  10. 10If a business has a break even point of of 100 products and it sells 150 of those products then the margin of safety is ?Image for question 10
    1. A100 products
    2. B50 products

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Description
GCSE Business - Cash, Costs, Break Even, Statements
Language
English
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