Financial Information and Decisions module quiz: O-Level Business Studies (SEAB 7085) quiz

Retained profit

Bank loan

Bank overdraft

Trade credit

A 10-year bank loan

A bank overdraft

Issuing shares

Buying a new factory

Total revenue minus total costs

Fixed costs divided by output

Selling price per unit minus variable cost per unit

The number of units sold

$800$ units

$40{,}000$ units

$1{,}333$ units

$2{,}000$ units

The amount by which actual or expected sales exceed the break-even quantity

The fixed costs of a business

The total profit for the year

The cost of one unit

They are exactly the same thing

Profit is revenue minus costs over a period; cash is the actual money available at a point in time

Cash is always larger than profit

Profit is only used by charities

Customers paying immediately in cash

Selling old equipment for cash

Customers being allowed a long credit period before they pay

Receiving a cash grant

Paying suppliers earlier than necessary

Allowing all customers unlimited time to pay

Buying large amounts of stock on credit it cannot sell

Negotiating a longer credit period from suppliers

Revenue minus cost of sales

Revenue minus all expenses including overheads

Total assets minus total liabilities

Fixed costs plus variable costs

Gross profit minus all other expenses such as rent and wages

Revenue before any costs

The same as cost of sales

The total value of the firm's assets

Sales over the year only

Assets, liabilities and owner's equity at a point in time

Marketing plan

Number of employees

How profitable the firm is

The market share of the firm

Whether the firm can pay its short-term debts, by comparing current assets with current liabilities

The number of products sold

$90\%$

$60\%$

$25\%$

$40\%$

Because a single ratio on its own gives little context for judging performance

Because ratios are only valid in the first year

Because comparison removes the need to calculate anything

Because ratios cannot change over time