Day: February 24, 2018

Business Studies Multiple Choice Question – 24 February 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The table below shows the cash-flow forecast for a small business for one month:

Total Receipts £15,760
Raw Materials £6,030
Rent £1,200
Total Payments £7,230
Net Cash Flow £8,530
Opening Balance £4,070
Closing Balance ???

Which ONE of the following is the correct figure for the closing balance?

Select ONE answer only:

  1. (390)
  2. 5,370
  3. 7,230
  4. 8,310
  5. 12,600

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 2 – The closing balance is the amount of money remaining at the end of the month, and is calculated by subtracting the net cash flow (which is the difference between total receipts and total payments for the month) from the opening balance at the start of the month. (Remember, figures in brackets are minus figures). Therefore: £4,070 + £8,530 = £12,600

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