Month: February 2022

Which of the following is an internal source of business finance?

Select ONE answer:

1. Trade credit
2. Bank overdraft
3. Retained profit
4. Leasing

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Short-term cash flow can be improved by?

Select ONE answer:

1. Increasing the value of finished goods inventories
2. Extending the period of credit taken from suppliers
3. Cutting the gross profit margin
4. Repaying a long-term bank loan

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which one of these actions would be MOST likely to improve contribution per unit?

Select ONE answer:

1. Lower raw materials costs
2. Higher marketing spending
3. Higher discounts offered to customers
4. Lower rent costs

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which of the following best describes a fixed cost?

Select ONE answer:

1. A cost which has a direct relationship with output
2. A fixed proportion of total costs
3. A cost which remains constant irrespective of output
4. A cost which decreases proportionately with output

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which of these formulae defines the point at which breakeven output is achieved?

Select ONE answer:

1. Total Costs = Total Contribution
2. Total Revenue = Total Price
3. Total Profit = Total Costs
4. Total Revenue = Total Costs

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.