Tag: A-Level

If cash outflows are £5,000 and net cash flow is £2,000, calculate the value of cash inflows?

Select ONE answer:

1. £7,000
2. £3,000
3. (£3,000)
4. (£7,000)

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 ==> £Xk – £5k = +£2k thus £Xk is £7k
2. Not correct
3. Not correct
4. Not correct

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A specialist wedding cake baker’s fixed costs are £7,000 per month.

It sells cakes at a priceof £57 per cake & the variable cost per cake is £22.

What is the break-even level of output and sales each month?

Select ONE answer:

1. 150 cakes
2. 200 cakes
3. 250 cakes
4. 500 cakes

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 ==> £7,000 / (£57 – £22)
3. Not correct
4. Not correct

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What does a statement of financial position show?

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.

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.