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

Question 1 of 10

1

Select from the dropdown lists to complete the text.

Cash is the most ( liquid, runny ) (asset that is easily changed into cash) of all business assets. Cash is the ( notes & coins, credit & debit cards ) 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 ( overheads, big things ). 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 ( walk out., loan the business money )

Explanation

Question 2 of 10

1

Cashflow 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.

Select one of the following:

True
False

Explanation

Question 3 of 10

1

Why are Cash Flow Forecasts Important?

Select one of the following:

Cash flow forecasts are useful for : identifying cash shortages, supporting applications for funding, help planning the business and monitoring cash flow
A cash flow forecast provides the business with a 100% accurate picture of business spend and future profits

Explanation

Question 4 of 10

1

If a business is insolvent it is .....?

Select one or more of the following:

doing really well financially
unable to meet its debts
looking to branch out into a different business area

Explanation

Question 5 of 10

1

Businesses 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)

Select one or more of the following:

rent
packaging
advertising
raw materials
research and development costs
fuel
insurance payments
labour (staff)

Explanation

Question 6 of 10

1

Select from the dropdown lists to complete the text.

In business, it is crucial to know how much ( output, input ) needs to be sold to cover costs. If costs are not covered by ( revenue,, output ) 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 ( break even., close )

Explanation

Question 7 of 10

1

Break-even point is where total cost and total revenue meet

Select one of the following:

True
False

Explanation

Question 8 of 10

1

Select from the dropdown lists to complete the text.

Break-even charts are ( graphs, drawings ) 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 ( break-even., do well )

Explanation

Question 9 of 10

1

The 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.

Select one of the following:

True
False

Explanation

Question 10 of 10

1

If a business has a break even point of of 100 products and it sells 150 of those products then the margin of safety is ?

Select one of the following:

100 products
50 products

	Created by Michelle Parker almost 3 years ago

GCSE Business - Cash, Costs, Break Even, Statements

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

Question 1 of 10

Select from the dropdown lists to complete the text.

Explanation

Question 2 of 10

Cashflow 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.

Select one of the following:

Explanation

Question 3 of 10

Why are Cash Flow Forecasts Important?

Select one of the following:

Explanation

Question 4 of 10

If a business is insolvent it is .....?

Select one or more of the following:

Explanation

Question 5 of 10

Select one or more of the following:

Explanation

Question 6 of 10

Select from the dropdown lists to complete the text.

Explanation

Question 7 of 10

Break-even point is where total cost and total revenue meet

Select one of the following:

Explanation

Question 8 of 10

Select from the dropdown lists to complete the text.

Break-even charts are graphs drawings( graphs, drawings ) 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 break-even. do well( break-even., do well )

Explanation

Question 9 of 10

The 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.

Select one of the following:

Explanation

Question 10 of 10

If a business has a break even point of of 100 products and it sells 150 of those products then the margin of safety is ?

Select one of the following:

Explanation

Break-even charts are ( graphs, drawings ) 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 ( break-even., do well )