Business

Question 1

Formula for working out profit and loss is

Answer 1

Gross profit - indirect costs =net profit

Question 2

Formula for calculating the trading account is

Answer 2

Total sales - direct costs = gross profit

Question 3

Direct costs are

Answer 3

Anything used to run the business that day-
Eg fuel, drivers wage, tyres, oil, vehicle insurance, depreciation of vehicle

Question 4

Indirect costs are

Answer 4

Anything I’ll be paying regardless of whether the bus goes out -
Eg bus repayment
Receptionist wage
Office rent
Admin

Question 5

Redundancy pay thresholds are

Answer 5

Under 22 - 0.5 weeks pay
22 to 40 - 1 weeks pay
41 and over - 1.5 weeks pay

Question 6

Voluntary liquidation takes place when

Answer 6

75%of the shareholders agree

Question 7

Liquidator acts in best interest of

Answer 7

Creditors (NOT HMRC OR SHAREHOLDERS)

Question 8

In contract law, what is a consideration?

Answer 8

The benefit each party will receive from the contract

Question 9

Notification on contravention is issued by

Answer 9

HSE

Question 10

Partnership is formally brought into existence by means of a

Answer 10

Deed of partnership

Question 11

Capital employed formula

Answer 11

Fixed and current assets - current liabilities

Question 12

Return on capital employed (ROCE) formula

Answer 12

(Net profit ÷ capital employed) × 100

Question 13

SMART

Answer 13

Specific
Measurable
Attainable
Realistic
Time based

Question 14

A debtor is

Answer 14

Someone who owes me money

Question 15

A creditor is

Answer 15

Someone I owe money to

Question 16

Long term funds eg

Answer 16

Debentures, mortgages and retained profits

Question 17

What is an acid test ratio?

Answer 17

Indicator of whether a firm has sufficient short term assets to cover its immediate liabilities

Question 18

Short-term sources of funds eg

Answer 18

Funds awaiting remittance to HMRC
Debtors

Question 19

What are the 4 P’s?

Answer 19

Product
Price
Place
Promotion

Question 20

Eg of running costs

Answer 20

Fuel
Lubricants
Tyres
Maintenance

!NOT DRIVERS WAGES!

Question 21

Reimbursement due to travel operators is calculated in the basis of

Answer 21

Revenue foregone + net additional costs

Question 22

A debit note is issued because

Answer 22

The customer has added to the original order at an extra cost

Question 23

The trading account shows details of

Answer 23

Sales and direct costs

Question 24

Working capital formula

Answer 24

Current assets - current liabilities

Question 25

Working capital ratio formula

Answer 25

Current assets ÷ current liabilities :1

Question 26

Working capital formula

Answer 26

Current assets - current liabilities

Question 27

Working capital ratio

Answer 27

Current assets ÷ current liabilities :1

Question 28

The memorandum of association....

Answer 28

List a company's shareholders and members

Question 29

Articles of association are....

Answer 29

The rules of a company

Question 30

Definition of package tour

Answer 30

Combination of 2 or more services

Question 31

Overheads are also known as

Answer 31

Indirect costs

Question 32

Overhead are also known as

Answer 32

Indirect costs

Question 33

Acid test ratio formula

Answer 33

(Current assets - value of stock) ÷ current liabilities :1

Question 34

Trading account of the company shows details of....

Answer 34

Sales and direct costs

Question 35

A worker can be legally dismissed while on strike if they

Answer 35

Join a picket line

Question 36

VAT records must be kept for

Answer 36

6 years

Question 37

What can be analysed from the balance sheet?

Answer 37

Current ratio

Question 38

Coach and bus operators will hold onto lost property for

Answer 38

28 days

Question 39

Liquid asset is

Answer 39

Something that can quickly be converted into cash eg DEBTORS AND CASH

Question 40

Net assets formula

Answer 40

Fixed and current assets - fixed and current liabilities

Question 41

Working capital is also known as

Answer 41

Net current assets

Question 42

Working capital ratio is also known as

Answer 42

Current ratio

Question 43

Current ratio/ working capital ratio

Answer 43

Current assets ÷ current liabilities :1

Question 44

Ideal working capital ratio is good if it's

Answer 44

Between 1 and 1.5 Over 2 shows that some money could be better spent elsewhere

Question 45

Acid test ratio is a good indicator of

Answer 45

The current ability of a company to pay it's current debts