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TM CPC PSV > Business > Flashcards

Business Flashcards

1
Q

Formula for working out profit and loss is

A

Gross profit - indirect costs =net profit

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2
Q

Formula for calculating the trading account is

A

Total sales - direct costs = gross profit

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3
Q

Direct costs are

A

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

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4
Q

Indirect costs are

A

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

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5
Q

Redundancy pay thresholds are

A

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

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6
Q

Voluntary liquidation takes place when

A

75%of the shareholders agree

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7
Q

Liquidator acts in best interest of

A

Creditors (NOT HMRC OR SHAREHOLDERS)

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8
Q

In contract law, what is a consideration?

A

The benefit each party will receive from the contract

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9
Q

Notification on contravention is issued by

A

HSE

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10
Q

Partnership is formally brought into existence by means of a

A

Deed of partnership

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11
Q

Capital employed formula

A

Fixed and current assets - current liabilities

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12
Q

Return on capital employed (ROCE) formula

A

(Net profit ÷ capital employed) × 100

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13
Q

SMART

A

Specific
Measurable
Attainable
Realistic
Time based

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14
Q

A debtor is

A

Someone who owes me money

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15
Q

A creditor is

A

Someone I owe money to

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16
Q

Long term funds eg

A

Debentures, mortgages and retained profits

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17
Q

What is an acid test ratio?

A

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

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18
Q

Short-term sources of funds eg

A

Funds awaiting remittance to HMRC
Debtors

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19
Q

What are the 4 P’s?

A

Product
Price
Place
Promotion

20
Q

Eg of running costs

A

Fuel
Lubricants
Tyres
Maintenance

!NOT DRIVERS WAGES!

21
Q

Reimbursement due to travel operators is calculated in the basis of

A

Revenue foregone + net additional costs

22
Q

A debit note is issued because

A

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

23
Q

The trading account shows details of

A

Sales and direct costs

24
Q

Working capital formula

A

Current assets - current liabilities

25
Q

Working capital ratio formula

A

Current assets ÷ current liabilities :1

26
Q

Working capital formula

A

Current assets - current liabilities

27
Q

Working capital ratio

A

Current assets ÷ current liabilities
:1

28
Q

The memorandum of association….

A

List a company’s shareholders and members

29
Q

Articles of association are….

A

The rules of a company

30
Q

Definition of package tour

A

Combination of 2 or more services

31
Q

Overheads are also known as

A

Indirect costs

32
Q

Overhead are also known as

A

Indirect costs

33
Q

Acid test ratio formula

A

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

34
Q

Trading account of the company shows details of….

A

Sales and direct costs

35
Q

A worker can be legally dismissed while on strike if they

A

Join a picket line

36
Q

VAT records must be kept for

A

6 years

37
Q

What can be analysed from the balance sheet?

A

Current ratio

38
Q

Coach and bus operators will hold onto lost property for

A

28 days

39
Q

Liquid asset is

A

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

40
Q

Net assets formula

A

Fixed and current assets - fixed and current liabilities

41
Q

Working capital is also known as

A

Net current assets

42
Q

Working capital ratio is also known as

A

Current ratio

43
Q

Current ratio/ working capital ratio

A

Current assets ÷ current liabilities :1

44
Q

Ideal working capital ratio is good if it’s

A

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

45
Q

Acid test ratio is a good indicator of

A

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

TM CPC PSV (9 decks)

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