Inventory

Question 1

What are the 13 types of inventory?
1. Rent.
2. Rates.
3. Heating & lighting.
4. Water.
5. Insurance.
6. Administration.
7. Salaries.
8. Wages.
9. Marketing.
10. Bank charges.
11. Interest paid.
12. Depreciation.
13. Discount allowed.

Question 2

Rates are the sums of money paid to the _______________ to go towards services such as street lights and refuse collection.

It is calculated based on:
1. Size/ location.
2. Nature of the business.

Answer 2

local council

Question 3

What are the 4 types of business insurance:
1.
2.
3.
4.

Answer 3

1. Buildings insurance
2. Contents insurance
3. Public liability insurance.
4. Employer’s liability insurance.

Question 4

Buildings insurance is used to protect the ___________________ from damage by fire or floods.

Contents insurance is used to protect _____________________________ (such as stock) from damage by fire or floods.

Answer 4

physical building
what is inside the building

Question 4

_________________________ is used to protect people within the company building who may be injured from an event.

Answer 4

Public liability insurance

Question 5

Employers’ liability insurance is used to protect a business from ______________________ if an _____________________.

Answer 5

compensation claims
employee is injured

Question 6

Administrative costs include:
1. Postage.
2. Stationery.
3. ______________________.

Answer 6

Telephone charges.

Question 7

A salary is an annual figure paid to an employee divided into equal monthly payments.

A wage is an hourly rate paid to an employee.

Paying a wage rather than a salary allows greater ______________, but also creates greater _____________.

Answer 7

flexibility
uncertainty

Question 8

Banks charge a business for every transaction they make.

Banks might offer ________________ to businesses for the first year as a ______________________.

But afterwards, bank charges can soon start to add up to a large amount of money.

Answer 8

free banking
marketing technique

Question 9

True or false: There is no interest whenever a business has a bank loan or mortgage.

Answer 9

False. There is interest.

Question 10

Depreciation is a decrease in the value of a fixed asset.

What are the two types of depreciation:
1.
2.

Answer 10

1. Straight-line depreciation.
2. Reducing balance depreciation.

Question 11

Discounts are an expense to a business, why?

Answer 11

Because they reduce the amount of cash flowing into the business.