Cashflow, Pricing, Accounts, and Finance Quiz

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* 1. What is the MOST important reason to keep accounts?

to calculate your assets (or liabilities)

to record your shareholders

to record your transactions

to find out your profit (or loss)

to summarise your transactions

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* 2. Which of the following is a business asset?

a PAYE bill

an overdraft

stock in the warehouse

a trade creditor

a VAT bill

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* 3. Which of the following is a business liability?

corporation tax

a trademark

cash in the bank

a piece of machinery

a trade debtor

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* 4. Which of the following is true of debt finance?

you have to repay the money

you can predict your costs

you keep control of your business

you might arrange it quickly

all of the above

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* 5. Which of the following is true of equity finance?

you pay less to get this sort of finance

you might disagree with your investors

you keep control of your own business

your cashflow is negatively affected

all of the above

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* 6. Which of the following is a true statement about your profit and loss account?

it reports your financial position at a point in time

it reports sources and changes of equity

it reports your financial performance for a period of time

it reports changes in your cash between accounting periods

none of the above

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* 7. Which of the following is a true statement about your balance sheet?

it reports sources and changes of equity

it reports your financial position at a point in time

it reports your financial performance for a period of time

it reports changes in your cash between accounting periods

none of the above

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* 8. Which of the following is a true statement about your cash flow statement?

it reports your financial performance for a period of time

it reports your financial position at a point in time

it reports sources and changes of equity

it reports changes in your cash between accounting periods

none of the above

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* 9. Which of the following is NOT true?

cost-plus pricing requires a thorough understanding of your costs

cost-plus pricing is recommended by HMRC

cost-plus pricing is easy to understand

cost-plus pricing is one way to set your prices, but there are others

cost-plus pricing determines the price by adding a markup

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* 10. Which of the following is true?

value-based pricing offers discounts for bulk buys

value-based pricing complicates your VAT returns

value-based pricing determines the price by adding a markup

value-based pricing considers how much customers think your product is worth

value-based pricing is recommended by HMRC