Finance GCSE Business Studies Finance True or False

Finance GCSE Business Studies Finance (‘True’ or ‘False’ exercise)

GCSE Business Studies Finance Click the boxes to register your answers Answer A fixed cost is one which never changes False True False Sales Revenue - Cost of sales = Gross Profit False True “Overheads” is a term used to mean fixed costs False True A debtor is someone who is owed money by a firm False True False Net Profit = Gross Profit - Expenses False True Turnover is another name for Sales Revenue False True

GCSE Business Studies Finance Click the boxes to register your answers Answer A fixed asset is something which a firm will use over and over again as it carries out its business False True Profit which is not distributed to shareholders is called “retained profit” False True Current Assets can more easily be turned into cash False True Shareholders get paid interest by the company False True False Suppliers giving trade credit normally allow one month to pay False True Stock, Debtors and Cash are all examples of Current Assets False True

GCSE Business Studies Finance Click the boxes to register your answers Answer The Profit percentage is Profit/Turnover * 100 False True The profit percentage is also known as the profit margin False True A current liability is a debt which will have to be paid in the next three months False True False Current Assets - Current Liabilities = Working Capital False True A bank has the right to call for an overdraft to be paid on demand (it doesn’t have to give notice) False True The profit paid to shareholders in a business is called a dividend False True

Click the boxes to register your answers A liability i something which business owes An asset is something which a business owes GCSE Business Studies Finance Mortgages and Debentures are examples of Long Term Borrowing Answer False True False True