Which of the following is not a key financial statement used by businesses?
Income statement
Business plan
Statement of financial position
What is a ‘balance sheet’ another name for?
Current assets
What is the correct formula for the gross profit margin?
(Net profit ÷ sales revenue) × 100
(Gross profit ÷ sales revenue) × 100
(Sales revenue ÷ gross profit) × 100
A business makes a gross profit of £300,000. If its sales revenue is £650,000, what is its gross profit margin?
0.5385
0.0217
0.4615
What is the correct formula for the net profit margin?
Which of the following will always improve the net profit margin of a business?
Reducing expenses
Reducing prices
Increasing interest payments
What does ‘cost of sales’ mean?
All the expenses in a business
The variable costs associated with making a product or providing a service
What the business is worth, all assets added together
What does ‘current liabilities’ mean?
Any business debts that will be paid back within a year
Any business debts that will be paid back over more than a year
Anything that a business is likely to own for less than a year
What figure is going to be the lowest on an income statement?
Gross profit
Net profit
Total assets
What is the correct calculation for net current assets?
Current assets – current liabilities
Current assets – long term liabilities
Current assets – total liabilities