Page 455 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

7 A cash-flow forecast shows the:
A timing of cash inflows and outflows over a period of time

B amount of cash a business earns from sales
C the amount of profit a business earns over a period of time

D how much cash a business has in its bank account.

8 A short-term cash shortage might be financed by:
A not paying workers’ wages

B reducing dividend payments to shareholders

C taking out a bank loan
D offering discounts to credit sales customers.

9 A business can improve its working capital by:
A increasing sales
B reducing inventories

C increasing credit terms to customers
D paying trade payables sooner than it needs to.

10 Working capital measures:
A business profitability

B business efficiency
C business liquidity

D business productivity.

11 The difference between gross profit and profit is:

A cost of sales
B taxation

C expenses
D interest on borrowing.

12 Profit is:
A total costs less revenue
B revenue less costs of sales

C revenue less fixed costs
D revenue less total costs.

13 Profit is important to businesses because:
A it improves businesses, cash balances

B it can be used to measure business size
C it is a measure of businesses, success

D businesses need to pay taxes to the government.

© Cambridge University Press 2014 IGCSE Business Studies Section 5 – Multiple choice 2