Page 456 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

14 The appropriation account of an income statement:
A shows how profit is to be distributed between the business and the government

B shows how profit is to be distributed between stakeholders
C shows how profit is to be distributed between owners and the business

D shows how profit is to be distributed between shareholders and stakeholders.

15 Profit is the reward to the owners/shareholders of a business for:
A working hard

B lending money to the business

C being an entrepreneur
D risking their investment in the business.

16 An asset is something which a business:
A owes
B owns

C borrows
D lends.

17 An example of a current asset is:
A machinery

B buildings
C profit

D inventories.

18 Which of the following is not a current liability?

A Overdraft
B Bank loan

C Trade payables
D Taxation not yet paid

19 Current assets and current liabilities can be used to measure:
A profitability
B productivity

C liquidity
D business performance.

20 Shareholders’ funds include:
A share capital and taxation

B retained profit and dividend payments
C share capital and retained profits

D retained profit and taxation.

© Cambridge University Press 2014 IGCSE Business Studies Section 5 – Multiple choice 3