Financial Objectives, Cash-Flow and Profit (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What are financial objectives?
What are financial objectives?
Specific, measurable monetary targets
Which area is NOT typically covered by financial objectives?
Which area is NOT typically covered by financial objectives?
Employee satisfaction levels
How do financial objectives build stakeholder confidence?
How do financial objectives build stakeholder confidence?
Show clear financial planning to lenders
What is the key difference between cash flow and profit?
What is the key difference between cash flow and profit?
Cash flow measures actual money movements
When does a sale affect cash flow?
When does a sale affect cash flow?
When payment is actually received
Why do many small businesses fail despite being profitable?
Why do many small businesses fail despite being profitable?
They experience cash-flow problems
How does holding large amounts of inventory affect a business?
How does holding large amounts of inventory affect a business?
Cash is tied up in unsold stock
A business makes £100k sales on 60-day credit. What is the immediate cash impact?
A business makes £100k sales on 60-day credit. What is the immediate cash impact?
£0 - no cash received yet
How is gross profit calculated?
How is gross profit calculated?
Sales revenue - Direct production costs
Which cost is included in direct costs of production?
Which cost is included in direct costs of production?
Production workers' wages