Business BTEC Exam Revision With Complete Solutions 2024

Business BTEC Exam Revision With Complete Solutions 2024What is the formula for revenue? - correct answer-Price x Quantity. What is the formula for total cost? - correct answer-Fixed cost + variable cost. What is the formula for gross profit? - correct answer-Revenue - cost of sales. What is the formula for net profit? - correct answer-Gross profit - expenditure. What is the formula for break even? - correct answer-Fixed divided by selling price - variable cost. What is the formula for margin of safety? - correct answer-Actual sales - break even sales. What are debtors? - correct answer-People who owe money. What are creditors? - correct answer-People who loan money. What is the statement of comprehensive income? - correct answer-It shows the profit or loss of an enterprise over time. What is the statement of financial position? - correct answer-It shows the financial performance of an enterprise at a point in time. What's the difference between cash and profit? - correct answer-Profit is money earned by the business and what enters the business, cash is how much you have in the business. What's the difference between liquidity and profitability? - correct answer-Liquidity is how fast a asset or security can be sold, profitability is the ability a business can earn a profit. What's the formula for gross profit margin? - correct answer-Gross profit divided by revenue x 100. What's the formula for net profit margin? - correct answer-Net profit divided by revenue x 100. What's the formula for current ratio? - correct answer-Current assets divided by current liabilities What's the formula for liquid capital ratio? (Acid test ratio) - correct answer-(Current assets - inventory) divided by current liabilities. What is a cash flow statement? - correct answer-Information about cash coming in and going out. What is a cash flow forecast? - correct answer-A prediction of what cash is coming and going out. What is breakeven? - correct answer-When revenue is equal to total costs. Taking a loan is a type of what? / Money coming into a business is a what? - correct answer-Inflow. Money going out a business is what? / Purchasing or paying rent is a type of what? - correct answer-Outflow. What could be some problems of cash flow? - correct answer-Not having enough money to pay employees or suppliers. How can revenue be increased? - correct answer-Selling off unused assets, selling off inventory, chasing debtors for money owed, cutting costs, delaying payment to suppliers, reducing credit period offered to customers, cutting back or delaying expansion plans and increasing price of product being sold. What are the two types of costs? - correct answer-Fixed and variable costs. What is sales? - correct answer-The total revenue. What is the margin of safety? - correct answer-This is when revenue is higher than total costs and the business is able to earn money at that point. What is the break-even point? - correct answer-The quantity at which total revenue and total cost are equal. What are the limits of break-even analysis? - correct answer-Variable costs do not always stay the same, sales are unlikely to be the same as output, most businesses sell more than one product and break even should be for planning and not deciding. What is peer to peer lending? - correct answer-When you lend money or money is lent to you by someone else or another business. What is venture capital? - correct answer-It is money invested by outsiders, which helps businesses get started and develop new products. It helps entrepreneurs develop an idea in to a new product. It might be used to finish developing a marketable product, build or improve production facilities or to pay for product distribution.