Finance
GCSE Business Studies
Finance
(‘True’ or ‘False’ exercise)
GCSE Business Studies
Finance
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Answer
A fixed cost is one which never changes
False
True
False
Sales Revenue - Cost of sales = Gross Profit
False
True
True
“Overheads” is a term used to mean fixed
costs
False
True
True
A debtor is someone who is owed money by a
firm
False
True
False
Net Profit = Gross Profit - Expenses
False
True
True
Turnover is another name for Sales Revenue
False
True
True
GCSE Business Studies
Finance
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Answer
A fixed asset is something which a firm will use
over and over again as it carries out its business
False
True
True
Profit which is not distributed to shareholders is
called “retained profit”
False
True
True
Current Assets can more easily be turned into
cash
False
True
True
Shareholders get paid interest by the company
False
True
False
Suppliers giving trade credit normally allow one
month to pay
False
True
True
Stock, Debtors and Cash are all examples of
Current Assets
False
True
True
GCSE Business Studies
Finance
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Answer
The Profit percentage is
Profit/Turnover * 100
False
True
True
The profit percentage is also known as the profit
margin
False
True
True
A current liability is a debt which will have to be
paid in the next three months
False
True
False
Current Assets - Current Liabilities
= Working Capital
False
True
True
A bank has the right to call for an overdraft to be
paid on demand (it doesn’t have to give notice)
False
True
True
The profit paid to shareholders in a business is
called a dividend
False
True
True
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Answer
A liability i something which business owes
An asset is something which a business owes
GCSE Business Studies
Finance
Mortgages and Debentures are examples of
Long Term Borrowing
False
True
True
False
True
False
False
True
True