1. Which of the following best describes capital?
- The expense over the year
- How a business is funded
- The earnings over the year
- What the business owes
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Other questions in this quiz
2. Which of the following best describes the margin of safety?
- Actual sales plus break even units
- Revenue equals expenditure
- Actual sales minus break even units
- Revenue plus expenditure
3. Describe the purpose of a statement of financial position (balance sheet)
- To predict the financial position of the business
- To show the financial position of a business at a point in time
- To show what a business owns
4. The business sell books for £12 each. They cost £5 to make. The fixed costs are £735. Calulate the break even
- 105 books
- 795 books
5. What is the formula for working capital?
- Current assets/ current liabilites
- Current liabilites/Current assets
- Current assets – current liabilites
- Current assets + current liabilites