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6. Which of the following are an internal source of funds for a business?

  • Retained profit
  • Mortgage
  • Bank overdraft

7. Which of the following best describes the margin of safety?

  • Revenue equals expenditure
  • Actual sales plus break even units
  • Revenue plus expenditure
  • Actual sales minus break even units

8. Describe the purpose of a statement of financial position (balance sheet)

  • To show the financial position of a business at a point in time
  • To show what a business owns
  • To predict the financial position of the business

9. What is the formula for working capital?

  • Current assets/ current liabilites
  • Current liabilites/Current assets
  • Current assets – current liabilites
  • Current assets + current liabilites

10. Which of these are types of assets which would appear on the balance sheet?

  • Machine
  • Sales
  • Advertising