Unit 3 Finance Financial Documents

8 Questions | Total Attempts: 64

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Financial Management Quizzes & Trivia

Financial documents - areas that my students find difficult, mainly financial documents


Questions and Answers
  • 1. 
    Explain how profit/loss accounts would be useful to the Bank Manager in deciding whether or not to provide a loan to a company.
  • 2. 
    Why might the government be interested in the balance sheet of a company?
  • 3. 
    Why might a company choose a bank overdraft rather than a loan to deal with temporary cash flow problem?
  • 4. 
    Explain possible reasons for the difference between the forecast figures and the actual figures.
  • 5. 
    Which Stakeholder is interested in Profit/Loss accounts because : "If good net profits then loans are more likely to be repaid"?
    • A. 

      Managers

    • B. 

      Bank

    • C. 

      Employees

    • D. 

      Government

    • E. 

      Suppliers

  • 6. 
    Which financial documents will inform a stakeholder about the current health of a business?
    • A. 

      Cash Flow

    • B. 

      Balance Sheets

    • C. 

      Profit/Loss accounts

  • 7. 
    Which financial document will predict the potential inflows and outflows in a business?
    • A. 

      Balance sheets

    • B. 

      Cash Flow

    • C. 

      Profit / loss accounts

  • 8. 
    A fixed asset is:
    • A. 

      A debt that the company must pay back within a year

    • B. 

      Something that a company owns is not expected to be of value in more than one years time

    • C. 

      Something that a company owns and is likely to be of value in more than one years time

    • D. 

      A debt that the company will pay back over a number of years

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