Lesson 6.2.1

6.2.1 Financial Terms and Calculations Quiz: NCFE Business & Enterprise, Unit 6

20 questions · by Revision Ninja

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This free Financial Terms and Calculations quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 6: Finance. It covers lesson 6.2.1, Financial Terms and Calculations, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. A firm sells 1,000 units at £50 each. Variable costs are £20 per unit and fixed costs are £10,000. What is its gross profit?

    • £50,000
    • £20,000
    • £30,000
    • £40,000

  2. A firm has fixed costs of £25,000. Each unit sells for £80 and costs £30 in variable costs. What is its break-even point in units?

    • 500 units
    • 313 units
    • 227 units
    • 833 units

  3. A firm's quarterly sales revenue was £200,000. Cost of sales was £120,000 and operating expenses were £50,000. What was its net profit?

    • £150,000
    • £80,000
    • £30,000
    • £130,000

  4. A firm has sales revenue of £80,000 and a gross profit margin of 60%. What is its cost of sales?

    • £32,000
    • £50,000
    • £48,000
    • £128,000

  5. A firm's break-even output is 1,500 units and it currently produces 2,000 units. What is its margin of safety in units?

    • 500 units
    • 1,500 units
    • 3,500 units
    • 2,000 units

  6. Which of these changes would lower a firm's break-even output, assuming nothing else alters?

    • Switching to a more expensive supplier
    • Raising the selling price per unit
    • Raising the fixed rent on its premises
    • Cutting the price to boost sales volume

  7. A firm made a net profit of £50,000 last year. That was a net profit margin of 25%. What was its sales revenue?

    • £150,000
    • £12,500
    • £200,000
    • £62,500

  8. Which financial document reports a firm's revenue, costs and profit over a trading year?

    • Cash flow forecast
    • Income statement
    • Break-even chart
    • Year-end balance sheet

  9. A firm expects to sell 5,000 units and breaks even at 3,000 units. What is its margin of safety as a percentage of expected sales?

    • 167%
    • 60%
    • 40%
    • 67%

  10. Which term is used for a product's selling price minus its variable cost?

    • Net profit per unit sold
    • Net profit margin
    • Contribution per unit
    • Gross profit margin

  11. Why do the two sides of a balance sheet always come to the same total?

    • Cash paid in must equal cash paid out
    • Assets are valued at their resale price
    • Every asset is funded by capital or debt
    • Profit is added equally to both sides

  12. Ravi's bakery is selling fewer units than its break-even output. What does that tell us?

    • It has a wide margin of safety
    • It is trading at a loss
    • It has run out of cash
    • It is making a profit

  13. Which section of a Statement of Financial Position lists items the firm expects to turn into cash within twelve months?

    • Current assets
    • Non-current assets
    • Current liabilities
    • Owners' capital

  14. A firm wants a wider margin of safety at its current level of sales. Which action would do that?

    • Cut the variable cost per unit
    • Raise output to build up stock
    • Take on more salaried managers
    • Cut the selling price per unit

  15. A business starts March with £2,000 in the bank, receives £9,000 and pays out £7,500. What is its closing balance?

    • £3,500
    • £11,000
    • £18,500
    • £1,500

  16. An income statement shows how a business performed over which of these time frames?

    • Every year since it opened, added together
    • A single date, showing what the firm owns
    • The twelve months ahead, as a profit forecast
    • A set trading period, usually one year

  17. In a set of business accounts, which of these best describes a liability?

    • Profit left after costs
    • Items the business owns
    • Cash taken in from sales
    • Money the business owes

  18. A business makes a loss in a trading year. Which statement explains why?

    • Its variable costs rose faster than its selling price
    • It sold fewer units than the year before
    • Its total costs are greater than its revenue
    • Its revenue is greater than its total costs

  19. A firm sells 300 hoodies at £20 each. Its total costs for the period are £4,800. What profit does it make?

    • £4,800
    • £1,200
    • £6,000
    • £10,800

  20. A business reports a net loss for the financial year. What does this tell you?

    • Its expenses were greater than its revenue
    • Its revenue was greater than its expenses
    • It ran out of cash before the year ended
    • Its revenue and expenses were exactly equal