Lesson 6.2.2

6.2.2 Costs, Liabilities and Assets Quiz: NCFE Business & Enterprise, Unit 6

20 questions · by Revision Ninja

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This free Costs, Liabilities and Assets 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 6.2.2, Costs, Liabilities and Assets, 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 new café is opening. Which of these is a start-up cost rather than a running cost?

    • Fitting out the kitchen
    • Monthly staff wages
    • Weekly coffee bean orders
    • Monthly rent on the café premises

  2. A company pays a monthly rent for its office space. How is this cost best classified?

    • Variable cost
    • Start-up cost
    • Current liability
    • Fixed cost

  3. A bakery's spending on flour and sugar rises when it bakes more loaves. These costs are:

    • Start-up costs
    • Fixed overhead costs
    • Current assets
    • Variable costs

  4. A business must repay a bank loan in full within the next 12 months. The loan is a:

    • Current liability
    • Non-current liability
    • Non-current asset
    • Current asset

  5. A courier firm owns a delivery van that it uses on its rounds. In its accounts the van is a:

    • Current liability
    • Current asset
    • Non-current asset
    • Variable cost

  6. A company is owed money by customers who must pay their invoices within 30 days. This is a:

    • Current asset
    • Non-current liability
    • Current liability
    • Non-current asset

  7. A business borrows money on a 20-year mortgage to buy a factory. The mortgage is a:

    • Non-current liability
    • Current liability
    • Current asset
    • Non-current asset

  8. A firm has fixed costs of £2,000 a month and variable costs of £3 per unit. What are its total costs in a month when it makes 500 units?

    • £2,000
    • £1,500
    • £3,500
    • £2,003

  9. 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

  10. Which item in a furniture maker's accounts is a non-current asset?

    • The factory cutting machines
    • Sofas in stock ready to sell
    • Cash in the business bank account
    • Wages owed to staff this week

  11. A café has sales revenue of £250,000, gross profit of £100,000 and net profit of £20,000. What is its net profit margin?

    • 40.0%
    • 8.0%
    • 12.5%
    • 20.0%

  12. A cash flow forecast shows a negative closing balance for March. What does that mean?

    • The firm expects to owe money to the bank at the end of that month.
    • The firm expects its revenue to fall below the level of the year before.
    • The firm expects to hold too much unsold stock in its warehouse then.
    • The firm expects to make a loss on the goods that it sells that month.

  13. A shop has current assets of £40,000 and current liabilities of £15,000. What is its working capital?

    • £25,000
    • £55,000
    • £15,000
    • £40,000

  14. What is the main purpose of preparing a cash flow forecast?

    • To show when the bank balance will run out
    • To set the selling price of each product
    • To work out the profit made in the year
    • To value the assets the business owns

  15. A firm's forecast shows negative net cash flow for three months running. What is the main risk?

    • It must pay more tax on its profit
    • It will have to lower its selling price
    • It may not be able to pay its bills
    • It will be making a trading loss

  16. Which line on a break-even chart is drawn flat, staying level as output rises?

    • The total cost line
    • The variable cost line
    • The sales revenue line
    • The fixed cost line

  17. In May a business receives £18,000 and pays out £21,500. What is its net cash flow for May?

    • Negative £39,500
    • Negative £3,500
    • Positive £18,000
    • Positive £3,500

  18. Why would the owner of a small shop prepare a cash flow forecast?

    • To record the cash it actually received last year
    • To value the assets it owns at the year end
    • To work out the profit it made on each product
    • To spot months when it may run short of cash

  19. How is the acid-test (quick) ratio calculated?

    • Current assets / Current liabilities
    • Current assets / (Current liabilities - inventory)
    • Current liabilities / (Current assets - inventory)
    • (Current assets - inventory) / Current liabilities

  20. What is the formula for calculating ROCE?

    • (Operating profit / Total sales) * 100
    • (Capital employed / Operating profit) * 100
    • (Net profit / Capital employed) * 100
    • (Operating profit / Capital employed) * 100