Lesson 5.2.1
5.2.1 Sources of finance Quiz: OCR Business, Unit 5
20 questions
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Lesson 5.2.1, Sources of finance: 20 multiple choice questions for the OCR Business (H431), Unit 5: Accounting and finance, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
Which source of finance is generated entirely from within an existing business?
- Share capital
- Bank loan
- Venture capital
- Retained profit
-
Which source of finance provides a short-term flexible buffer on a bank account?
- Venture capital
- Mortgage
- Debenture
- Bank overdraft
-
Which accounting concept assumes that a business will continue trading for the foreseeable future?
- Prudence
- Materiality
- Accruals
- Going concern
-
Which accounting concept requires expenses to be matched against the revenues they helped create?
- Realisation
- Accruals
- Consistency
- Objectivity
-
Which source of finance involves selling an asset and renting it back immediately?
- Venture capital
- Trade credit
- Debt factoring
- Sale and leaseback
-
Which accounting concept advises recording potential losses immediately but profits only when realised?
- Going concern
- Prudence
- Consistency
- Materiality
-
Which source of external finance is unavailable to a private limited company?
- Public share issue
- Debenture
- Venture capital
- Bank loan
-
What does GAAP stand for in financial accounting standards?
- Generally Accepted Accounting Practice
- Government Audited Accounting Procedures
- General Asset Alignment Process
- Global Annual Accounting Principles
-
Which accounting concept states that financial statements must be based on solid factual evidence?
- Accruals
- Subjectivity
- Objectivity
- Prudence
-
Which short-term external source of finance allows a firm to delay paying suppliers for goods?
- Trade credit
- Factoring
- Leasing
- Overdraft
-
Which accounting concept requires a firm to apply the same accounting methods every year?
- Consistency
- Accruals
- Realisation
- Materiality
-
What is the main legal requirement for published annual financial statements?
- Guaranteed profit growth
- Zero net debt
- Maximum tax avoidance
- True and fair view
-
Which accounting concept permits ignoring minor items that do not affect user decisions?
- Consistency
- Prudence
- Materiality
- Objectivity
-
Selling unpaid customer invoices to a specialist financial firm at a discount is called what?
- Venture capital
- Debt factoring
- Trade credit
- Sale and leaseback
-
Which source of finance involves borrowing money secured specifically against land or buildings?
- Debenture
- Mortgage
- Overdraft
- Trade credit
-
Which accounting concept dictates revenue is recognised only when goods or services are delivered?
- Realisation
- Prudence
- Going concern
- Accruals
-
What long-term external loan option issuing fixed-interest certificates is available to public companies?
- Trade credit
- Commercial loan
- Overdraft
- Debenture
-
A sole trader converting to a private limited company gains access to which new source of finance?
- Bank overdraft
- Trade credit
- Equity capital
- Retained profit
-
Which external macroeconomic factor directly increases the borrowing cost of a variable-rate bank loan?
- Inflation fall
- Interest rate rise
- Tax rate cut
- Exchange rate rise
-
If total revenue is £50,000 and total costs are £38,000, what is the profit?
- £12,500
- £22,000
- £88,000
- £12,000
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