1.3.2b Profit, loss and interest Quiz: Pearson Edexcel Business, Unit 3

The 20 questions

1. Revenue is £12,000 and total costs are £9,500. What is the business's result?

   • A profit of £21,500
   • A loss of £21,500
   • A loss of £2,500
   • A profit of £2,500

2. Revenue is £8,000 and total costs are £9,500. What is the business's result?

   • A loss of £17,500
   • A profit of £1,500
   • A loss of £1,500
   • A profit of £17,500

3. Revenue is £25,000 and total costs are £18,000. What is the business's result?

   • A profit of £7,000
   • A profit of £43,000
   • A loss of £43,000
   • A loss of £7,000

4. Revenue is £4,000 and total costs are £4,600. What is the business's result?

   • A profit of £8,600
   • A profit of £600
   • A loss of £600
   • A loss of £8,600

5. Revenue is £30,000 and total costs are £22,500. What is the business's result?

   • A loss of £7,500
   • A profit of £52,500
   • A profit of £7,500
   • A loss of £52,500

6. Revenue is £9,000 and total costs are £9,000. What is the business's result?

   • A profit of £18,000, found by adding revenue and costs
   • A loss of £9,000 once the costs are included
   • A profit equal to the revenue of £9,000
   • Break-even, with neither a profit nor a loss

7. A business borrows £10,000 and repays £11,200 in total. What is the interest rate on the loan?

   • 112%
   • 6%
   • 12%
   • 11%

8. A business borrows £5,000 and repays £5,750 in total. What is the interest rate on the loan?

   • 115%
   • 13%
   • 8%
   • 15%

9. A business borrows £20,000 and repays £23,000 in total. What is the interest rate on the loan?

   • 13%
   • 15%
   • 8%
   • 115%

10. A business borrows £8,000 and repays £8,800 in total. What is the interest rate on the loan?

    • 9%
    • 5%
    • 10%
    • 110%

11. Which of these is the best description of interest on a business loan?

    • The amount of profit the business keeps after paying its tax bill
    • The extra amount paid to the lender for borrowing the money
    • The fixed monthly cost of renting the premises from the landlord
    • The total value of the assets the business owns at the year end

12. A business with revenue of £15,000 and total costs of £15,000 is best described as:

    • Making a loss of £15,000 in the period
    • Making a profit equal to its total revenue
    • Breaking even, with no profit or loss
    • Making a profit of £15,000 in the period

13. Revenue is £18,000 and total costs are £12,500. What is the profit?

    • £5,500
    • £30,500
    • £11,000
    • £12,500

14. Revenue is £6,500 and total costs are £7,800. What is the loss?

    • £7,800
    • £1,300
    • £14,300
    • £2,600

15. Revenue is £42,000 and total costs are £39,000. What is the profit?

    • £6,000
    • £3,000
    • £39,000
    • £81,000

16. Revenue is £11,000 and total costs are £11,000. What is the profit or loss?

    • Neither: the business breaks even
    • A loss of £11,000 equal to total costs
    • A profit of £11,000, equal to the revenue
    • A profit of £22,000 from adding the two sums

17. Revenue is £7,600 and total costs are £5,400. What is the profit?

    • £4,400
    • £13,000
    • £2,200
    • £5,400

18. Revenue is £15,500 and total costs are £21,000. What is the loss?

    • £36,500
    • £21,000
    • £5,500
    • £11,000

19. Revenue is £23,000 and total costs are £17,250. What is the profit?

    • £17,250
    • £40,250
    • £11,500
    • £5,750

20. Revenue is £9,400 and total costs are £10,100. What is the loss?

    • £19,500
    • £10,100
    • £700
    • £1,400

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