Cash Budget333 PDF
Cash Budget333 PDF
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You have answered 5 out of 10 questions correctly.
Your percentage score is 50%.
Question 1
Your answer:
Feedback:
A cash budget should not include personal receipts and payments as the business is a separate entity.
Page reference: 5,6
Question 2
A cash budget for the six months ended 30 September 2020 shows an anticipated overdraft of approximately £9,500. Which of the following
would reduce the expected overdraft?
Your answer:
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Question 3
Mark sells goods at a gross profit margin of 30%. Which of the following statements is true?
Your answer:
Correct answer:
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Question 4
James sells bicycles at a gross profit margin of 40%. Which one of the following statements is true?
Your answer:
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7/8/2019 Oxford University Press | Online Resource Centre | Multiple choice questions
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Question 5
John has made the following predictions for his business for the first six months of trading to 30 June 2019:
The total cash received from customers during the six months ended 30 June 2019, will be:
Your answer:
a) £165,000.
Correct answer:
d) £130,000.
Feedback:
Cash received is £20k February, £20k March, £20k April, £35k May and £35k June = £130,000.
Page reference: 13
Question 6
John has made the following predictions for his business for the first six months of trading to 30 June 2019:
Your answer:
b) £20,000.
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Question 7
John has made the following predictions for his business for the first six months of trading to 30 June 2019:
If goods are sold at a gross profit margin of 40%, and goods are replaced as soon as they are sold, the amount payable to suppliers in March
2019, will be:
Your answer:
d) £14,000.
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7/8/2019 Oxford University Press | Online Resource Centre | Multiple choice questions
Correct answer:
c) £12,000.
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Question 8
Your answer:
c) £(1,000).
Correct answer:
a) £(3,000).
Feedback:
The balance carried forward at the end of June is £(1,000), with net payments for July of £(2,000), giving a July balance of £(3,000).
Page reference: 13
Question 9
Which of the following overdraft facilities would you advise Charlie to request for the three months ended 30th November?
Correct answer:
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7/8/2019 Oxford University Press | Online Resource Centre | Multiple choice questions
An overdraft of a little over the largest overdrawn amount is required, this is £20,000.
Page reference: 13
Question 10
Your answer:
d) Credit purchases are where the goods or services have not yet been received by the business and payment has not yet been made.
Feedback:
Credit purchases are where the good or services have been received by the business but payment has not yet been made.
Page reference: 13
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