1) What is used to show the value of the business on a particular date? a) A trading account b) A Cash flow statement c) A balance sheet 2) What is used to show the gross profit of a business over a year? a) Trading account b) A cash flow statement c) A balance sheet 3) What is used to show the flow of money in and out of the business over a year? a) Cash flow statement b) Trading account c) Balance sheet 4) What does the profit and loss of account show? a) Gross profit b) Net profit c) Cash flow 5) If the cost of sales is 20,000 and the revenue is £60,000 then what is the gross profit? a) - £40,000 b) £40000 c) Cannot be worked out 6) If the gross profit is £60000 and other expenses are 100000 then what is net profit? a) -£40000 b) £40000 c) Cannot be worked out 7) If current assets are £50000 and current liabilities are £90000, then what is net profit? a) -£40000 b) £40000 c) Cannot be worked out 8) What does the balance sheet show? a) The value of a business on a particular date b) Profit earned over a trading period c) The cash of near- cash available to the firm 9) If current assets are £50000 and current liabilities are 90000 then what is the business? a) Insolvent b) Solvent c) Making a loss 10) What makes a business solvent? a) It has enough profit b) It has enough working capital c) It has enough fixed assets

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