What are the four elements needed for effective business management?, Planning, organisation, direction, and control., £220,000., Directors’ salaries, office wages, rent, bank charges, heating, telephone, or accountancy fees., Trading account, profit and loss account, balance sheet, and directors’ report., Is an estimate legally binding?, £85,000., A current account., £70,000., No, an estimate is not legally binding., What is a quotation?, A fixed dividend paid before ordinary shareholders., Trading account, profit and loss account, balance sheet, and directors’ report., 11.18%., A stated price for services with terms and conditions, usually valid for a set time., What does an order show?, That the customer has accepted the quotation and instructs the contract to be carried out., Debts lasting more than one financial year, such as loans, debentures, and mortgages., Fixed assets plus current assets minus current liabilities., 31 January and 31 July., What is a pro-forma invoice used for?, 8.69%., Current assets divided by current liabilities., To request payment upfront., After a completed job, requesting the agreed payment., When is an invoice issued?, 31 October., A variable dividend., After a completed job, requesting the agreed payment., No, an estimate is not legally binding., When is a credit note issued?, One calendar month plus 7 days., A fixed dividend paid before ordinary shareholders., 11.18%., When a customer has been overcharged or goods have been returned., When is a debit note usually issued?, When an invoice has been undercharged and there is an outstanding balance., When turnover is £6.5 million or more., 1.30:1., People or companies that owe money to the business., What does a statement of account show?, 31 October., The full amount a customer owes, including outstanding balances., Standing order., £1,240,000., Which bank account is used for day-to-day business transactions?, A current account., Assets lasting more than one year, such as vehicles, buildings, plant, and equipment., The full amount a customer owes, including outstanding balances., No, invoiced sales are not the same as cash received., What is a deposit account used for?, Current assets divided by current liabilities., Holding funds not needed immediately., By the 22nd of the month following the end of the period., Quarterly., How long is an overdraft usually valid for?, Over £96.00., 12 months., 31 January., Within 9 months of the end of the relevant tax year., Which payment method can vary in amount and is collected by the payee?, Its members/shareholders., Slow-paying debtors, too much cash tied up in stock, or inability to meet debts when due., Direct debit., People or companies that owe money to the business., Which payment method is a fixed amount controlled by the account holder?, Standing order., Day-to-day assets such as cash, stock, spare parts, and debtors., £220,000., Its members/shareholders., What is factoring?, VAT paid to suppliers on purchases., Selling invoices to a factoring company to improve cash flow., Current assets divided by current liabilities., After a completed job, requesting the agreed payment., Who owns a limited company?, It reduces profitability and shows costs are out of proportion to income., Holding funds not needed immediately., Its members/shareholders., Direct debit., What dividend do ordinary shareholders receive?, Debts lasting more than one financial year, such as loans, debentures, and mortgages., A variable dividend., 25%., 15%., What dividend do preference shareholders receive?, 6 years., A fixed dividend paid before ordinary shareholders., 9 months and 1 day after the company’s financial year end., 19%., What are fixed assets?, Assets lasting more than one year, such as vehicles, buildings, plant, and equipment., 1:1., That the customer has accepted the quotation and instructs the contract to be carried out., £85,000., What are current assets?, Day-to-day assets such as cash, stock, spare parts, and debtors., One calendar month plus 7 days., £85,000., Current assets divided by current liabilities., What are long-term liabilities?, Over £96.00., By 5 October., Short-term debts due within the financial year, such as overdrafts and creditors., Debts lasting more than one financial year, such as loans, debentures, and mortgages., What are current liabilities?, Assets lasting more than one year, such as vehicles, buildings, plant, and equipment., 21.87%., £220,000., Short-term debts due within the financial year, such as overdrafts and creditors., What are debtors?, 2:1., People or companies that owe money to the business., Quarterly., That the customer has accepted the quotation and instructs the contract to be carried out., What are creditors?, 25%., People or companies the business owes money to., £672,000., Assets lasting more than one year, such as vehicles, buildings, plant, and equipment., What is the formula for gross profit?, Directors’ salaries, office wages, rent, bank charges, heating, telephone, or accountancy fees., Turnover minus direct costs., Planning, organisation, direction, and control., By 5 October., What is the formula for net profit?, £1,240,000., Day-to-day assets such as cash, stock, spare parts, and debtors., Gross profit minus indirect costs., Main rate with marginal relief on a sliding scale., Which account calculates gross profit?, The trading account., 31 October., 9 months and 1 day after the company’s financial year end., A variable dividend., Which account calculates net profit before tax?, £70,000., The profit and loss account., 11.18%., People or companies that owe money to the business., Give three examples of direct costs in a transport business., Planning, organisation, direction, and control., £1,000,000., Drivers’ wages, fuel, vehicle insurance, maintenance, or vehicle taxation., That the customer has accepted the quotation and instructs the contract to be carried out., Give three examples of indirect costs in a transport business., Assets lasting more than one year, such as vehicles, buildings, plant, and equipment., Directors’ salaries, office wages, rent, bank charges, heating, telephone, or accountancy fees., Main rate with marginal relief on a sliding scale., Its members/shareholders., What is the formula for working capital?, Within 9 months of the end of the relevant tax year., People or companies that owe money to the business., Current assets minus current liabilities., 1.30:1., What is the formula for the working capital ratio (liquidity ratio)?, After a completed job, requesting the agreed payment., £1,240,000., £65,000., Current assets divided by current liabilities., What is the ideal working capital ratio?, 2:1., 23.70%., When turnover is £6.5 million or more., Turnover minus direct costs., What is the formula for the acid test ratio?, 1.30:1., £65,000., Current assets minus stock, divided by current liabilities., By 5 October., What is the ideal minimum acid test ratio?, 9 months and 1 day after the company’s financial year end., 1:1., 80.12%., Within 9 months of the end of the relevant tax year., What is the formula for capital employed?, A stated price for services with terms and conditions, usually valid for a set time., 9 months and 1 day after the company’s financial year end., 80.12%., Fixed assets plus current assets minus current liabilities., What is the formula for return on capital employed (ROCE)?, A current account., Class 4., Net profit divided by capital employed, multiplied by 100., Debts lasting more than one financial year, such as loans, debentures, and mortgages., In the worked example, what was the business turnover increase from 2018 to 2019?, Holding funds not needed immediately., £220,000., 6 years., £294,000., In the worked example, what was the turnover percentage increase from 2018 to 2019?, 19%., What the company owns and owes: assets, liabilities, and capital., 6.96%., Holding funds not needed immediately., In the worked example, what percentage of turnover was taken up by direct costs?, VAT paid to suppliers on purchases., 6.96%., Turnover minus direct costs., 80.12%., In the worked example, what was the gross profit in money terms?, 31 October., £672,000., Drivers’ wages, fuel, vehicle insurance, maintenance, or vehicle taxation., 6.96%., In the worked example, what was the gross profit percentage?, £1,000,000., No., Gross profit minus indirect costs., 19.88%., In the worked example, what were indirect costs as a percentage of turnover?, 11.18%., Current assets minus stock, divided by current liabilities., Assets lasting more than one year, such as vehicles, buildings, plant, and equipment., Holding funds not needed immediately., In the worked example, what was the net profit in money terms?, 6.96%., £294,000., 31 January and 31 July., The profit and loss account., In the worked example, what was the net profit percentage of turnover?, 8.69%., 15%., 1.10:1., Class 4., In the worked example, by how much did drivers’ wages rise?, £1,000,000., Current assets divided by current liabilities., £70,000., 30 days., In the worked example, by what percentage did drivers’ wages rise?, 8.69%., 1.30:1., 21.87%., £294,000., Why is it a concern if direct costs rise faster than turnover?, Current assets divided by current liabilities., When an invoice has been undercharged and there is an outstanding balance., 8.69%., It reduces profitability and shows costs are out of proportion to income., What does a balance sheet show?, £1,000,000., The full amount a customer owes, including outstanding balances., What the company owns and owes: assets, liabilities, and capital., 8.69%., What must annual company accounts filed at Companies House include?, Fixed assets plus current assets minus current liabilities., Trading account, profit and loss account, balance sheet, and directors’ report., 19%., £65,000., When must a company’s annual accounts be audited?, When turnover is £6.5 million or more., Net profit divided by capital employed, multiplied by 100., A fixed dividend paid before ordinary shareholders., A current account., What was the working capital in the worked example?, 12 months., £65,000., Debts lasting more than one financial year, such as loans, debentures, and mortgages., 31 January., What was the liquidity ratio in the worked example?, 1.30:1., 19.88%., Selling invoices to a factoring company to improve cash flow., Turnover minus direct costs., What was the acid test ratio in the worked example?, 1.10:1., 12 months., Turnover minus direct costs., 5 years., What was the capital employed in the worked example?, Class 4., 31 January., £1,240,000., 5 years., What was the ROCE in the worked example?, £294,000., Assets lasting more than one year, such as vehicles, buildings, plant, and equipment., 23.70%., 20%., In cash flow terms, are invoiced sales the same as cash received?, A stated price for services with terms and conditions, usually valid for a set time., Within 9 months of the end of the relevant tax year., No, invoiced sales are not the same as cash received., Selling invoices to a factoring company to improve cash flow., What can cause cash flow problems even when a business is profitable?, Over £96.00., By the 22nd of the month following the end of the period., What the company owns and owes: assets, liabilities, and capital., Slow-paying debtors, too much cash tied up in stock, or inability to meet debts when due., How often is VAT return submission and payment normally made?, £1,000,000., Quarterly., 15%., A stated price for services with terms and conditions, usually valid for a set time., What is the VAT registration threshold if a business expects to reach it in the next 30 days?, 1.10:1., VAT charged to customers on sales., 20%., £85,000., After reaching the VAT threshold, how long does a business have to register?, 11.18%., 30 days., 31 January., Holding funds not needed immediately., What is the standard VAT rate in the material?, When an invoice has been undercharged and there is an outstanding balance., Over £96.00., 19%., 20%., What is output VAT?, People or companies the business owes money to., Turnover minus direct costs., VAT charged to customers on sales., Current assets minus current liabilities., What is input VAT?, VAT paid to suppliers on purchases., Fixed assets plus current assets minus current liabilities., 19%., Class 4., What is the deadline for submitting and paying VAT after the end of an accounting period?, Net profit divided by capital employed, multiplied by 100., Limited companies only., When an invoice has been undercharged and there is an outstanding balance., One calendar month plus 7 days., For how long must VAT records be kept?, 31 January., After a completed job, requesting the agreed payment., 6 years., A variable dividend., Within what time must EU VAT reclaim claims be made?, 21.87%., Assets lasting more than one year, such as vehicles, buildings, plant, and equipment., The full amount a customer owes, including outstanding balances., Within 9 months of the end of the relevant tax year., How long is a VAT66 Certificate of Status valid for?, Current assets minus stock, divided by current liabilities., 12 months., Its members/shareholders., 1.30:1., Who pays corporation tax?, Standing order., Limited companies only., 8.69%., VAT charged to customers on sales., Do sole traders and partnerships pay corporation tax?, £1,000,000., No., 12 months., 19%., What corporation tax rate applies to profits under £50,000?, That the customer has accepted the quotation and instructs the contract to be carried out., 19%., 30 days., Direct debit., What corporation tax rate applies to profits over £250,000?, 25%., Limited companies only., £85,000., 12 months., What applies to companies with profits between £50,000 and £250,000?, Main rate with marginal relief on a sliding scale., £672,000., Debts lasting more than one financial year, such as loans, debentures, and mortgages., That the customer has accepted the quotation and instructs the contract to be carried out., What is the maximum Annual Investment Allowance from 1 April 2023?, £1,000,000., No., Net profit divided by capital employed, multiplied by 100., 1.30:1., By when must corporation tax be paid?, Current assets minus stock, divided by current liabilities., 9 months and 1 day after the company’s financial year end., 2:1., Planning, organisation, direction, and control., By what date must PAYE income tax and National Insurance usually be paid to HMRC?, By the 22nd of the month following the end of the period., Main rate with marginal relief on a sliding scale., A stated price for services with terms and conditions, usually valid for a set time., The full amount a customer owes, including outstanding balances., By what date must a self-employed person register in their second tax year?, 1.10:1., VAT charged to customers on sales., By 5 October., Holding funds not needed immediately., When are self-assessment tax payments usually due?, Class 4., 31 January and 31 July., Current assets minus stock, divided by current liabilities., It reduces profitability and shows costs are out of proportion to income., By what date must paper self-assessment returns be submitted?, 31 October., Directors’ salaries, office wages, rent, bank charges, heating, telephone, or accountancy fees., Limited companies only., After a completed job, requesting the agreed payment., By what date must online self-assessment returns be submitted?, 31 January., By the 22nd of the month following the end of the period., 8.69%., Selling invoices to a factoring company to improve cash flow., What is the late filing penalty stated for missing self-assessment deadlines?, 2:1., £100., £70,000., Its members/shareholders., How long must self-employed workers keep accounting records?, Trading account, profit and loss account, balance sheet, and directors’ report., 5 years., 1.10:1., By the 22nd of the month following the end of the period., Which National Insurance class applies to self-employed people with profits over £12,570?, Directors’ salaries, office wages, rent, bank charges, heating, telephone, or accountancy fees., Class 4., 25%., Gross profit minus indirect costs., What employer National Insurance rate is given in the material?, 15%., Class 4., 9 months and 1 day after the company’s financial year end., 25%., Above what employee earnings figure does the material state employer National Insurance is payable?, 9 months and 1 day after the company’s financial year end., Over £96.00., 6.96%., 19.88%.

CG TM Financial management Quiz

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