BTEC LEVEL 3 BUSINESS MAIN EXAMINATION SET
QUESTIONS AND SOLUTIONS RATED A+
✔✔Types of current Account - ✔✔Standard, Packaged/premium, Basic, Student
✔✔Overdraft - ✔✔Allows you to withdraw money that you do not have from a current
account
✔✔Personal Loan - ✔✔Borrowing of money usually for a specific purpose which is
repaid in regular instalments
✔✔Hire Purchase - ✔✔Allows use of item immediately while paying for it in regular
instalments, you do not own the production until all payments made.
✔✔Mortgage - ✔✔Long term loan, usually paid back over long periods of time 25 years.
Secured against an item.
✔✔Credit Cards - ✔✔Buy no pay later. Can effect Credit Score. Interest charged on
payments made. Added security
✔✔Payday Loans - ✔✔Short term source of finance, used to bridge gap between
paydays. Usually small amounts with very high interest
✔✔Deposit and Savings Account - ✔✔These are accounts where interest is paid on
balances and the holder usually needs to give notice before withdrawingfunds
✔✔Premium Bonds - ✔✔Government scheme that allows individuals to save up to a set
amount by buying bonds. Each bond is placed into raffles for the change to win money
✔✔Bonds and Guilts - ✔✔Fixed term securities where the lender lends money to
companies and governments in return for interest payment. The money is invested for a
specified time frame
✔✔total cash inflow - total cash outflow - ✔✔Net Cash Flow Equation
✔✔Opening Balance + Net Cash Flow - ✔✔Closing Balance Equation
✔✔Selling price x quantity sold - ✔✔Total Revenue Equation
✔✔Fixed costs + total variable costs - ✔✔Total Costs Equation
✔✔Total Revenue - Total Costs - ✔✔profit equation
✔✔Sales Revenue - Total Variable Costs - ✔✔Total Contribution Equation
, ✔✔Selling Price - Variable Costs - ✔✔contribution per unit Equation
✔✔Contribution per unit X Margin of safety - ✔✔Profit (Using Contribution) Equation
✔✔Total Fixed Cost / Unit Contribution - ✔✔Break even output equation
✔✔Actual Sales - Break even output - ✔✔Margin of safety equation
✔✔Unit Price x Quantity sold - ✔✔Revenue Equation
✔✔Sales Revenue - Cost of goods sold - ✔✔Gross Profit Equation
✔✔Opening inventory + purchases - closing inventory - ✔✔Cost of goods sold Equation
✔✔Gross Profit - expenses + other income - ✔✔Profit/loss of year equation
✔✔Cost - depreciation - ✔✔Net book value equation
✔✔Current Assets - Current liabilities - ✔✔Net Current Assets equation
✔✔Non current assets + Net Current Assets - Long term liabilities - ✔✔Net Assets
equation
✔✔Opening Capital + Profit of the year - ✔✔capital employed equation
✔✔Net Assets = capital employed - ✔✔Balance Sheets
✔✔Gross Profit/Revenue x 100 - ✔✔Gross Profit Margin ratio
✔✔Gross Profit/Cost of sales x 100 - ✔✔Mark-up ratio
✔✔Profit/revenue x 100 - ✔✔Profit Margin ratio
✔✔profit/capital employed x 100 - ✔✔Return on capital employed ratio
✔✔Current Assets / current liabilities - ✔✔Current ratio
✔✔(Current Assets - inventory)/current liabilities - ✔✔Liquid Capital ratio
✔✔Trade receivable/credit sales x 365 - ✔✔Trade receivable days
✔✔Trade payable/credit sales x 365 - ✔✔Trade payable days
QUESTIONS AND SOLUTIONS RATED A+
✔✔Types of current Account - ✔✔Standard, Packaged/premium, Basic, Student
✔✔Overdraft - ✔✔Allows you to withdraw money that you do not have from a current
account
✔✔Personal Loan - ✔✔Borrowing of money usually for a specific purpose which is
repaid in regular instalments
✔✔Hire Purchase - ✔✔Allows use of item immediately while paying for it in regular
instalments, you do not own the production until all payments made.
✔✔Mortgage - ✔✔Long term loan, usually paid back over long periods of time 25 years.
Secured against an item.
✔✔Credit Cards - ✔✔Buy no pay later. Can effect Credit Score. Interest charged on
payments made. Added security
✔✔Payday Loans - ✔✔Short term source of finance, used to bridge gap between
paydays. Usually small amounts with very high interest
✔✔Deposit and Savings Account - ✔✔These are accounts where interest is paid on
balances and the holder usually needs to give notice before withdrawingfunds
✔✔Premium Bonds - ✔✔Government scheme that allows individuals to save up to a set
amount by buying bonds. Each bond is placed into raffles for the change to win money
✔✔Bonds and Guilts - ✔✔Fixed term securities where the lender lends money to
companies and governments in return for interest payment. The money is invested for a
specified time frame
✔✔total cash inflow - total cash outflow - ✔✔Net Cash Flow Equation
✔✔Opening Balance + Net Cash Flow - ✔✔Closing Balance Equation
✔✔Selling price x quantity sold - ✔✔Total Revenue Equation
✔✔Fixed costs + total variable costs - ✔✔Total Costs Equation
✔✔Total Revenue - Total Costs - ✔✔profit equation
✔✔Sales Revenue - Total Variable Costs - ✔✔Total Contribution Equation
, ✔✔Selling Price - Variable Costs - ✔✔contribution per unit Equation
✔✔Contribution per unit X Margin of safety - ✔✔Profit (Using Contribution) Equation
✔✔Total Fixed Cost / Unit Contribution - ✔✔Break even output equation
✔✔Actual Sales - Break even output - ✔✔Margin of safety equation
✔✔Unit Price x Quantity sold - ✔✔Revenue Equation
✔✔Sales Revenue - Cost of goods sold - ✔✔Gross Profit Equation
✔✔Opening inventory + purchases - closing inventory - ✔✔Cost of goods sold Equation
✔✔Gross Profit - expenses + other income - ✔✔Profit/loss of year equation
✔✔Cost - depreciation - ✔✔Net book value equation
✔✔Current Assets - Current liabilities - ✔✔Net Current Assets equation
✔✔Non current assets + Net Current Assets - Long term liabilities - ✔✔Net Assets
equation
✔✔Opening Capital + Profit of the year - ✔✔capital employed equation
✔✔Net Assets = capital employed - ✔✔Balance Sheets
✔✔Gross Profit/Revenue x 100 - ✔✔Gross Profit Margin ratio
✔✔Gross Profit/Cost of sales x 100 - ✔✔Mark-up ratio
✔✔Profit/revenue x 100 - ✔✔Profit Margin ratio
✔✔profit/capital employed x 100 - ✔✔Return on capital employed ratio
✔✔Current Assets / current liabilities - ✔✔Current ratio
✔✔(Current Assets - inventory)/current liabilities - ✔✔Liquid Capital ratio
✔✔Trade receivable/credit sales x 365 - ✔✔Trade receivable days
✔✔Trade payable/credit sales x 365 - ✔✔Trade payable days
