AQA AS LEVEL BUSINESS 7131 UNITS 1-6
TEST WITH COMPLETE SOLUTIONS 2026
Financial bobjective b- b bcorrect banswer-Goal bor btarget bpursued bby bthe bfinance
bdepartment b(or bfunction) bwithin ban borganisation
Profit b- b bcorrect banswer-Measures bthe bextent bto bwhich brevenues bfrom bselling ba
bproduct bover bsome btime bperiod bexceed bthe bcosts bincurred bin bproducing bit
Cash bflow b- b bcorrect banswer-The bmovement bof bcash binto band bout bof ba bbusiness
bover btime
Income bstatement b- b bcorrect banswer-Records ba bbusiness' bsales brevenue bover ba
btrading bperiod band ball brelevant bcosts bincurred bas bwell bas bthe bbusiness' bprofit bor
bloss
Gross bprofit b- b bcorrect banswer-Income breceived bfrom bsales bminus bthe bcost bof
bgoods band bservices bsold
Direct bcosts b- b bcorrect banswer-Expenditure bthat bcan bclearly bbe ballocated bto ba
bparticular bproduct bor barea bof bthe bbusiness be.g. braw bmaterials band bcomponents
Indirect bcosts b- b bcorrect banswer-Expenditure bthat brelates bto ball baspects bof ba
bbusiness' bactivities, bsuch bas bmaintenance bcosts bfor bbuildings bor bsenior bmanagers'
bsalaries
Operating bprofit b- b bcorrect banswer-The bfinancial bsurplus barising bfrom ba bbusiness'
bnormal btrading bactivities band bbefore btaxation
Profit bfor bthe byear b- b bcorrect banswer-A bmeasure bof ba bbusiness' bprofits bthat btakes
binto baccount ba bwider brange bof bexpenditures band bincomes bincluding btaxation
Revenues b- b bcorrect banswer-The bearnings bor bincome bgenerated bby ba bfirm bas ba
bresult bof bits btrading bactivities
Objectives b- b bcorrect banswer-The bmedium bto blong bterm bgoals bestablished bto
bcoordinate bthe bbusiness
Investment b- b bcorrect banswer-The bpurchase bof bassets bsuch bas bproperty, bvehicles
band bmachinery bthat bwill bbe bused bfor ba bconsiderable btime bby bthe bbusiness
Non-current bassets b- b bcorrect banswer-Items bthat ba bbusiness bowns band bwhich bit
bexpects bto bretain bfor bone byear bor blonger
Capital bexpenditure b- b bcorrect banswer-Spending bundertaken bby bbusinesses bto
bpurchase bnon-current bassets bsuch bas bvehicles band bproperty b(it bis banother bform bof
binvestment)
, Capital bstructure b- b bcorrect banswer-Refers bto bthe bway bin bwhich ba bbusiness bhas
braised bthe bcapital brequired bto bpurchase bits bassets
Budgets b- b bcorrect banswer-Financial bplans bthat bforecast brevenue bfrom bsales band
bexpected bcosts bover ba btime bperiod
Variance banalysis b- b bcorrect banswer-The bprocess bof binvestigating bany bdifferences
bbetween bforecast bdata band bactual bfigures
Cash bflow bforecasts b- b bcorrect banswer-State bthe binflows band boutflows bof bcash bthat
bthe bmanagers bof ba bbusiness bexpect bover bsome bfuture bperiod
Trade bcredit b- b bcorrect banswer-The bperiod bof btime bgiven bby bsuppliers bbefore
bcustomers bhave bto bpay bfor bgoods band bservices
Break beven boutput b- b bcorrect banswer-That blevel bof boutput bor bproduction bat bwhich
btotal bcosts bexactly bequal brevenue bfrom bsales
Contribution b- b bcorrect banswer-The bdifference bbetween brevenue band bvariable bcosts
Margin bof bsafety b- b bcorrect banswer-Measures bthe bamount bby bwhich ba bbusiness'
bcurrent blevel bof boutput bexceeds bbreak-even boutput
Profitability b- b bcorrect banswer-A bmeasure bof bfinancial bperformance bthat bcompares
ba bbusiness' bprofits bto bsome bother bfactors bsuch bas brevenue
Profit bmargin b- b bcorrect banswer-A bratio bthat bexpresses ba bbusiness' bprofit bas ba
bpercentage bof bits brevenues bover bsome btrading bperiod
Big bdata b- b bcorrect banswer-A bterm bused bto bdescribe ba bmassive bvolume bof bboth
borganised band bnon-organised binformation bthat bis bvery blarge
Primary bmarket bresearch b- b bcorrect banswer-Gathers bdata bfor bthe bfirst btime bfor ba
bspecific bpurpose
Internal bsource bof bfinance b- b bcorrect banswer-A bsource bof bfinance bthat bexists bwithin
bthe bbusiness
External bsource bof bfinance b- b bcorrect banswer-An binjection bof bfunds binto bthe
bbusiness bfrom bindividuals, bother bbusinesses bor bfinancial binstitutions
Short bterm bfinance b- b bcorrect banswer-Finance bneeded bfor ba blimited bperiod bof btime,
bnormally bless bthan bone byear
Long bterm bfinance b- b bcorrect banswer-Sources bof bfinance bthat bare bneeded bover ba
blonger bperiod bof btime, busually bover ba byear
Bank bloan b- b bcorrect banswer-The bamount bof bmoney bprovided bby ba bbusiness bfor ba
bstated bpurpose bin breturn bfor ba bpayment bin ba bthe bform bof binterest bcharges
TEST WITH COMPLETE SOLUTIONS 2026
Financial bobjective b- b bcorrect banswer-Goal bor btarget bpursued bby bthe bfinance
bdepartment b(or bfunction) bwithin ban borganisation
Profit b- b bcorrect banswer-Measures bthe bextent bto bwhich brevenues bfrom bselling ba
bproduct bover bsome btime bperiod bexceed bthe bcosts bincurred bin bproducing bit
Cash bflow b- b bcorrect banswer-The bmovement bof bcash binto band bout bof ba bbusiness
bover btime
Income bstatement b- b bcorrect banswer-Records ba bbusiness' bsales brevenue bover ba
btrading bperiod band ball brelevant bcosts bincurred bas bwell bas bthe bbusiness' bprofit bor
bloss
Gross bprofit b- b bcorrect banswer-Income breceived bfrom bsales bminus bthe bcost bof
bgoods band bservices bsold
Direct bcosts b- b bcorrect banswer-Expenditure bthat bcan bclearly bbe ballocated bto ba
bparticular bproduct bor barea bof bthe bbusiness be.g. braw bmaterials band bcomponents
Indirect bcosts b- b bcorrect banswer-Expenditure bthat brelates bto ball baspects bof ba
bbusiness' bactivities, bsuch bas bmaintenance bcosts bfor bbuildings bor bsenior bmanagers'
bsalaries
Operating bprofit b- b bcorrect banswer-The bfinancial bsurplus barising bfrom ba bbusiness'
bnormal btrading bactivities band bbefore btaxation
Profit bfor bthe byear b- b bcorrect banswer-A bmeasure bof ba bbusiness' bprofits bthat btakes
binto baccount ba bwider brange bof bexpenditures band bincomes bincluding btaxation
Revenues b- b bcorrect banswer-The bearnings bor bincome bgenerated bby ba bfirm bas ba
bresult bof bits btrading bactivities
Objectives b- b bcorrect banswer-The bmedium bto blong bterm bgoals bestablished bto
bcoordinate bthe bbusiness
Investment b- b bcorrect banswer-The bpurchase bof bassets bsuch bas bproperty, bvehicles
band bmachinery bthat bwill bbe bused bfor ba bconsiderable btime bby bthe bbusiness
Non-current bassets b- b bcorrect banswer-Items bthat ba bbusiness bowns band bwhich bit
bexpects bto bretain bfor bone byear bor blonger
Capital bexpenditure b- b bcorrect banswer-Spending bundertaken bby bbusinesses bto
bpurchase bnon-current bassets bsuch bas bvehicles band bproperty b(it bis banother bform bof
binvestment)
, Capital bstructure b- b bcorrect banswer-Refers bto bthe bway bin bwhich ba bbusiness bhas
braised bthe bcapital brequired bto bpurchase bits bassets
Budgets b- b bcorrect banswer-Financial bplans bthat bforecast brevenue bfrom bsales band
bexpected bcosts bover ba btime bperiod
Variance banalysis b- b bcorrect banswer-The bprocess bof binvestigating bany bdifferences
bbetween bforecast bdata band bactual bfigures
Cash bflow bforecasts b- b bcorrect banswer-State bthe binflows band boutflows bof bcash bthat
bthe bmanagers bof ba bbusiness bexpect bover bsome bfuture bperiod
Trade bcredit b- b bcorrect banswer-The bperiod bof btime bgiven bby bsuppliers bbefore
bcustomers bhave bto bpay bfor bgoods band bservices
Break beven boutput b- b bcorrect banswer-That blevel bof boutput bor bproduction bat bwhich
btotal bcosts bexactly bequal brevenue bfrom bsales
Contribution b- b bcorrect banswer-The bdifference bbetween brevenue band bvariable bcosts
Margin bof bsafety b- b bcorrect banswer-Measures bthe bamount bby bwhich ba bbusiness'
bcurrent blevel bof boutput bexceeds bbreak-even boutput
Profitability b- b bcorrect banswer-A bmeasure bof bfinancial bperformance bthat bcompares
ba bbusiness' bprofits bto bsome bother bfactors bsuch bas brevenue
Profit bmargin b- b bcorrect banswer-A bratio bthat bexpresses ba bbusiness' bprofit bas ba
bpercentage bof bits brevenues bover bsome btrading bperiod
Big bdata b- b bcorrect banswer-A bterm bused bto bdescribe ba bmassive bvolume bof bboth
borganised band bnon-organised binformation bthat bis bvery blarge
Primary bmarket bresearch b- b bcorrect banswer-Gathers bdata bfor bthe bfirst btime bfor ba
bspecific bpurpose
Internal bsource bof bfinance b- b bcorrect banswer-A bsource bof bfinance bthat bexists bwithin
bthe bbusiness
External bsource bof bfinance b- b bcorrect banswer-An binjection bof bfunds binto bthe
bbusiness bfrom bindividuals, bother bbusinesses bor bfinancial binstitutions
Short bterm bfinance b- b bcorrect banswer-Finance bneeded bfor ba blimited bperiod bof btime,
bnormally bless bthan bone byear
Long bterm bfinance b- b bcorrect banswer-Sources bof bfinance bthat bare bneeded bover ba
blonger bperiod bof btime, busually bover ba byear
Bank bloan b- b bcorrect banswer-The bamount bof bmoney bprovided bby ba bbusiness bfor ba
bstated bpurpose bin breturn bfor ba bpayment bin ba bthe bform bof binterest bcharges
