BTEC business Practice Questions And 100% Correct Answers Success Guaranteed.

price x amount sold - correct answer revenue formula revenue - total costs - correct answer profit formula variable costs + fixed costs - correct answer total costs inflow - outflows - correct answer net cash flow formula net cash flow + opening balance - correct answer closing balance formula predicted output - break even point - correct answer margin of safety formula gross profit - expenditure - correct answer net profit formula revenue(sales) - cost of sales - correct answer gross profit formula cost per unit x output - correct answer variable costs formula the cost that stay the same depending on the output e.g rent, salaries - correct answer fixed costs the costs that can change depending on the output e.g wages, raw materials - correct answer variable costs things you own - correct answer assets can turn into cash easily e.g stock, cash, debtors - correct answer current assets cant be turn into money quickly(stuck to the ground) e.g land, properties, machinery - correct answer fixed assets what businesses owe to other businesses - correct answer liabilities short term debts ( pay within a year) e.g bills, overdrafts, trade credit - correct answer current liabilities longer term debts e.g bank loan, mortgage - correct answer long term liabilities where a business gets it money from - correct answer capital where a business gets its money from inside a business e.g sales, shares - correct answer internal capital where a business gets its money from outside a business e.g - correct answer external capital money going into a business e.g sales, bank, interest - correct answer inflows money going out of a business e.g bills, rent, wages - correct answer outflows costs that go directly into the making of the product e.g raw materials - correct answer direct costs costs that do not go directly into making the product e.g rent - correct answer indirect costs total assets- current liabilities - correct answer working capital formula working capital - long term liabilities - correct answer net assets employed