BTEC LEVEL 3 BUSINESS CORE EXAM TEST ACTUAL
QUESTIONS AND SOLUTIONS RATED A+
✔✔Current Ratio - ✔✔current assets / current liabilities
✔✔Liquid Capital Ratio - ✔✔(Current Assets - Inventory) / Current Liabilities
✔✔Trade receivable days - ✔✔Trade receivables / credit sales x 365
✔✔Trade payable days - ✔✔Trade payables / credit purchases x 365
✔✔Inventory Turnover - ✔✔Average inventory / cost of sales x 365
✔✔Citizens Advice - ✔✔A charity providing free, independent, confidential and impartial
advice on many topics usually financial
✔✔Financial Ombudsman Service (FOS) - ✔✔An independent body set up by
Parliament that settles customer complaints about providers at no charge to consumers.
✔✔Financial Services Compensation Scheme - ✔✔A compensation scheme that pays
compensation to account holders of up to a certain amount per provider if the provider
goes into default (in other words cannot pay account holders the money they have in
their accounts).
✔✔Individual savings account (ISA) - ✔✔a savings account on which interest is paid
tax-free and about which there are rules, including limits on how much money you can
save.
✔✔Shares - ✔✔equal parts of the division of ownership of a corporation
✔✔current account - ✔✔account that lets you manage your day-to-day spending. You
can have your salary paid into it, set up direct debits and standing orders, and negotiate
an overdraft. Some accounts also pay interest on balances and offer cashback on
spending.
✔✔Capital employed - ✔✔the total value of all long-term finance invested in the
business
✔✔Owner's Drawing - ✔✔Any money taken out of a business usually money for the
owners personal use
✔✔Statement of Comprehensive Income - ✔✔A financial document showing a
company's income and expenditure over a particular time period, usually one year
, ✔✔Balance Sheet - ✔✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
✔✔Money Advice Service - ✔✔A consumer information service set up by the
government to help people make informed financial decisions.
✔✔price comparison sites - ✔✔Sites which aggregate price data from a variety of
sources to offer customers the best deal.
✔✔intangible assets - ✔✔long-term assets (e.g., patents, trademarks, copyrights) that
have no real physical form but do have value
✔✔Consumer Credit Protection Act - ✔✔requires lenders to fully inform consumers
about all costs of a credit purchase before an agreement is signed
✔✔Debt counsellors - ✔✔This is a professional who offers independent advice on how
best to manage debt.
✔✔Role of money - ✔✔medium of exchange, store of value, unit of account
✔✔Inflow - ✔✔Money coming into the business
✔✔Outflow - ✔✔Money coming out of the business
✔✔Money - ✔✔a current medium of exchange in the form of coins and banknotes
✔✔Unit of Account - ✔✔Allows monetary value to be placed on goods and service
✔✔Means of Account - ✔✔It allows trade, a universal standard rate
✔✔Store of Value - ✔✔allows it to be used in future as it retains value
✔✔Legal Tender - ✔✔legally recognised form of payment
✔✔Influences (Internal) - ✔✔Life stages, Culture, Life Events
✔✔Influences (External) - ✔✔Interest Rates
✔✔680 - ✔✔Price to pay for bankruptcy, can be in instalments
✔✔Advantages of ISA's - ✔✔Returns not Liable to income tax
Tax Free withdrawals
Wide range of types
Can be inherited
QUESTIONS AND SOLUTIONS RATED A+
✔✔Current Ratio - ✔✔current assets / current liabilities
✔✔Liquid Capital Ratio - ✔✔(Current Assets - Inventory) / Current Liabilities
✔✔Trade receivable days - ✔✔Trade receivables / credit sales x 365
✔✔Trade payable days - ✔✔Trade payables / credit purchases x 365
✔✔Inventory Turnover - ✔✔Average inventory / cost of sales x 365
✔✔Citizens Advice - ✔✔A charity providing free, independent, confidential and impartial
advice on many topics usually financial
✔✔Financial Ombudsman Service (FOS) - ✔✔An independent body set up by
Parliament that settles customer complaints about providers at no charge to consumers.
✔✔Financial Services Compensation Scheme - ✔✔A compensation scheme that pays
compensation to account holders of up to a certain amount per provider if the provider
goes into default (in other words cannot pay account holders the money they have in
their accounts).
✔✔Individual savings account (ISA) - ✔✔a savings account on which interest is paid
tax-free and about which there are rules, including limits on how much money you can
save.
✔✔Shares - ✔✔equal parts of the division of ownership of a corporation
✔✔current account - ✔✔account that lets you manage your day-to-day spending. You
can have your salary paid into it, set up direct debits and standing orders, and negotiate
an overdraft. Some accounts also pay interest on balances and offer cashback on
spending.
✔✔Capital employed - ✔✔the total value of all long-term finance invested in the
business
✔✔Owner's Drawing - ✔✔Any money taken out of a business usually money for the
owners personal use
✔✔Statement of Comprehensive Income - ✔✔A financial document showing a
company's income and expenditure over a particular time period, usually one year
, ✔✔Balance Sheet - ✔✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
✔✔Money Advice Service - ✔✔A consumer information service set up by the
government to help people make informed financial decisions.
✔✔price comparison sites - ✔✔Sites which aggregate price data from a variety of
sources to offer customers the best deal.
✔✔intangible assets - ✔✔long-term assets (e.g., patents, trademarks, copyrights) that
have no real physical form but do have value
✔✔Consumer Credit Protection Act - ✔✔requires lenders to fully inform consumers
about all costs of a credit purchase before an agreement is signed
✔✔Debt counsellors - ✔✔This is a professional who offers independent advice on how
best to manage debt.
✔✔Role of money - ✔✔medium of exchange, store of value, unit of account
✔✔Inflow - ✔✔Money coming into the business
✔✔Outflow - ✔✔Money coming out of the business
✔✔Money - ✔✔a current medium of exchange in the form of coins and banknotes
✔✔Unit of Account - ✔✔Allows monetary value to be placed on goods and service
✔✔Means of Account - ✔✔It allows trade, a universal standard rate
✔✔Store of Value - ✔✔allows it to be used in future as it retains value
✔✔Legal Tender - ✔✔legally recognised form of payment
✔✔Influences (Internal) - ✔✔Life stages, Culture, Life Events
✔✔Influences (External) - ✔✔Interest Rates
✔✔680 - ✔✔Price to pay for bankruptcy, can be in instalments
✔✔Advantages of ISA's - ✔✔Returns not Liable to income tax
Tax Free withdrawals
Wide range of types
Can be inherited
