BTEC LEVEL 3 BUSINESS 2026 TEST PAPER QUESTIONS AND
SOLUTIONS RATED A+
✔✔Trade payable - ✔✔Money the business owes from supplies purchased but not yet
paid for.
✔✔Fixed assts - ✔✔Items of value
owned by a business that are
likely to stay in the business
for more than one year. Also
known as non-current assets.
✔✔Asset - ✔✔Any item of value owned by an individual or firm.
✔✔Commission - ✔✔A fee paid to a salesperson
in exchange for services in
facilitating or completing a
sales transaction.
✔✔Capital items - ✔✔Assets bought from capital expenditure.
✔✔Statement of financial situation - ✔✔A financial document that shows the net worth
of a business by balancing its assets against its liabilities. It is often called a balance
sheet.
✔✔Depreciation (Description) - ✔✔An accounting technique used to spread the cost of
an asset over its useful life.
✔✔Internal sources of finance - ✔✔Money available to fund expenditure within the
business
✔✔Owner's Capital - ✔✔This is money invested in the business from the owner's
personal savings.
✔✔Loans - ✔✔Money borrowed from a financial institution normally for a set period of
time and for a specific purpose.
✔✔Crowd-funding - ✔✔This involves attracting investment from a large number of
speculative investors many whom may invest relatively small amounts.
✔✔Mortgages - ✔✔These are long-term loans, normally around 25 years, that are
secured against a specific asset, for example a building.
✔✔Retained profit - ✔✔Profit kept in the business to fund future expenditure
, ✔✔Net Current Assets - ✔✔Current assets minus current liabilities shows the money
available in the business to fund day-to-day expenditure
✔✔Sale of Assets - ✔✔Selling an item of worth owned by a business in order to achieve
an immediate cash injection
✔✔Capital income - ✔✔The money invested by the owners or other investors that is
used to set up the business or buy additional equipment
✔✔Shares - ✔✔A company is when a business is registered with Companies house
and issues ______ to its ______holders
✔✔Owner's capital - ✔✔Money invested in a business from the owner's personal
savings
✔✔Debentures - ✔✔Medium- to long-term sources of capital income
✔✔Revenue income - ✔✔The money that comes into the business from performing
day-to-day function
✔✔Sales - ✔✔The money coming in from the sales of goods or services
✔✔Rent received - ✔✔A business that owns property and charges others for use of all
or part of that property will receive rent as their main source of income.
✔✔Commission Received - ✔✔A business may sell products or services as an agent of
another business.
✔✔Interest Received - ✔✔Money earned on savings or lending.
✔✔Discount Received - ✔✔When a business is given a percentage off a sale, normally
in return for quick payment or a bulk order.
✔✔Goodwill - ✔✔When you buy an existing business, its name and reputation will
already be known, and it may already have an established customer base or set of
clients.
✔✔Patents - ✔✔The legal protection of an invention, such as a unique feature of a
product or a new process.
✔✔Trademarks - ✔✔A symbol, logo, brand name, words, or even colour that set apart
one business's goods or services from those of its competitors.
SOLUTIONS RATED A+
✔✔Trade payable - ✔✔Money the business owes from supplies purchased but not yet
paid for.
✔✔Fixed assts - ✔✔Items of value
owned by a business that are
likely to stay in the business
for more than one year. Also
known as non-current assets.
✔✔Asset - ✔✔Any item of value owned by an individual or firm.
✔✔Commission - ✔✔A fee paid to a salesperson
in exchange for services in
facilitating or completing a
sales transaction.
✔✔Capital items - ✔✔Assets bought from capital expenditure.
✔✔Statement of financial situation - ✔✔A financial document that shows the net worth
of a business by balancing its assets against its liabilities. It is often called a balance
sheet.
✔✔Depreciation (Description) - ✔✔An accounting technique used to spread the cost of
an asset over its useful life.
✔✔Internal sources of finance - ✔✔Money available to fund expenditure within the
business
✔✔Owner's Capital - ✔✔This is money invested in the business from the owner's
personal savings.
✔✔Loans - ✔✔Money borrowed from a financial institution normally for a set period of
time and for a specific purpose.
✔✔Crowd-funding - ✔✔This involves attracting investment from a large number of
speculative investors many whom may invest relatively small amounts.
✔✔Mortgages - ✔✔These are long-term loans, normally around 25 years, that are
secured against a specific asset, for example a building.
✔✔Retained profit - ✔✔Profit kept in the business to fund future expenditure
, ✔✔Net Current Assets - ✔✔Current assets minus current liabilities shows the money
available in the business to fund day-to-day expenditure
✔✔Sale of Assets - ✔✔Selling an item of worth owned by a business in order to achieve
an immediate cash injection
✔✔Capital income - ✔✔The money invested by the owners or other investors that is
used to set up the business or buy additional equipment
✔✔Shares - ✔✔A company is when a business is registered with Companies house
and issues ______ to its ______holders
✔✔Owner's capital - ✔✔Money invested in a business from the owner's personal
savings
✔✔Debentures - ✔✔Medium- to long-term sources of capital income
✔✔Revenue income - ✔✔The money that comes into the business from performing
day-to-day function
✔✔Sales - ✔✔The money coming in from the sales of goods or services
✔✔Rent received - ✔✔A business that owns property and charges others for use of all
or part of that property will receive rent as their main source of income.
✔✔Commission Received - ✔✔A business may sell products or services as an agent of
another business.
✔✔Interest Received - ✔✔Money earned on savings or lending.
✔✔Discount Received - ✔✔When a business is given a percentage off a sale, normally
in return for quick payment or a bulk order.
✔✔Goodwill - ✔✔When you buy an existing business, its name and reputation will
already be known, and it may already have an established customer base or set of
clients.
✔✔Patents - ✔✔The legal protection of an invention, such as a unique feature of a
product or a new process.
✔✔Trademarks - ✔✔A symbol, logo, brand name, words, or even colour that set apart
one business's goods or services from those of its competitors.
