BTEC BUSINESS LEVEL 3 BUSINESS
FINANCE TOPIC F REVIEW QUESTIONS
WITH VERIFIED ANSWERS [ GRADED A+]
Statement of Comprehensive Income - ✔️✔️Calculates whether the firm has
made a profit or loss during the period by deducting all costs from all
revenues earned.
Revenue - ✔️✔️Money earned from selling goods and services.
Cost of Sales - ✔️✔️The costs directly associated with producing the goods /
services.
Gross Profit - ✔️✔️Shows whether a firm is profitable from "trading" by
deducting the cost of sales from the revenues earned.
©morren2025/2026.Year published 2026.
, Overheads / Expenses - ✔️✔️Are all indirect costs. Costs that the business
must spend but, are not directly associated to the production or delivery of
goods and services.
Other Income - ✔️✔️Income the business receives from sources other than
revenue e.g. interest paid.
Opening Inventories - ✔️✔️The value of inventory (stock) at the beginning of
the period (usually financial year).
Closing Inventories - ✔️✔️The value of inventory (stock) at the end of the
period (usually financial year).
Depreciation - ✔️✔️The spreading of the cost of an asset over it's useful life.
Historic Cost - ✔️✔️The cost of the asset when it was first purchased.
©morren2025/2026.Year published 2026.
FINANCE TOPIC F REVIEW QUESTIONS
WITH VERIFIED ANSWERS [ GRADED A+]
Statement of Comprehensive Income - ✔️✔️Calculates whether the firm has
made a profit or loss during the period by deducting all costs from all
revenues earned.
Revenue - ✔️✔️Money earned from selling goods and services.
Cost of Sales - ✔️✔️The costs directly associated with producing the goods /
services.
Gross Profit - ✔️✔️Shows whether a firm is profitable from "trading" by
deducting the cost of sales from the revenues earned.
©morren2025/2026.Year published 2026.
, Overheads / Expenses - ✔️✔️Are all indirect costs. Costs that the business
must spend but, are not directly associated to the production or delivery of
goods and services.
Other Income - ✔️✔️Income the business receives from sources other than
revenue e.g. interest paid.
Opening Inventories - ✔️✔️The value of inventory (stock) at the beginning of
the period (usually financial year).
Closing Inventories - ✔️✔️The value of inventory (stock) at the end of the
period (usually financial year).
Depreciation - ✔️✔️The spreading of the cost of an asset over it's useful life.
Historic Cost - ✔️✔️The cost of the asset when it was first purchased.
©morren2025/2026.Year published 2026.
