BMAL 590 Business Finance (Latest 2024/ 2025 Update)
Qs & As|| 100% Correct| Grade A (Verified Answers)
Purposes of Accounting - ANSWERRecording of business transactions, then preparing
a set of accounts to judge business performance.
Purposes of Accounting - ANSWERRecording transactions.
Management of the business.
Compliance.
Measure performance.
Control.
Recording transactions - ANSWERInflows and outflows
Management of the business - ANSWERHelps: planning, monitor spending,
performance, control and set budgets
Compliance - ANSWERTo fulfil legal and tax requirements
Measure performance - ANSWERGross/net profit.
Sales revenue.
Expenditure/costs.
Efficiency.
Control - ANSWERTracks: trade receivables & trade payables.
Trade receivables - ANSWERMoney owed to the business.
Trade payables - ANSWERMoney owed by the business
Income - ANSWERMoney received by the business
Capital income - ANSWERMoney used to set up a business
Examples of capital income - ANSWERLoans.
Mortgage.
Share capital.
Owners capital.
Debentures.
Revenue income - ANSWERMoney coming into the business from selling its goods or
services.
Revenue income examples - ANSWERCash sales.
Credit sales.
Interest received.
, Commission.
Discount.
Cash sales - ANSWERPhysical cash or debit/credit card.
Credit sales - ANSWERTreads credit, hire purchase, etc...
Interest received - ANSWEREither due to lending money or interest earned on
savings.
Commission - ANSWEREarning a fee for a sale.
Discount - ANSWERBulk buying stock-discount is received at a later date via a refund
or credit.
Capital expenditure - ANSWERExpenditure is items bought by the business.
Capital expenditure - ANSWERNon-current assets AND intangible assets
Non-current assets - ANSWERItems owned by the business for more than one year.
Non-current assets - ANSWERProperty.
Land.
Premises.
Machinery.
Equipment.
Vehicles.
Fixtures & fittings.
Intangible assets - ANSWERNon physical items.
Intangible assets - ANSWERTrademarks.
Patents.
The brand name/image.
Reputation.
Goodwill.
Depreciation - ANSWERAssets falling in value over time.
Depreciation - ANSWERNeeds to be shown in the accounts as items will need
replacing at some point, so falling value needs to be shown in the accounts.
Straight line depreciation - ANSWERLooses the same amount each year.
Reducing balance depreciation - ANSWERThe loss is greater in the early years.
Revenue expenditure - ANSWERThe day to day costs involved in running a business.
Qs & As|| 100% Correct| Grade A (Verified Answers)
Purposes of Accounting - ANSWERRecording of business transactions, then preparing
a set of accounts to judge business performance.
Purposes of Accounting - ANSWERRecording transactions.
Management of the business.
Compliance.
Measure performance.
Control.
Recording transactions - ANSWERInflows and outflows
Management of the business - ANSWERHelps: planning, monitor spending,
performance, control and set budgets
Compliance - ANSWERTo fulfil legal and tax requirements
Measure performance - ANSWERGross/net profit.
Sales revenue.
Expenditure/costs.
Efficiency.
Control - ANSWERTracks: trade receivables & trade payables.
Trade receivables - ANSWERMoney owed to the business.
Trade payables - ANSWERMoney owed by the business
Income - ANSWERMoney received by the business
Capital income - ANSWERMoney used to set up a business
Examples of capital income - ANSWERLoans.
Mortgage.
Share capital.
Owners capital.
Debentures.
Revenue income - ANSWERMoney coming into the business from selling its goods or
services.
Revenue income examples - ANSWERCash sales.
Credit sales.
Interest received.
, Commission.
Discount.
Cash sales - ANSWERPhysical cash or debit/credit card.
Credit sales - ANSWERTreads credit, hire purchase, etc...
Interest received - ANSWEREither due to lending money or interest earned on
savings.
Commission - ANSWEREarning a fee for a sale.
Discount - ANSWERBulk buying stock-discount is received at a later date via a refund
or credit.
Capital expenditure - ANSWERExpenditure is items bought by the business.
Capital expenditure - ANSWERNon-current assets AND intangible assets
Non-current assets - ANSWERItems owned by the business for more than one year.
Non-current assets - ANSWERProperty.
Land.
Premises.
Machinery.
Equipment.
Vehicles.
Fixtures & fittings.
Intangible assets - ANSWERNon physical items.
Intangible assets - ANSWERTrademarks.
Patents.
The brand name/image.
Reputation.
Goodwill.
Depreciation - ANSWERAssets falling in value over time.
Depreciation - ANSWERNeeds to be shown in the accounts as items will need
replacing at some point, so falling value needs to be shown in the accounts.
Straight line depreciation - ANSWERLooses the same amount each year.
Reducing balance depreciation - ANSWERThe loss is greater in the early years.
Revenue expenditure - ANSWERThe day to day costs involved in running a business.
