Worksheet: Business Finance and Arithmetic

Multiple Choice Questions (MCQs)

Q1: What is considered the equivalent of blood for an enterprise to survive?

a) Human resources
b) Machinery
c) Monetary resources or cash
d) Technology

Q2: The book in which all monetary transactions are first recorded is known as:

a) Ledger
b) Trial Balance
c) Cash book
d) Balance Sheet

Q3: Which of the following represents an inflow of cash?

a) Payment of salaries
b) Purchase of machinery
c) Sale of scrap
d) Payment of rent

Q4: Gross Profit is calculated as:

a) Total Revenue - Total Expenses
b) Unit Price - Unit Cost
c) Fixed Cost - Variable Cost
d) Revenue - Tax

Q5: Which tax cannot be shifted from the taxpayer to another person?

a) Indirect tax
b) Sales tax
c) Direct tax
d) Value Added Tax

Fill in the Blanks

Q1: The cash that gets into the business is known as ______.

Q2: Selling goods and collecting payment at a later date is called selling on ______.

Q3: Unit cost mainly refers to the ______ cost.

Q4: The statement that shows profitability over a period of time is called the ______ statement.

Q5: At the break-even point, the business makes neither profit nor ______.

True or False

Q1: Profit forms part of the balance recorded in the cash book.

Q2: The unit of sale for the construction business is usually square feet or yards.

Q3: Depreciation involves actual cash outflow.

Q4: The break-even point indicates a situation of no profit and no loss.

Q5: Indirect taxes are ultimately borne by the end user.

Short Answer Questions

Q1: What is meant by inflow of cash?

Q2: Define unit of sale.

Q3: What is a start-up cost?

Q4: State the formula for profit.

Q5: What is a direct tax?

Long Answer Questions

Q1: Explain the role and significance of the cash register in a business.

Q2: Distinguish between inflow and outflow of cash.

Q3: Explain the concept and importance of the break-even point.

Q4: Explain the difference between expenditure, expense and cost.

Q5: Why does the government collect taxes from people?