1.

In a company’s finances, sales of products or services, interest received on investments and rent
on property are registered as items of ... .
a. income

b. revenue

c. both a and b

2. The Profit and Loss account is another name for the Statement of Financial Position.
a. True
b. False

3. The Balance Sheet is also known as the Statement of Financial Position.

a. True
b. False

4. The Income Statement is also called Statement of Financial Position.

a. True
b. False

5. The Profit and Loss Account ... .

a. shows the financial developments over a period of time (e.g. a quarter, a year)
b. is a picture of what the company owns and what it owes at any moment
c. neither a nor b
6. Turnover is … .
a. the gross profit minus the expenses and taxes
b. the value of sales made
c. money owed to the bank
7. Overdraft is … .
a. turnover minus the cost of sales
b. money owed to the bank
c. the gross profit minus the expenses and taxes
8. Debtors are companies which owe money
a. True
b. False
9. On a company’s balance sheet, an overdraft, a long-term loan and the original cost of
equipment are registered under ... .
 a. assets
b. liabilities
c. neither a nor b

10. Cash, credit card and debit card are … .

a. assets
b. liabilities
c. methods of payment

11. I pay my canteen bills at work… .

a. fortnightly
b. every two weeks
c. both a and b

12. We’ve already paid 20 % of this; when do we have to pay the … ?

a. balance
b. rest
c. both a and b

13. The terms “expenditure” and “outflow” are synonyms.

a. True
b. False

14. Cash outflow is money leaving the business (payments to suppliers, payments for wages)
a. True
b. False

15. A cash-cow is a venture that generates a steady return of profits that far exceed the outlay of
cash required to acquire or start it.
a. True
b. False

16. I forgot to ring about that. I … do it on Monday.

a. have
b. has to
c. must

17. In the sentence “We need to know if you’ll really do that”, “need to” is … .
a. Stronger than must
 b. As strong as must
c. Weaker than must

18. “Must” is more polite than “should” and this is why it is more frequently used in business.
a. True
b. False

19. I … be too long, Bob, because I’ve got to go at five o’clock.

a. mustn’t
b. shouldn’t
c. both a and b are possible
20. The verbs ‘to go up”, “to rise” and “to soar” describe ... trend.
a. a stable
b. an ascending
c. a descending