Business terminology test

What is retained profit?

• The profit used for inventory.

• The profit left, or reinvested back into the business, after all payments have been deducted.

• The capital returned to investors of a business in a certain time period.

• The revenue minus wages.

What is net profit?

• The profit made by a business after all costs have been deducted from revenue.

• The profit made by a business after fixed costs have been deducted from revenue.

• The profit made by a business after non-fixed costs have been deducted from revenue.

Select the correct definition for 'cost of sales'

• The cost of producing or buying in the goods actually sold by the business during a time period.

• The cost of producing or buying in the goods not sold by the business during a time period.

• The cost of the entire inventory

• The total price for all non-current sales

Define 'revenue'

• Any money that a business makes from selling its goods and services, with calculating cost.

• Any money that a business makes from selling its goods and services, without calculating cost.

What is another term or word for sales?

• Production

• Output

• Fund

• Capital

Assets are those items of value which are owned by the business.

• True

• False

Non-current assets are items owned by the business for less than one year.

• True

• False

Answer explanation

Non-current assets are items owned by the business for MORE than one year.

Current-assets are items owned by the business and used within one year.

Liabilities are debts owed by the business.

• True

• False

Select the correct example of a 'current asset'.

• Inventories

• Land and buildings

• Long-term bank loan

• Bank overdraft

Choose the correct missing word

________ is the materials held by a business in order to produce the product being sold to the customer. It is sometimes referred to as stock.

• Equity

• Inventory

• Bank overdraft

• Capital