Q.1
When a company spends $total on production. If they earn $in total revenue at a price of $per unit, then what is the company's average total cost of production for each unit?
  • $20
  • $50
  • $30
  • $10
Q.2
A firm producesunits at a total cost of $2,What is their average total cost of production?
  • $4 per unit
  • $5 per unit
  • $3 per unit
  • $2 per unit
Q.3
If a company sellsunits of their product at an average price of $per unit, what is their total revenue?
  • $6,000
  • $4,500
  • $4,000
  • $7,500
Q.4
The price of a product is $and the average total cost is $If the company produces and sellsunits of the product, then what is their economic profit?
  • $2,500
  • $175
  • $75
  • $750
Q.5
When a company increases production from 4 to 7 units, total revenue increases from $to $What is the marginal revenue (MR) of the last unit sold?
  • $30
  • $40
  • $51.50
  • $60.25
Q.6
If a company earns $in total revenue when they produceunits, and they earn $in economic profit, then what is the company's average total cost per unit of production?
  • $4
  • $5
  • $10
  • $40
Q.7
The total cost for a company is $If the total variable cost is $then what is the total fixed cost for the company?
  • $20
  • $30
  • $40
  • $10
Q.8
Apple'srevenue was $214.billion, and their net income (profit) was $45.billion. What was Apples total cost in 2016?
  • $168.54 billion
  • $157.24 billion
  • $172.53 billion
  • $161.51 billion
Q.9
When a company produces one extra unit, their total cost increases from $7,to $8,What is the marginal cost of producing that extra unit?
  • $500
  • $8,000
  • $7,500
  • $250
Q.10
A company hires 3 workers for a day for $each, spends $on materials for the day, and pays a fixed daily rent of $What is the company's total cost for this day of operations?
  • $1,250
  • $750
  • $1,000
  • $1,150
Q.11
Which of these is NOT a goal of the cash flow forecast?
  • Start up a business
  • Run an existing business
  • Be 100% accurate
  • Keep the bank informed
Q.12
How is it called when a Business runs out of cash?
  • Inflow
  • Insolvency
  • Insufficiency
  • Inaccuracy
Q.13
Which of these ISN’T a way of holding working capital?
  • Cash
  • A company car
  • Debtors
  • Inventories
Q.14
Which of the following ISN'T a cash flow problem?
  • Higher cash inflow than cash outflow
  • Sudden fall in sales
  • Unforeseen expenses
  • Debtors payback period is too long
Q.15
What means "cash flow as a liquid asset"?
  • That it assess a company's profitability.
  • That is immediately available for spending on goods and services.
  • That it includes all purchases of capital assets and investments in other business ventures.
  • That it represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
Q.16
Which one of these is NOT a type of activity presented on the statement of cash flows?
  • Producing.
  • Investing.
  • Operating.
  • Financing.
Q.17
Why is the cash flow forecast important?
  • To know if the business is holding too much cash that could be used in a more profitable way.
  • To know how much money ask the bank for.
  • To help the manger to know the available cash to pay/purchase.
  • All the above.
Q.18
Which one is the working capital formula?
  • Working capital = cash received - cash spent.
  • Working capital = current assets - current liabilities.
  • Working capital = operating cash flow - capital expenditures.
Q.19
You can have negative Net Worth.
  • True
  • False
Q.20
What is an Asset?
  • debts you owe
  • anything you borrow
  • anything you own that has value
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