PCBA - Finance and Costing - Quiz 1 - Holistic College Dublin

1. Question

What is variable costs?

Cost relating to professional membership
Cost relating to how busy you are
Costs relating to professional indemnity insurance
Cost relating to an agreed rate overdraft facility

2. Question

What is net profit?

The amount remaining after the gross profit has been deducted from the total revenue
The amount remaining after the total costs of the business have been deducted from the total revenue of the business for a particular period of time
The total revenue of the business less fixed costs
The total sales of the business less the value of stock left in the business at the year end

3. Question

When ordering products it is important to order those that:

Sell slowly and are the therapist’s preference
Sell slowly in order to promote them
Sell quickly in order that they do not sit on the shelves for too long
Sell slowly and the packaging looks good on the shelves

4. Question

What is the purpose of a petty cash book?

To record all major cash transactions
To record all debts
To record all minor cash transactions
To record all salary transactions

5. Question

Which of the following would NOT be taken into consideration when costing a treatment?

Overheads
Products used
Time taken for breaks
Consumables

6. Question

What is best practice when taking payment from a client undertaking a course of treatment?

Take full payment at the end of the course
Take payment each time the client comes for treatment
Take payment for the whole course in advance
Take payment only if the course of treatment has been successful

7. Question

What are fixed costs?

Costs affected by the levels of business carried out
Costs that are not affected by the levels of business carried out
Costs directly proportional to the levels of business
Costs that are dependent upon the amount of variable salary paid to each employee

8. Question

What is gross profit?

The final profit made after all deductions have been made
Money that can be offset against the next invoice
The profit made before all deductions have been taken off
A method of checking credit worthiness

9. Question

What is cash flow?

The number of credit card transactions that have been made
The flow of products paid for in cash
The flow of money in and out of a business
The flow of expenditure only

10. Question

What is the purpose of a balance sheet?

To request payment for goods before they are dispatched
To record when goods have been packed and are ready for delivery
To detail all the assets and liabilities of a business
To document all business transactions for a period of one year

11. Question

What is net profit?

The amount remaining after the gross profit has been deducted from the total revenue
The amount remaining after the total costs of the business have been deducted from the total revenue of the business for a particular period of time
The total revenue of the business less fixed costs
The total sales of the business less the value of stock left in the business at the year end

12. Question

What is a balance sheet?

A statement of the assets and liabilities of the business on a particular day
A statement drawn up on a particular date that shows the total assets and liabilities of the business and how they have been financed
A statement of the income made, the expenditure of a business and the difference between the two
A statement that records transactions relating to purchases, expenses and any increase in the assets of the company

13. Question

Which of the following should be taken into account when costing a treatment?

The number of times a treatment has been booked
Only the number of therapists available per week
Materials, wages, overheads, profit margin
Only the amount of products used per day

14. Question

Which of the following is a variable business cost?

Postage
Rent
Fixed period loan repayments
Road tax

15. Question

Which of the following documents gives details and prices of goods or services received?

A delivery note
A statement
An invoice
A purchasing order

16. Question

Which of the following is an example of a fixed cost?

Rent
Communications
Supplies
Power

17. Question

What is the term used to describe; the statements of the income made, the expenditure of a business and the difference between the two?

Cash flow forecast
Profit and loss
Balance sheet
Business statement

18. Question

What does the term net profit mean?

The sum received before income tax and national insurance have been paid
The amount used to calculate the amount of income tax that is payable
The amount used to calculate the amount of national insurance that is payable
The sum received after income tax and national insurance have been paid

PCBA – Finance and Costing – Quiz 1