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This test is run by .
Note that your final mark will not be saved in the system.

2.3.1 Profit Categorise

Target Level

Running Total

Attempt

1 of 1

Click on an item, then click on a category to place it. Or, drag and drop the item into the correct category. Organise all items before clicking 'Check'.

Identify which phrases relate to cash and which relate to profit

CASH

PROFIT

How much the business needs to operate will be recorded in a forecast

To improve this a business needs to increase their sales revenue

There are three types of this; Gross, Operating and Net

The formula for this is Total Revenue (TR) - Total Cost (TC)

To improve this a business needs to reduce its costs

If owners introduce this via savings or a loan this will not affect the profit figure

This will be shown on a Statement of Comprehensive Income (SCI) if a business is an Ltd or a Plc

If a business runs out of this it may not be able to pay suppliers

If a business runs out of this it may not be able to pay its employees

A business can trade for many years without this

This is your 1^st attempt! You get 1 marks for each one you get right first time. Good luck!

Pass Mark

70%