Business 0450 · IGCSE · Statement of financial position
Statement of financial position — practice question
Josh runs an office cleaning company. His client base includes both large and small businesses. Josh employs 6 full-time cleaners, and each one receives off-the-job training. Josh thinks that the newest cleaning equipment increases added value. He remarked: ‘Customers are pleased with the service. I am always sending text (SMS) messages to workers about extra work.’ Josh has been examining his balance sheet. He is unsure whether a bank loan is the best finance option for buying new equipment. The new equipment will cost $60 000.
(a)[2]
What does ‘trade receivables’ mean?
(b)[2]
Calculate the values of X and Y shown below.
(c)[4]
Identify and explain one advantage and one disadvantage to Josh of using text (SMS) messages as a form of internal communication.
(d)[6]
Identify one advantage and one disadvantage to Josh of using off-the-job training.
(e)[6]
Do you think a bank loan is the best source of finance for Josh to use for the new equipment? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The sum owed by customers for goods bought on credit terms.” …