IB Diploma Programme (DP) - SL & HL · Business management

3.1 Introduction to finance: Practice Questions

5 multiple-choice questions marked as you go, and 1 written questions with worked solutions. All on 3.1 Introduction to finance.

6 questions7 marksFree, no account

Question 1

1 mark

Which of the following would be categorized as capital expenditure for a software development firm?

Question 2

1 mark

When a business expands its production facility, the finance department must collaborate closely with the operations department. Which of the following best describes the primary role of the finance department in this specific cross-functional task?

Question 3

1 mark

If a firm consistently classifies its capital expenditure as revenue expenditure, what would be the long-term effect on its financial statements?

Question 4

1 mark

Which of the following is an example of revenue expenditure for a manufacturing business?

Question 5

1 mark

Which of the following scenarios best illustrates the immediate impact of high revenue expenditure on a firm's financial position?

Question 6

2 marks

Explain the difference between capital expenditure and revenue expenditure in terms of their impact on a firm's non-current assets.

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