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Andrea Erasmus' 2-Minute Taste-Test On Financial Reporting

Before you get stuck into the recipe, test your skills in this supa quick 10-step assessment below. Then, try again at the end to see your improvement. 

Click below to begin the assessment.

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Question 1 of 10

Financial reporting means documenting business transactions so that you can decide:

A

Whether to grow the business or save your money for the years to come.

B

When to upgrade your car.

C

If you really want to be an entrepreneur.

Question 2 of 10

A set of financial reports consists of:

A

A balance sheet, a 3-year forecast and a tax return.

B

Bank statements, an income statement and cash flow statements.

C

An income statement, a balance sheet and the business’ cash flow position.

Question 3 of 10

To do financial forecasting you need:

A

A crystal ball.

B

Nothing - forecasting is not worth the effort because you never know what will happen.

C

Historical business data.

Question 4 of 10

Your most important task as an entrepreneur is to:

A

Ensure you catch Heavy Chef’s eye.

B

Make sure your financial records are up to date.

C

Learn how to use Xero.

Question 5 of 10

When you don’t separate your personal and business accounts:

A

You create conflict between business and personal expenses.

B

You might end up not having enough money for groceries.

C

You simplify your relationship with SARS.

Question 6 of 10

You must keep a record of slips and invoices to substantiate:

A

The hours you spend at work.

B

Your VAT claims.

C

That you actually do have a business.

Question 7 of 10

Profit on a sale does not automatically equal cash in the bank because:

A

You have to pay VAT and income tax on it.

B

You have to buy stock with it.

C

When customers take too long to pay, you could run out of cash to fund those sales.

Question 8 of 10

The formula to do a break-even analysis is:

A

Fixed costs divided by contribution margin.

B

Gross profit less variable expenses.

C

Inventory plus current liabilities.

Question 9 of 10

Your working capital cycle is influenced by:

A

Number of billable hours per month.

B

How fast your debtors pay so that you have cash on hand.

C

The productivity of your employees.

Question 10 of 10

You determine the financial health of your business by looking at:

A

Its cash flow position to see how much money is being spent.

B

Its balance sheet to see if the current assets are enough to pay off the current liabilities.

C

Both of these.

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