Unit 3 Business Test Paper 1 Revision Exam Latest Update 2026/2027 (1pages)

Describe the role of the citizens advice bureau - ANS-an organisation that offers advice on a wide range of issues, both financial and non-financial Explain reasons why individuals, like students, should avoid getting themselves into debt. - ANS-1. Debt is expensive as interest will be charged on money owed. 2. If debts are not paid in time it will affect an individuals credit rating. 3. May impact on an individuals ability to borrow money in the future. Explain two benefits of contactless credit debit cards. - ANS-1. Fast and easy method of payment, speeds up transactions especially on the move. 2. Secure method of payment, avoids putting in a PIN number that could be seen. 3, quicker queuing time for business, reduces congestion at check outs. (ask me how this can be applied to business and customer) Outline what is meant by non-current liabilities - ANS-1. A lability a business owes 2. It means the business will pay back the amount owed in more than one year. 3. Examples of non-current liabilities would be mortgages and long term bank loans (for greater than 12 months) Explain why certain assets need to be depreciated - ANS-1. Deprecation is an accounting concept used to spread the cost of an asset over its useful life. 2. To show how most non-current assets, over time, will lose value due to wear and tear or becoming technically obsolete. 3. It is important to show an assets realist value in the statement of financial position