How's your Business Finance IQ?

Ready to test your financial know-how? Our 10-question quiz is a quick self-assessment designed specifically for New Zealand's small business owners.

Covering essential, everyday concepts from GST and PAYE to the difference between profit and break-even, take a few moments to check your knowledge. It's a brilliant way to build confidence, identify any blind spots in your financial literacy, and ensure you have the solid foundation needed to make smart, informed decisions for your business's future success.

Good luck!

Take Again

In New Zealand, what is the standard rate for Goods and Services Tax (GST)? *

10%

12.5%

What is the key difference between 'break-even' and 'profit'? *

Break-even is when revenue equals expenses; profit is when revenue exceeds expenses.

Break-even is a measure of cash flow, while profit is a measure of assets.

There is no difference - they are the same concept.

Profit is calculated daily, while break-even is calculated annually.

Which of the following is an example of a 'liability' on a business's balance sheet? *

Cash in the bank.

A loan from the bank.

A vehicle owned by the business.

Money owed by customers (accounts receivable).

For a small business in New Zealand, what does PAYE stand for? *

Pay All Your Expenses

Profit And Yearly Earnings

Pay As You Earn

Payment And Expense Yield

What is the primary purpose of a Profit and Loss (P&L) statement? *

To show the business's assets and liabilities at a specific point in time.

To report the business's financial performance over a specific period.

To track the movement of cash in and out of the business.

To calculate the amount of GST owed to the IRD.

Under what circumstances must a business register for GST in New Zealand? *

As soon as it makes its first sale.

If its annual turnover is expected to be more than $30,000.

If its annual turnover is, or is expected to be, more than $60,000.

Only if it's registered as a limited liability company.

Which of these is considered a capital expense? (CAPEX) *

Monthly electricity bill.

Purchasing a new vehicle for the business.

Employee wages.

Office stationery supplies.

What is 'depreciation' in an accounting context? *

The increase in value of an asset over time.

The process of paying off a business loan.

The allocation of an asset's cost over its useful life.

A sudden loss of cash from the business.

What does 'working capital' represent? *

The total value of all company assets.

The money used to start the business.

The cash available for purchasing new equipment.

The difference between current assets and current liabilities.

What is 'provisional tax'? *

An optional extra tax payment to support the government.

The tax paid on property sales.

A system for paying income tax in instalments throughout the year.

The final tax amount calculated at the end of the financial year.