Financial accounting worksheet with answers

Free printable Financial accounting worksheet: 8 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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Name: ____________________   Date: ____________

1.Easy

What is the main purpose of a trial balance?

  1. ATo list all customers who owe money
  2. BTo prove that no errors of any kind exist in the ledger accounts
  3. CTo check that total debits equal total credits in the ledger
  4. DTo show the company's profit for the year
2.Easy

How is cost of goods sold calculated for a trading business?

  1. AOpening inventory + purchases − closing inventory
  2. BRevenue − purchases − closing inventory
  3. COpening inventory − purchases + closing inventory
  4. DPurchases + closing inventory
3.Easy

The gross profit margin is calculated as:

  1. AGross profit ÷ total assets × 100
  2. BNet profit ÷ revenue × 100
  3. CGross profit ÷ revenue × 100
  4. DRevenue ÷ cost of sales × 100
4.Medium

On 1 October a company pays €12,000 rent for the next 12 months. Its year ends on 31 December. What is the rent expense for this year?

  1. A€3,000
  2. B€9,000
  3. C€12,000
  4. D€1,000
5.Medium

A machine with a carrying amount of €3,000 is sold for €4,000. What is recorded in the income statement?

  1. ARevenue of €4,000
  2. BA loss on disposal of €1,000
  3. CA gain on disposal of €1,000
  4. DA gain on disposal of €4,000
6.Medium

When preparing a bank reconciliation, which item explains why the bank statement balance is higher than the cash book balance?

  1. AA direct debit not yet entered in the cash book
  2. BCash deposited but not yet credited on the bank statement
  3. CBank charges not yet entered in the cash book
  4. DCheques issued but not yet presented to the bank
7.Hard

The standard price of material is €5 per kg. The company buys 1,000 kg for €5,400. What is the material price variance?

  1. A€0.40 adverse
  2. B€5,400 adverse
  3. C€400 adverse
  4. D€400 favourable
8.Hard

Operating profit is €200,000 and capital employed (equity plus non-current liabilities) is €1,000,000. What is ROCE?

  1. A5%
  2. B50%
  3. C2%
  4. D20%

Answer key

  1. 1. C · To check that total debits equal total credits in the ledger
  2. 2. A · Opening inventory + purchases − closing inventory
  3. 3. C · Gross profit ÷ revenue × 100
  4. 4. A · €3,000
  5. 5. C · A gain on disposal of €1,000
  6. 6. D · Cheques issued but not yet presented to the bank
  7. 7. C · €400 adverse
  8. 8. D · 20%

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