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

Which of these is a non-current liability?

  1. ATax due within three months
  2. BA bank loan repayable in five years
  3. CTrade payables due to suppliers next month
  4. DA bank overdraft
2.Easy

Which of these is capital expenditure?

  1. APaying the monthly electricity bill
  2. BBuying a new delivery van
  3. CPaying for the van's fuel
  4. DPaying staff wages
3.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
4.Medium

A provision is recognised when a company has:

  1. ACash set aside in a separate account
  2. BA present obligation from a past event, a probable outflow and a reliable estimate
  3. CA possible future loss with no obligation
  4. DA profit to distribute
5.Medium

A project costs €100,000 and brings in €25,000 cash per year. What is its payback period?

  1. A5 years
  2. B25 years
  3. C4 years
  4. D2.5 years
6.Medium

Which error will NOT be revealed by a trial balance?

  1. AA balance copied to the wrong column
  2. BA debit posted without a matching credit
  3. CA sale left out of the books entirely
  4. DA wrongly added ledger column
7.Hard

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

  1. A50%
  2. B20%
  3. C2%
  4. D5%
8.Hard

A company "sells" inventory to a bank and must buy it back later at a higher price, keeping the risks and rewards. How should it be accounted for?

  1. AAs a contingent asset in the notes
  2. BAs a secured loan, not a sale
  3. CAs a gain on disposal of inventory
  4. DAs revenue on the date of transfer

Answer key

  1. 1. B · A bank loan repayable in five years
  2. 2. B · Buying a new delivery van
  3. 3. A · Opening inventory + purchases − closing inventory
  4. 4. B · A present obligation from a past event, a probable outflow and a reliable estimate
  5. 5. C · 4 years
  6. 6. C · A sale left out of the books entirely
  7. 7. B · 20%
  8. 8. B · As a secured loan, not a sale

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