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

Money or goods taken out of a sole trader's business for personal use are called:

  1. ALiabilities
  2. BDrawings
  3. CDividends
  4. DExpenses
2.Easy

Which is a liability?

  1. AShare capital paid in by owners
  2. BInventory
  3. CA loan from a bank
  4. DCash in hand
3.Easy

Which of these is a non-current liability?

  1. ATrade payables due to suppliers next month
  2. BA bank overdraft
  3. CA bank loan repayable in five years
  4. DTax due within three months
4.Medium

Current assets are €300,000, including inventory of €100,000. Current liabilities are €200,000. What is the quick (acid-test) ratio?

  1. A2.0
  2. B1.0
  3. C0.5
  4. D1.5
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

Which inventory valuation method assumes the oldest goods are sold first?

  1. ALIFO (last in, first out)
  2. BFIFO (first in, first out)
  3. CWeighted average cost
  4. DSpecific identification of each item
7.Hard

Under the IAS 16 revaluation model, a building is revalued upwards for the first time. Where does the gain go?

  1. ATo revenue in the income statement
  2. BTo a provision on the balance sheet
  3. CTo other comprehensive income and a revaluation surplus in equity
  4. DTo retained earnings as a realised profit
8.Hard

Under the matching principle, the cost of a product warranty sold with goods this year should be:

  1. AEstimated and recognised as an expense in the year of sale
  2. BRecorded as revenue
  3. CIgnored until the warranty expires
  4. DRecognised only when a customer actually makes a warranty claim

Answer key

  1. 1. B · Drawings
  2. 2. C · A loan from a bank
  3. 3. C · A bank loan repayable in five years
  4. 4. B · 1.0
  5. 5. C · A gain on disposal of €1,000
  6. 6. B · FIFO (first in, first out)
  7. 7. C · To other comprehensive income and a revaluation surplus in equity
  8. 8. A · Estimated and recognised as an expense in the year of sale

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