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

A bad debt is:

  1. AA debt owed to a supplier that is overdue
  2. BA loan with a high interest rate
  3. CA receivable that the company does not expect to collect
  4. DAny loan taken out by a company that is currently making losses
2.Easy

In double-entry bookkeeping, an increase in a liability is recorded as:

  1. AA debit
  2. BNo entry until it is paid
  3. CA debit to cash only
  4. DA credit
3.Easy

How does management accounting mainly differ from financial accounting?

  1. AIt is prepared only for tax authorities
  2. BIt provides information for internal decision-making rather than external users
  3. CIt only reports on past events
  4. DIt is regulated by IFRS and must be published
4.Medium

Operating profit is €120,000 and interest expense is €30,000. What is interest cover?

  1. A4 times
  2. B0.25 times
  3. C90,000 times
  4. D3 times
5.Medium

Retained earnings represent:

  1. AThe share price
  2. BAccumulated profits that have not been paid out as dividends
  3. CCash kept in the bank
  4. DMoney owed to shareholders
6.Medium

A shop buys 100 units at €10, then 100 units at €12, and then sells 150 units. What is cost of sales using FIFO?

  1. A€1,500
  2. B€1,600
  3. C€1,700
  4. D€1,650
7.Hard

In the indirect method of the cash flow statement, depreciation is:

  1. AShown in financing activities
  2. BIgnored completely
  3. CSubtracted from net profit
  4. DAdded back to net profit because it is a non-cash expense
8.Hard

Under IFRS 16, a lessee typically recognises a lease on the balance sheet as:

  1. AEquity and a provision
  2. BA right-of-use asset and a lease liability
  3. CRevenue and inventory
  4. DAn operating expense only, spread evenly over the lease term

Answer key

  1. 1. C · A receivable that the company does not expect to collect
  2. 2. D · A credit
  3. 3. B · It provides information for internal decision-making rather than external users
  4. 4. A · 4 times
  5. 5. B · Accumulated profits that have not been paid out as dividends
  6. 6. B · €1,600
  7. 7. D · Added back to net profit because it is a non-cash expense
  8. 8. B · A right-of-use asset and a lease liability

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