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 current asset?

  1. ALand
  2. BMachinery
  3. CInventory
  4. DA long-term bank loan
2.Easy

Accounts receivable are:

  1. AAmounts customers owe the company for sales on credit
  2. BAmounts the company owes its suppliers
  3. CShares owned by investors
  4. DCash held in the bank
3.Easy

Which of these is a non-current liability?

  1. AA bank loan repayable in five years
  2. BA bank overdraft
  3. CTax due within three months
  4. DTrade payables due to suppliers next month
4.Medium

Budgeted sales are 1,500 units and the break-even point is 1,000 units. What is the margin of safety?

  1. A500 units
  2. B1,500 units
  3. C2,500 units
  4. D1,000 units
5.Medium

Which ratio measures a company's ability to pay its short-term obligations?

  1. AEarnings per share
  2. BReturn on equity
  3. CThe current ratio
  4. DThe gross margin
6.Medium

Profit for ordinary shareholders is €500,000 and there are 1,000,000 ordinary shares. What are basic earnings per share?

  1. A€5.00
  2. B€2.00
  3. C€0.50
  4. D€0.05
7.Hard

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

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

Machine hours are scarce. Product X earns €20 contribution and needs 4 hours; product Y earns €15 and needs 2 hours. Which should be made first?

  1. AX, because it earns more contribution per unit
  2. BY, because it earns €7.50 per hour versus €5 for X
  3. CEither, because the total contribution is the same
  4. DX, because it uses more machine time

Answer key

  1. 1. C · Inventory
  2. 2. A · Amounts customers owe the company for sales on credit
  3. 3. A · A bank loan repayable in five years
  4. 4. A · 500 units
  5. 5. C · The current ratio
  6. 6. C · €0.50
  7. 7. A · Added back to net profit because it is a non-cash expense
  8. 8. B · Y, because it earns €7.50 per hour versus €5 for X

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