Financial accounting worksheet with answers

Depreciation is:

1. ASpreading the cost of a non-current asset over its useful life
2. BThe interest paid on debts
3. CA fall in the market value of shares
4. DPaying off a loan in instalments

Which of these is a non-current liability?

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

Contribution per unit is:

1. AFixed costs divided by units sold
2. BRevenue minus fixed costs
3. CSelling price minus variable cost per unit
4. DSelling price minus full absorption cost per unit

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

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

A company increases its allowance for doubtful receivables. What is the effect?

1. AOnly the notes change; no figures move
2. BCash decreases immediately
3. CRevenue increases and gross receivables rise by the same amount
4. DAn expense is recognised and net receivables fall

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€1,650
3. C€1,600
4. D€1,700

An investor holds 30% of a company's shares and has significant influence but not control. How is the investment usually accounted for in group accounts?

1. ABy full consolidation as a subsidiary
2. BAs a joint operation with line-by-line sharing
3. CAt cost with no changes ever
4. DUsing the equity method as an associate

A company sells a software licence together with two years of support for one price. Under IFRS 15, how is revenue recognised?

1. ARecognise half the price in each year without splitting it by obligation
2. BAllocate the price using standalone selling prices; recognise the licence at delivery and support over two years
3. CDefer the whole price and recognise it when the two years of support end
4. DRecognise the whole price at once when the customer signs the contract