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. ADividends
  2. BExpenses
  3. CDrawings
  4. DLiabilities
2.Easy

Which financial statement shows a company's financial position at one moment in time?

  1. AThe statement of changes in equity over the year
  2. BThe income statement
  3. CThe balance sheet
  4. DThe cash flow statement
3.Easy

The gross profit margin is calculated as:

  1. AGross profit ÷ total assets × 100
  2. BRevenue ÷ cost of sales × 100
  3. CNet profit ÷ revenue × 100
  4. DGross profit ÷ revenue × 100
4.Medium

The prudence (conservatism) concept suggests that accountants should:

  1. AAvoid overstating assets and income under uncertainty
  2. BIgnore possible losses
  3. CValue assets at their selling price
  4. DAlways record the highest possible profit to attract investors
5.Medium

Under IAS 38, how are research and development costs treated?

  1. AResearch is expensed; development is capitalised only when strict criteria are met
  2. BBoth are always capitalised as intangible assets
  3. CResearch is capitalised; development is expensed
  4. DBoth are always expensed immediately
6.Medium

Current assets are €300,000 and current liabilities are €150,000. What is the current ratio?

  1. A4.5
  2. B2.0
  3. C1.5
  4. D0.5
7.Hard

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

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

A company issues shares at €5 each with a nominal value of €1. The extra €4 per share is recorded as:

  1. AShare premium
  2. BRevenue
  3. CRetained earnings
  4. DA liability

Answer key

  1. 1. C · Drawings
  2. 2. C · The balance sheet
  3. 3. D · Gross profit ÷ revenue × 100
  4. 4. A · Avoid overstating assets and income under uncertainty
  5. 5. A · Research is expensed; development is capitalised only when strict criteria are met
  6. 6. B · 2.0
  7. 7. C · A right-of-use asset and a lease liability
  8. 8. A · Share premium

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