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

Gross profit is:

  1. ARevenue minus cost of goods sold
  2. BTotal assets minus total liabilities
  3. CCash in minus cash out
  4. DRevenue minus all expenses
2.Easy

What is the main purpose of a trial balance?

  1. ATo show the company's profit for the year
  2. BTo list all customers who owe money
  3. CTo prove that no errors of any kind exist in the ledger accounts
  4. DTo check that total debits equal total credits in the ledger
3.Easy

The gross profit margin is calculated as:

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

Retained earnings represent:

  1. ACash kept in the bank
  2. BMoney owed to shareholders
  3. CAccumulated profits that have not been paid out as dividends
  4. DThe share price
5.Medium

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

  1. A1.5
  2. B4.5
  3. C0.5
  4. D2.0
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€1,650
  2. B€1,700
  3. C€1,500
  4. D€1,600
7.Hard

A firm with spare capacity gets a one-off order at €35 per unit. Variable cost is €30 and full cost including fixed overhead is €42. Assuming no other effects, should it accept?

  1. ANo, the price is below full cost
  2. BYes, but only if the price exceeds €42
  3. CYes, each unit adds €5 contribution
  4. DNo, the order makes a €7 loss per unit
8.Hard

Inventory days are 60, receivable days 45 and payable days 30. What is the cash conversion (operating) cycle?

  1. A75 days
  2. B105 days
  3. C135 days
  4. D15 days

Answer key

  1. 1. A · Revenue minus cost of goods sold
  2. 2. D · To check that total debits equal total credits in the ledger
  3. 3. A · Gross profit ÷ revenue × 100
  4. 4. C · Accumulated profits that have not been paid out as dividends
  5. 5. D · 2.0
  6. 6. D · €1,600
  7. 7. C · Yes, each unit adds €5 contribution
  8. 8. A · 75 days

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