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 is a liability?

  1. AInventory
  2. BShare capital paid in by owners
  3. CA loan from a bank
  4. DCash in hand
2.Easy

Which of these is capital expenditure?

  1. APaying for the van's fuel
  2. BPaying staff wages
  3. CPaying the monthly electricity bill
  4. DBuying a new delivery van
3.Easy

Which of these increases a sole trader's capital (equity)?

  1. ARepaying a bank loan
  2. BDrawings by the owner
  3. CA profit for the year
  4. DBuying inventory for cash
4.Medium

On 1 October a company pays €12,000 rent for the next 12 months. Its year ends on 31 December. What is the rent expense for this year?

  1. A€9,000
  2. B€3,000
  3. C€1,000
  4. D€12,000
5.Medium

Which error will NOT be revealed by a trial balance?

  1. AA balance copied to the wrong column
  2. BA sale left out of the books entirely
  3. CA debit posted without a matching credit
  4. DA wrongly added ledger column
6.Medium

The prudence (conservatism) concept suggests that accountants should:

  1. AAvoid overstating assets and income under uncertainty
  2. BValue assets at their selling price
  3. CIgnore possible losses
  4. DAlways record the highest possible profit to attract investors
7.Hard

The standard is 2 labour hours per unit at €20 an hour. 500 units are made in 1,100 hours. What is the labour efficiency variance?

  1. A€22,000 adverse
  2. B€2,000 adverse
  3. C€1,000 adverse
  4. D€2,000 favourable
8.Hard

Operating profit is €200,000 and capital employed (equity plus non-current liabilities) is €1,000,000. What is ROCE?

  1. A5%
  2. B50%
  3. C2%
  4. D20%

Answer key

  1. 1. C · A loan from a bank
  2. 2. D · Buying a new delivery van
  3. 3. C · A profit for the year
  4. 4. B · €3,000
  5. 5. B · A sale left out of the books entirely
  6. 6. A · Avoid overstating assets and income under uncertainty
  7. 7. B · €2,000 adverse
  8. 8. D · 20%

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