Financial accounting worksheet with answers

How does management accounting mainly differ from financial accounting?

1. AIt is regulated by IFRS and must be published
2. BIt provides information for internal decision-making rather than external users
3. CIt only reports on past events
4. DIt is prepared only for tax authorities

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

1. ARepaying a bank loan
2. BBuying inventory for cash
3. CA profit for the year
4. DDrawings by the owner

Contribution per unit is:

1. ASelling price minus variable cost per unit
2. BSelling price minus full absorption cost per unit
3. CFixed costs divided by units sold
4. DRevenue minus fixed costs

A provision is recognised when a company has:

1. AA present obligation from a past event, a probable outflow and a reliable estimate
2. BCash set aside in a separate account
3. CA possible future loss with no obligation
4. DA profit to distribute

A firm buys 200 units at €5 and 300 units at €6, then sells 400 units. Using weighted average cost, what is closing inventory?

1. A€500
2. B€560
3. C€550
4. D€600

Operating profit is €120,000 and interest expense is €30,000. What is interest cover?

1. A3 times
2. B0.25 times
3. C90,000 times
4. D4 times

The going concern assumption means financial statements are prepared assuming the entity:

1. AHas no debts
2. BWill continue to operate for the foreseeable future
3. CWill be sold within one year
4. DWill make a profit every year

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

1. A135 days
2. B105 days
3. C15 days
4. D75 days