Financial accounting worksheet with answers

A sunk cost is:

1. AA cost already incurred that cannot be recovered
2. BA cost that changes in total with the level of output
3. CA cost saved by a decision
4. DA cost that will be paid next year

A budget is:

1. AA record of last year's transactions
2. BA financial plan for a future period
3. CA list of the company's shareholders
4. DA report written by the external auditor

Money or goods taken out of a sole trader's business for personal use are called:

1. ALiabilities
2. BDrawings
3. CDividends
4. DExpenses

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€1,600
4. D€1,500

Under IAS 16, which cost should be included in the cost of a new machine?

1. AStaff training costs after it starts operating
2. BGeneral office overheads for the year
3. CRepairs carried out two years later
4. DInstallation costs needed to get it working

Revenue is €200,000 and cost of sales is €140,000. What is the gross profit margin?

1. A60%
2. B70%
3. C30%
4. D43%

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

1. AA right-of-use asset and a lease liability
2. BAn operating expense only, spread evenly over the lease term
3. CEquity and a provision
4. DRevenue and inventory

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

1. A2%
2. B20%
3. C5%
4. D50%