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. AExpenses
  2. BDrawings
  3. CDividends
  4. DLiabilities
2.Easy

The gross profit margin is calculated as:

  1. ARevenue ÷ cost of sales × 100
  2. BGross profit ÷ revenue × 100
  3. CNet profit ÷ revenue × 100
  4. DGross profit ÷ total assets × 100
3.Easy

A customer pays in advance for services the company will provide next year. At year end the money is shown as:

  1. AA non-current asset
  2. BRevenue of this year (cash received)
  3. CAn expense of this year
  4. DA liability (deferred revenue)
4.Medium

A company finds that a machine will last 8 years instead of the 5 originally estimated. Under IAS 8, how is this change applied?

  1. ABy changing the original cost of the machine
  2. BRetrospectively, by restating all prior years
  3. CProspectively, by spreading the remaining carrying amount over the new remaining life
  4. DBy recognising a large gain in the current year
5.Medium

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

  1. ABoth are always capitalised as intangible assets
  2. BResearch is capitalised; development is expensed
  3. CBoth are always expensed immediately
  4. DResearch is expensed; development is capitalised only when strict criteria are met
6.Medium

Net working capital is:

  1. ATotal assets minus total liabilities
  2. BRevenue minus operating expenses
  3. CNon-current assets minus long-term loans
  4. DCurrent assets minus current liabilities
7.Hard

Under the IAS 16 revaluation model, a building is revalued upwards for the first time. Where does the gain go?

  1. ATo other comprehensive income and a revaluation surplus in equity
  2. BTo a provision on the balance sheet
  3. CTo revenue in the income statement
  4. DTo retained earnings as a realised profit
8.Hard

Under IFRS 16, which lease may a lessee choose to expense on a straight-line basis instead of recognising a right-of-use asset?

  1. AAny lease of land and buildings
  2. BA lease with a term of 12 months or less
  3. CAny lease with monthly payments
  4. DA ten-year lease of a large production machine

Answer key

  1. 1. B · Drawings
  2. 2. B · Gross profit ÷ revenue × 100
  3. 3. D · A liability (deferred revenue)
  4. 4. C · Prospectively, by spreading the remaining carrying amount over the new remaining life
  5. 5. D · Research is expensed; development is capitalised only when strict criteria are met
  6. 6. D · Current assets minus current liabilities
  7. 7. A · To other comprehensive income and a revaluation surplus in equity
  8. 8. B · A lease with a term of 12 months or less

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