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

A budget is:

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

Which of these is an intangible asset?

  1. AInventory of finished goods
  2. BCash in the bank
  3. CA delivery van
  4. DA patent
3.Easy

A variable cost is a cost that:

  1. AStays the same in total within the relevant range of output
  2. BChanges in total in proportion to the level of activity
  3. CIs paid only once when a business starts
  4. DIs never included in product costs
4.Medium

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€550
  2. B€500
  3. C€600
  4. D€560
5.Medium

Current assets are €300,000, including inventory of €100,000. Current liabilities are €200,000. What is the quick (acid-test) ratio?

  1. A2.0
  2. B0.5
  3. C1.0
  4. D1.5
6.Medium

Return on equity (ROE) is calculated as:

  1. ACurrent assets / current liabilities
  2. BNet profit / shareholders' equity
  3. CTotal assets / equity
  4. DNet profit / total revenue
7.Hard

An investor holds 30% of a company's shares and has significant influence but not control. How is the investment usually accounted for in group accounts?

  1. ABy full consolidation as a subsidiary
  2. BUsing the equity method as an associate
  3. CAs a joint operation with line-by-line sharing
  4. DAt cost with no changes ever
8.Hard

Making a part costs €10 materials, €6 labour and €4 variable overhead, plus €5 of fixed overhead that continues anyway. A supplier offers it at €22. What should the firm do on cost grounds?

  1. ABuy it, because the full cost of €25 per unit is above €22
  2. BMake it, because the full cost of €25 is below €22
  3. CBuy it, because fixed costs are always relevant
  4. DMake it, because the relevant cost of €20 is below €22

Answer key

  1. 1. A · A financial plan for a future period
  2. 2. D · A patent
  3. 3. B · Changes in total in proportion to the level of activity
  4. 4. D · €560
  5. 5. C · 1.0
  6. 6. B · Net profit / shareholders' equity
  7. 7. B · Using the equity method as an associate
  8. 8. D · Make it, because the relevant cost of €20 is below €22

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