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

Accounts receivable are:

  1. AAmounts customers owe the company for sales on credit
  2. BCash held in the bank
  3. CAmounts the company owes its suppliers
  4. DShares owned by investors
2.Easy

Which body issues International Financial Reporting Standards (IFRS)?

  1. AThe International Accounting Standards Board (IASB)
  2. BThe European Central Bank (ECB)
  3. CThe International Monetary Fund (IMF)
  4. DThe World Trade Organization (WTO)
3.Easy

Which of these is a current asset?

  1. AMachinery
  2. BLand
  3. CInventory
  4. DA long-term bank loan
4.Medium

Cost of sales is €600,000 and average inventory is €100,000. What is the inventory turnover?

  1. A0.17 times a year
  2. B60 times a year
  3. C16 times a year
  4. D6 times a year
5.Medium

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

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

A project costs €100,000 and brings in €25,000 cash per year. What is its payback period?

  1. A4 years
  2. B5 years
  3. C2.5 years
  4. D25 years
7.Hard

In the indirect method of the cash flow statement, depreciation is:

  1. AAdded back to net profit because it is a non-cash expense
  2. BSubtracted from net profit
  3. CIgnored completely
  4. DShown in financing activities
8.Hard

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

  1. A20%
  2. B2%
  3. C5%
  4. D50%

Answer key

  1. 1. A · Amounts customers owe the company for sales on credit
  2. 2. A · The International Accounting Standards Board (IASB)
  3. 3. C · Inventory
  4. 4. D · 6 times a year
  5. 5. A · Research is expensed; development is capitalised only when strict criteria are met
  6. 6. A · 4 years
  7. 7. A · Added back to net profit because it is a non-cash expense
  8. 8. A · 20%

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