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

In double-entry bookkeeping, an increase in an asset account is recorded as:

  1. AA credit
  2. BA debit
  3. CA debit to equity
  4. DA credit to revenue only
3.Easy

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

  1. ADrawings
  2. BLiabilities
  3. CExpenses
  4. DDividends
4.Medium

Which ratio measures a company's ability to pay its short-term obligations?

  1. AThe gross margin
  2. BReturn on equity
  3. CThe current ratio
  4. DEarnings per share
5.Medium

The prudence (conservatism) concept suggests that accountants should:

  1. AAvoid overstating assets and income under uncertainty
  2. BIgnore possible losses
  3. CValue assets at their selling price
  4. DAlways record the highest possible profit to attract investors
6.Medium

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

  1. A0.5
  2. B1.0
  3. C1.5
  4. D2.0
7.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. AA ten-year lease of a large production machine
  2. BAny lease of land and buildings
  3. CA lease with a term of 12 months or less
  4. DAny lease with monthly payments
8.Hard

A firm has a net profit margin of 5%, asset turnover of 2 and an equity multiplier (assets ÷ equity) of 1.5. Using the DuPont analysis, what is ROE?

  1. A15%
  2. B10%
  3. C7.5%
  4. D8.5%

Answer key

  1. 1. C · A financial plan for a future period
  2. 2. B · A debit
  3. 3. A · Drawings
  4. 4. C · The current ratio
  5. 5. A · Avoid overstating assets and income under uncertainty
  6. 6. B · 1.0
  7. 7. C · A lease with a term of 12 months or less
  8. 8. A · 15%

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