Financial accounting worksheet with answers

Contribution per unit is:

1. ASelling price minus full absorption cost per unit
2. BSelling price minus variable cost per unit
3. CRevenue minus fixed costs
4. DFixed costs divided by units sold

Opportunity cost is:

1. AThe total of all past costs
2. BThe interest paid on a loan
3. CThe cash cost of buying into a new opportunity
4. DThe value of the best alternative given up

Which of these is an intangible asset?

1. AA patent
2. BA delivery van
3. CInventory of finished goods
4. DCash in the bank

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

1. A6 times a year
2. B16 times a year
3. C0.17 times a year
4. D60 times a year

An item cost €80. It can be sold for €90, but €20 must be spent to sell it. At what amount is it shown in inventory?

1. A€70
2. B€60
3. C€90
4. D€80

Return on equity (ROE) is calculated as:

1. ACurrent assets / current liabilities
2. BNet profit / total revenue
3. CNet profit / shareholders' equity
4. DTotal assets / equity

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

1. ARevenue and inventory
2. BEquity and a provision
3. CA right-of-use asset and a lease liability
4. DAn operating expense only, spread evenly over the lease term

A company changes its inventory method from weighted average to FIFO because it gives more relevant information. Under IAS 8, how is this applied?

1. AIt is not allowed to change inventory methods
2. BProspectively, from the date of the change only
3. CBy recognising the whole effect as income this year
4. DRetrospectively, restating comparative figures as if FIFO had always been used