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

The systematic allocation of the cost of an intangible asset over its useful life is called:

  1. AAccrual
  2. BDepreciation of land
  3. CAmortisation
  4. DRevaluation
2.Easy

Which body issues International Financial Reporting Standards (IFRS)?

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

How is cost of goods sold calculated for a trading business?

  1. APurchases + closing inventory
  2. BOpening inventory − purchases + closing inventory
  3. COpening inventory + purchases − closing inventory
  4. DRevenue − purchases − closing inventory
4.Medium

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

  1. AThe current ratio
  2. BEarnings per share
  3. CReturn on equity
  4. DThe gross margin
5.Medium

Operating profit is €120,000 and interest expense is €30,000. What is interest cover?

  1. A4 times
  2. B0.25 times
  3. C90,000 times
  4. D3 times
6.Medium

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

  1. A5 years
  2. B4 years
  3. C2.5 years
  4. D25 years
7.Hard

Budgeted overhead is €200,000 for 40,000 machine hours. Actual hours are 42,000 and actual overhead is €205,000. What is the result?

  1. AOverhead under-absorbed by €5,000
  2. BOverhead exactly absorbed
  3. COverhead under-absorbed by €10,000
  4. DOverhead over-absorbed by €5,000
8.Hard

A company switches to a depreciation method that gives higher charges. Ignoring tax, what happens to cash flow?

  1. ACash flow and profit both rise
  2. BCash flow falls by the amount of the extra depreciation
  3. CCash flow is unchanged, although profit falls
  4. DCash flow rises by the extra depreciation

Answer key

  1. 1. C · Amortisation
  2. 2. C · The International Accounting Standards Board (IASB)
  3. 3. C · Opening inventory + purchases − closing inventory
  4. 4. A · The current ratio
  5. 5. A · 4 times
  6. 6. B · 4 years
  7. 7. D · Overhead over-absorbed by €5,000
  8. 8. C · Cash flow is unchanged, although profit falls

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