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

Which statement shows cash coming in and going out in operating, investing and financing activities?

  1. AThe cash flow statement
  2. BThe income statement
  3. CThe notes to the accounts only
  4. DThe balance sheet
2.Easy

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

  1. AOpening inventory − purchases + closing inventory
  2. BPurchases + closing inventory
  3. COpening inventory + purchases − closing inventory
  4. DRevenue − purchases − closing inventory
3.Easy

Opportunity cost is:

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

A shop buys 100 units at €10, then 100 units at €12, and then sells 150 units. What is cost of sales using FIFO?

  1. A€1,650
  2. B€1,700
  3. C€1,500
  4. D€1,600
5.Medium

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

  1. AEarnings per share
  2. BThe gross margin
  3. CThe current ratio
  4. DReturn on equity
6.Medium

A machine costs €10,000 and is depreciated at 20% a year on the reducing balance. What is the depreciation charge in year 2?

  1. A€2,000
  2. B€1,800
  3. C€1,600
  4. D€4,000
7.Hard

A firm with spare capacity gets a one-off order at €35 per unit. Variable cost is €30 and full cost including fixed overhead is €42. Assuming no other effects, should it accept?

  1. ANo, the price is below full cost
  2. BYes, but only if the price exceeds €42
  3. CYes, each unit adds €5 contribution
  4. DNo, the order makes a €7 loss per unit
8.Hard

The standard is 2 labour hours per unit at €20 an hour. 500 units are made in 1,100 hours. What is the labour efficiency variance?

  1. A€22,000 adverse
  2. B€2,000 adverse
  3. C€2,000 favourable
  4. D€1,000 adverse

Answer key

  1. 1. A · The cash flow statement
  2. 2. C · Opening inventory + purchases − closing inventory
  3. 3. A · The value of the best alternative given up
  4. 4. D · €1,600
  5. 5. C · The current ratio
  6. 6. C · €1,600
  7. 7. C · Yes, each unit adds €5 contribution
  8. 8. B · €2,000 adverse

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