Financial accounting worksheet with answers

A sunk cost is:

1. AA cost saved by a decision
2. BA cost already incurred that cannot be recovered
3. CA cost that will be paid next year
4. DA cost that changes in total with the level of output

Which body issues International Financial Reporting Standards (IFRS)?

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

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

1. ALiabilities
2. BDividends
3. CDrawings
4. DExpenses

Profit for ordinary shareholders is €500,000 and there are 1,000,000 ordinary shares. What are basic earnings per share?

1. A€5.00
2. B€0.05
3. C€0.50
4. D€2.00

Net working capital is:

1. ARevenue minus operating expenses
2. BTotal assets minus total liabilities
3. CCurrent assets minus current liabilities
4. DNon-current assets minus long-term loans

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

1. A4 times
2. B0.25 times
3. C3 times
4. D90,000 times

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

1. A2%
2. B20%
3. C50%
4. D5%

Under IFRS, how is purchased goodwill treated after acquisition?

1. AIt is revalued upwards every year
2. BIt is not amortised but tested for impairment at least annually
3. CIt is written off against equity immediately
4. DIt is amortised over 20 years