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 financial statement shows a company's financial position at one moment in time?

  1. AThe balance sheet
  2. BThe statement of changes in equity over the year
  3. CThe cash flow statement
  4. DThe income statement
2.Easy

What is the main purpose of a trial balance?

  1. ATo prove that no errors of any kind exist in the ledger accounts
  2. BTo show the company's profit for the year
  3. CTo check that total debits equal total credits in the ledger
  4. DTo list all customers who owe money
3.Easy

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

  1. ADrawings
  2. BDividends
  3. CLiabilities
  4. DExpenses
4.Medium

An asset costs €50,000, has a residual value of €5,000 and a useful life of 5 years. What is the annual straight-line depreciation?

  1. A€9,000
  2. B€5,000
  3. C€10,000
  4. D€11,000
5.Medium

Under the accrual basis of accounting, revenue is recognised when:

  1. AThe customer pays the invoice, even if goods were delivered earlier
  2. BIt is earned, whether or not cash has been received
  3. CThe tax return is filed
  4. DCash is received
6.Medium

Which error will NOT be revealed by a trial balance?

  1. AA debit posted without a matching credit
  2. BA wrongly added ledger column
  3. CA sale left out of the books entirely
  4. DA balance copied to the wrong column
7.Hard

Goodwill arises in a business combination when:

  1. AAssets are revalued upwards
  2. BThe acquired company makes a loss
  3. CA company has a good reputation
  4. DThe consideration paid exceeds the fair value of identifiable net assets acquired
8.Hard

Under IFRS 15, revenue is recognised:

  1. AWhen the contract is signed
  2. BAt the end of the financial year
  3. CWhen (or as) the entity satisfies a performance obligation by transferring control to the customer
  4. DOnly when cash is received

Answer key

  1. 1. A · The balance sheet
  2. 2. C · To check that total debits equal total credits in the ledger
  3. 3. A · Drawings
  4. 4. A · €9,000
  5. 5. B · It is earned, whether or not cash has been received
  6. 6. C · A sale left out of the books entirely
  7. 7. D · The consideration paid exceeds the fair value of identifiable net assets acquired
  8. 8. C · When (or as) the entity satisfies a performance obligation by transferring control to the customer

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