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 of these is an intangible asset?

  1. AA delivery van
  2. BCash in the bank
  3. CA patent
  4. DInventory of finished goods
2.Easy

Under the cash basis of accounting, income and expenses are recorded when:

  1. ACash is received or paid
  2. BThe goods are ordered
  3. CThe invoice is approved by the board
  4. DThe financial year ends
3.Easy

Which of these is a current asset?

  1. AMachinery
  2. BLand
  3. CInventory
  4. DA long-term bank loan
4.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
5.Medium

Current assets are €300,000, including inventory of €100,000. Current liabilities are €200,000. What is the quick (acid-test) ratio?

  1. A2.0
  2. B1.0
  3. C0.5
  4. D1.5
6.Medium

Current assets are €300,000 and current liabilities are €150,000. What is the current ratio?

  1. A4.5
  2. B2.0
  3. C0.5
  4. D1.5
7.Hard

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. ARetrospectively, restating comparative figures as if FIFO had always been used
  2. BIt is not allowed to change inventory methods
  3. CProspectively, from the date of the change only
  4. DBy recognising the whole effect as income this year
8.Hard

Under IFRS 16, which lease may a lessee choose to expense on a straight-line basis instead of recognising a right-of-use asset?

  1. AA ten-year lease of a large production machine
  2. BAny lease of land and buildings
  3. CAny lease with monthly payments
  4. DA lease with a term of 12 months or less

Answer key

  1. 1. C · A patent
  2. 2. A · Cash is received or paid
  3. 3. C · Inventory
  4. 4. A · 4 times
  5. 5. B · 1.0
  6. 6. B · 2.0
  7. 7. A · Retrospectively, restating comparative figures as if FIFO had always been used
  8. 8. D · A lease with a term of 12 months or less

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