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

A customer pays in advance for services the company will provide next year. At year end the money is shown as:

  1. ARevenue of this year (cash received)
  2. BA non-current asset
  3. CA liability (deferred revenue)
  4. DAn expense of this year
2.Easy

The gross profit margin is calculated as:

  1. ANet profit ÷ revenue × 100
  2. BGross profit ÷ revenue × 100
  3. CGross profit ÷ total assets × 100
  4. DRevenue ÷ cost of sales × 100
3.Easy

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

  1. ADrawings
  2. BExpenses
  3. CDividends
  4. DLiabilities
4.Medium

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

  1. A90,000 times
  2. B3 times
  3. C4 times
  4. D0.25 times
5.Medium

Fixed costs are €20,000, the selling price is €50 and the variable cost is €30 per unit. What is the break-even point?

  1. A667 units
  2. B2,000 units
  3. C1,000 units
  4. D400 units
6.Medium

A provision is recognised when a company has:

  1. ACash set aside in a separate account
  2. BA profit to distribute
  3. CA possible future loss with no obligation
  4. DA present obligation from a past event, a probable outflow and a reliable estimate
7.Hard

A firm has spent €50,000 on market research for a new product and must decide whether to launch it. How should the €50,000 be treated in the decision?

  1. ASpread over the product's expected life
  2. BIgnored, because it is a sunk cost
  3. CAdded to the launch cost
  4. DDeducted from expected sales
8.Hard

The standard price of material is €5 per kg. The company buys 1,000 kg for €5,400. What is the material price variance?

  1. A€400 favourable
  2. B€0.40 adverse
  3. C€5,400 adverse
  4. D€400 adverse

Answer key

  1. 1. C · A liability (deferred revenue)
  2. 2. B · Gross profit ÷ revenue × 100
  3. 3. A · Drawings
  4. 4. C · 4 times
  5. 5. C · 1,000 units
  6. 6. D · A present obligation from a past event, a probable outflow and a reliable estimate
  7. 7. B · Ignored, because it is a sunk cost
  8. 8. D · €400 adverse

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