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

Revenue minus all expenses equals:

  1. AGross profit, before operating expenses
  2. BCash flow
  3. CEquity
  4. DNet profit (or loss)
2.Easy

Which of these increases a sole trader's capital (equity)?

  1. ABuying inventory for cash
  2. BA profit for the year
  3. CDrawings by the owner
  4. DRepaying a bank loan
3.Easy

A bad debt is:

  1. AA debt owed to a supplier that is overdue
  2. BA loan with a high interest rate
  3. CA receivable that the company does not expect to collect
  4. DAny loan taken out by a company that is currently making losses
4.Medium

A product sells for €40 and has a variable cost of €30. What is its contribution-to-sales (C/S) ratio?

  1. A33%
  2. B75%
  3. C10%
  4. D25%
5.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€11,000
  3. C€5,000
  4. D€10,000
6.Medium

Trade receivables are €50,000 and annual credit sales are €365,000. What are the receivable days?

  1. A50 days
  2. B73 days
  3. C36.5 days
  4. D7.3 days
7.Hard

Tax rules allow faster depreciation of a machine than the company uses in its accounts. What arises under IAS 12?

  1. ANo tax effect at all
  2. BA deferred tax asset
  3. CA refund of current tax paid
  4. DA deferred tax liability
8.Hard

A company's debt-to-equity ratio rises sharply. What does this usually indicate?

  1. AThat shareholders invested more money
  2. BHigher profitability
  3. CBetter liquidity in the short term
  4. DHigher financial risk because the company relies more on borrowed money

Answer key

  1. 1. D · Net profit (or loss)
  2. 2. B · A profit for the year
  3. 3. C · A receivable that the company does not expect to collect
  4. 4. D · 25%
  5. 5. A · €9,000
  6. 6. A · 50 days
  7. 7. D · A deferred tax liability
  8. 8. D · Higher financial risk because the company relies more on borrowed money

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