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

How does management accounting mainly differ from financial accounting?

  1. AIt is prepared only for tax authorities
  2. BIt provides information for internal decision-making rather than external users
  3. CIt only reports on past events
  4. DIt is regulated by IFRS and must be published
2.Easy

A budget is:

  1. AA report written by the external auditor
  2. BA financial plan for a future period
  3. CA list of the company's shareholders
  4. DA record of last year's transactions
3.Easy

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

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

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

  1. A10%
  2. B33%
  3. C75%
  4. D25%
5.Medium

Which ratio measures a company's ability to pay its short-term obligations?

  1. AThe current ratio
  2. BEarnings per share
  3. CThe gross margin
  4. DReturn on equity
6.Medium

A machine costs €10,000 and is depreciated at 20% a year on the reducing balance. What is the depreciation charge in year 2?

  1. A€2,000
  2. B€1,600
  3. C€1,800
  4. D€4,000
7.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 lease with a term of 12 months or less
  2. BAny lease of land and buildings
  3. CA ten-year lease of a large production machine
  4. DAny lease with monthly payments
8.Hard

Under IFRS, how is purchased goodwill treated after acquisition?

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

Answer key

  1. 1. B · It provides information for internal decision-making rather than external users
  2. 2. B · A financial plan for a future period
  3. 3. C · Drawings
  4. 4. D · 25%
  5. 5. A · The current ratio
  6. 6. B · €1,600
  7. 7. A · A lease with a term of 12 months or less
  8. 8. D · It is not amortised but tested for impairment at least annually

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