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

At the break-even point:

  1. AProfit is at its maximum
  2. BTotal revenue equals total costs
  3. CVariable costs equal fixed costs
  4. DSales revenue is zero
2.Easy

Under IAS 2, inventory is measured at:

  1. AIts expected selling price
  2. BIts original cost, whatever happens
  3. CThe lower of cost and net realisable value
  4. DThe higher of cost and current replacement cost
3.Easy

How does management accounting mainly differ from financial accounting?

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

Which inventory valuation method assumes the oldest goods are sold first?

  1. AFIFO (first in, first out)
  2. BSpecific identification of each item
  3. CLIFO (last in, first out)
  4. DWeighted average cost
5.Medium

Budgeted sales are 1,500 units and the break-even point is 1,000 units. What is the margin of safety?

  1. A1,000 units
  2. B1,500 units
  3. C2,500 units
  4. D500 units
6.Medium

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

  1. A2.0
  2. B4.5
  3. C0.5
  4. D1.5
7.Hard

Under the IAS 16 revaluation model, a building is revalued upwards for the first time. Where does the gain go?

  1. ATo revenue in the income statement
  2. BTo a provision on the balance sheet
  3. CTo other comprehensive income and a revaluation surplus in equity
  4. DTo retained earnings as a realised profit
8.Hard

Under IFRS 16, a lessee typically recognises a lease on the balance sheet as:

  1. AEquity and a provision
  2. BRevenue and inventory
  3. CAn operating expense only, spread evenly over the lease term
  4. DA right-of-use asset and a lease liability

Answer key

  1. 1. B · Total revenue equals total costs
  2. 2. C · The lower of cost and net realisable value
  3. 3. B · It provides information for internal decision-making rather than external users
  4. 4. A · FIFO (first in, first out)
  5. 5. D · 500 units
  6. 6. A · 2.0
  7. 7. C · To other comprehensive income and a revaluation surplus in equity
  8. 8. D · A right-of-use asset and a lease liability

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