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 a non-current liability?

  1. AA bank loan repayable in five years
  2. BTax due within three months
  3. CA bank overdraft
  4. DTrade payables due to suppliers next month
2.Easy

What is the main purpose of a trial balance?

  1. ATo check that total debits equal total credits in the ledger
  2. BTo prove that no errors of any kind exist in the ledger accounts
  3. CTo list all customers who owe money
  4. DTo show the company's profit for the year
3.Easy

A bad debt is:

  1. AA loan with a high interest rate
  2. BA debt owed to a supplier that is overdue
  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

Under the accrual basis of accounting, revenue is recognised when:

  1. AThe customer pays the invoice, even if goods were delivered earlier
  2. BIt is earned, whether or not cash has been received
  3. CCash is received
  4. DThe tax return is filed
5.Medium

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

  1. ASpecific identification of each item
  2. BLIFO (last in, first out)
  3. CWeighted average cost
  4. DFIFO (first in, first out)
6.Medium

Which error will NOT be revealed by a trial balance?

  1. AA sale left out of the books entirely
  2. BA balance copied to the wrong column
  3. CA debit posted without a matching credit
  4. DA wrongly added ledger column
7.Hard

An asset has a carrying amount of €500,000, fair value less costs of disposal of €380,000 and value in use of €420,000. What impairment loss is recognised?

  1. A€200,000
  2. B€80,000
  3. C€0
  4. D€120,000
8.Hard

An asset is impaired when its carrying amount is higher than its:

  1. AOriginal purchase price
  2. BRecoverable amount (the higher of fair value less costs of disposal and value in use)
  3. CDepreciation charge
  4. DResidual value only

Answer key

  1. 1. A · A bank loan repayable in five years
  2. 2. A · To check that total debits equal total credits in the ledger
  3. 3. C · A receivable that the company does not expect to collect
  4. 4. B · It is earned, whether or not cash has been received
  5. 5. D · FIFO (first in, first out)
  6. 6. A · A sale left out of the books entirely
  7. 7. B · €80,000
  8. 8. B · Recoverable amount (the higher of fair value less costs of disposal and value in use)

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