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 is a liability?

  1. ACash in hand
  2. BShare capital paid in by owners
  3. CInventory
  4. DA loan from a bank
2.Easy

What is the main purpose of an external audit?

  1. ATo prepare the company's financial statements
  2. BTo give an independent opinion on whether the financial statements give a true and fair view
  3. CTo decide the company's dividend policy
  4. DTo guarantee that no fraud has happened
3.Easy

A variable cost is a cost that:

  1. AStays the same in total within the relevant range of output
  2. BIs never included in product costs
  3. CIs paid only once when a business starts
  4. DChanges in total in proportion to the level of activity
4.Medium

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

  1. A7.3 days
  2. B36.5 days
  3. C50 days
  4. D73 days
5.Medium

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

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

Return on equity (ROE) is calculated as:

  1. ANet profit / shareholders' equity
  2. BCurrent assets / current liabilities
  3. CNet profit / total revenue
  4. DTotal assets / equity
7.Hard

Company P buys 70% of the voting shares of S and gains control. How does P report S in its group accounts?

  1. AConsolidate 100% of S line by line and show a non-controlling interest
  2. BAdd only 70% of each of S's assets, liabilities, income and expenses
  3. CKeep the investment at cost and report only the dividends received from S
  4. DShow one equity-method investment line for its 70% share of S
8.Hard

Under IFRS 15, revenue is recognised:

  1. AWhen the contract is signed
  2. BWhen (or as) the entity satisfies a performance obligation by transferring control to the customer
  3. COnly when cash is received
  4. DAt the end of the financial year

Answer key

  1. 1. D · A loan from a bank
  2. 2. B · To give an independent opinion on whether the financial statements give a true and fair view
  3. 3. D · Changes in total in proportion to the level of activity
  4. 4. C · 50 days
  5. 5. C · The current ratio
  6. 6. A · Net profit / shareholders' equity
  7. 7. A · Consolidate 100% of S line by line and show a non-controlling interest
  8. 8. B · When (or as) the entity satisfies a performance obligation by transferring control to the customer

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