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 increases a sole trader's capital (equity)?

  1. AA profit for the year
  2. BRepaying a bank loan
  3. CDrawings by the owner
  4. DBuying inventory for cash
2.Easy

What is the basic accounting equation?

  1. AEquity = Assets + Liabilities
  2. BProfit = Assets − Liabilities
  3. CAssets = Revenue − Expenses
  4. DAssets = Liabilities + Equity
3.Easy

A budget is:

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

Current assets are €300,000, including inventory of €100,000. Current liabilities are €200,000. What is the quick (acid-test) ratio?

  1. A0.5
  2. B2.0
  3. C1.0
  4. D1.5
5.Medium

A company is being sued. Its lawyers say losing is possible but not probable. How is this treated under IAS 37?

  1. ARecognised as an expense and paid into a reserve
  2. BIgnored completely
  3. CDisclosed as a contingent liability in the notes
  4. DRecognised as a provision on the balance sheet
6.Medium

A provision is recognised when a company has:

  1. AA present obligation from a past event, a probable outflow and a reliable estimate
  2. BA profit to distribute
  3. CCash set aside in a separate account
  4. DA possible future loss with no obligation
7.Hard

A firm with spare capacity gets a one-off order at €35 per unit. Variable cost is €30 and full cost including fixed overhead is €42. Assuming no other effects, should it accept?

  1. AYes, each unit adds €5 contribution
  2. BNo, the price is below full cost
  3. CYes, but only if the price exceeds €42
  4. DNo, the order makes a €7 loss per unit
8.Hard

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

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

Answer key

  1. 1. A · A profit for the year
  2. 2. D · Assets = Liabilities + Equity
  3. 3. A · A financial plan for a future period
  4. 4. C · 1.0
  5. 5. C · Disclosed as a contingent liability in the notes
  6. 6. A · A present obligation from a past event, a probable outflow and a reliable estimate
  7. 7. A · Yes, each unit adds €5 contribution
  8. 8. C · Recoverable amount (the higher of fair value less costs of disposal and value in use)

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