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

Revenue minus all expenses equals:

  1. AGross profit, before operating expenses
  2. BNet profit (or loss)
  3. CEquity
  4. DCash flow
3.Easy

Contribution per unit is:

  1. AFixed costs divided by units sold
  2. BSelling price minus variable cost per unit
  3. CSelling price minus full absorption cost per unit
  4. DRevenue minus fixed costs
4.Medium

The prudence (conservatism) concept suggests that accountants should:

  1. AAvoid overstating assets and income under uncertainty
  2. BIgnore possible losses
  3. CAlways record the highest possible profit to attract investors
  4. DValue assets at their selling price
5.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. B75%
  3. C25%
  4. D33%
6.Medium

Retained earnings represent:

  1. AThe share price
  2. BMoney owed to shareholders
  3. CAccumulated profits that have not been paid out as dividends
  4. DCash kept in the bank
7.Hard

The going concern assumption means financial statements are prepared assuming the entity:

  1. AHas no debts
  2. BWill be sold within one year
  3. CWill continue to operate for the foreseeable future
  4. DWill make a profit every year
8.Hard

A company issues shares at €5 each with a nominal value of €1. The extra €4 per share is recorded as:

  1. ARevenue
  2. BA liability
  3. CRetained earnings
  4. DShare premium

Answer key

  1. 1. A · It provides information for internal decision-making rather than external users
  2. 2. B · Net profit (or loss)
  3. 3. B · Selling price minus variable cost per unit
  4. 4. A · Avoid overstating assets and income under uncertainty
  5. 5. C · 25%
  6. 6. C · Accumulated profits that have not been paid out as dividends
  7. 7. C · Will continue to operate for the foreseeable future
  8. 8. D · Share premium

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