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

An accrued expense (accrual) is:

  1. AAn expense paid in advance that relates to next year
  2. BAn expense incurred in the period but not yet paid
  3. CIncome received before it is earned
  4. DA cost that will never be paid
2.Easy

The systematic allocation of the cost of an intangible asset over its useful life is called:

  1. AAccrual
  2. BDepreciation of land
  3. CAmortisation
  4. DRevaluation
3.Easy

Which of these is a non-current liability?

  1. AA bank overdraft
  2. BTrade payables due to suppliers next month
  3. CA bank loan repayable in five years
  4. DTax due within three months
4.Medium

A machine with a carrying amount of €3,000 is sold for €4,000. What is recorded in the income statement?

  1. AA gain on disposal of €1,000
  2. BRevenue of €4,000
  3. CA loss on disposal of €1,000
  4. DA gain on disposal of €4,000
5.Medium

A provision is recognised when a company has:

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

Retained earnings represent:

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

Production exceeds sales this period, so inventory rises. How does absorption costing profit compare with marginal costing profit?

  1. AThey are always equal
  2. BAbsorption costing shows a loss
  3. CMarginal costing profit is higher this period
  4. DAbsorption costing profit is higher
8.Hard

Machine hours are scarce. Product X earns €20 contribution and needs 4 hours; product Y earns €15 and needs 2 hours. Which should be made first?

  1. AX, because it uses more machine time
  2. BEither, because the total contribution is the same
  3. CX, because it earns more contribution per unit
  4. DY, because it earns €7.50 per hour versus €5 for X

Answer key

  1. 1. B · An expense incurred in the period but not yet paid
  2. 2. C · Amortisation
  3. 3. C · A bank loan repayable in five years
  4. 4. A · A gain on disposal of €1,000
  5. 5. B · A present obligation from a past event, a probable outflow and a reliable estimate
  6. 6. B · Accumulated profits that have not been paid out as dividends
  7. 7. D · Absorption costing profit is higher
  8. 8. D · Y, because it earns €7.50 per hour versus €5 for X

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