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

At the break-even point:

  1. AProfit is at its maximum
  2. BTotal revenue equals total costs
  3. CSales revenue is zero
  4. DVariable costs equal fixed costs
2.Easy

Accounts receivable are:

  1. AAmounts customers owe the company for sales on credit
  2. BCash held in the bank
  3. CShares owned by investors
  4. DAmounts the company owes its suppliers
3.Easy

Which body issues International Financial Reporting Standards (IFRS)?

  1. AThe International Monetary Fund (IMF)
  2. BThe International Accounting Standards Board (IASB)
  3. CThe European Central Bank (ECB)
  4. DThe World Trade Organization (WTO)
4.Medium

Budgeted sales are 1,500 units and the break-even point is 1,000 units. What is the margin of safety?

  1. A1,500 units
  2. B2,500 units
  3. C1,000 units
  4. D500 units
5.Medium

An asset costs €50,000, has a residual value of €5,000 and a useful life of 5 years. What is the annual straight-line depreciation?

  1. A€9,000
  2. B€10,000
  3. C€5,000
  4. D€11,000
6.Medium

Cost of sales is €600,000 and average inventory is €100,000. What is the inventory turnover?

  1. A0.17 times a year
  2. B6 times a year
  3. C16 times a year
  4. D60 times a year
7.Hard

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

  1. AShare premium
  2. BRevenue
  3. CRetained earnings
  4. DA liability
8.Hard

A firm has spent €50,000 on market research for a new product and must decide whether to launch it. How should the €50,000 be treated in the decision?

  1. ADeducted from expected sales
  2. BIgnored, because it is a sunk cost
  3. CSpread over the product's expected life
  4. DAdded to the launch cost

Answer key

  1. 1. B · Total revenue equals total costs
  2. 2. A · Amounts customers owe the company for sales on credit
  3. 3. B · The International Accounting Standards Board (IASB)
  4. 4. D · 500 units
  5. 5. A · €9,000
  6. 6. B · 6 times a year
  7. 7. A · Share premium
  8. 8. B · Ignored, because it is a sunk cost

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