Financial accounting worksheet with answers

Which statement shows cash coming in and going out in operating, investing and financing activities?

1. AThe cash flow statement
2. BThe income statement
3. CThe balance sheet
4. DThe notes to the accounts only

In double-entry bookkeeping, every transaction:

1. AIs recorded only once
2. BIncreases both assets and expenses equally
3. CIs recorded with equal debits and credits
4. DMust involve cash

Accounts receivable are:

1. AAmounts customers owe the company for sales on credit
2. BAmounts the company owes its suppliers
3. CCash held in the bank
4. DShares owned by investors

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

1. A50 days
2. B36.5 days
3. C7.3 days
4. D73 days

Under IAS 38, how are research and development costs treated?

1. AResearch is expensed; development is capitalised only when strict criteria are met
2. BResearch is capitalised; development is expensed
3. CBoth are always capitalised as intangible assets
4. DBoth are always expensed immediately

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

1. AIgnored completely
2. BRecognised as an expense and paid into a reserve
3. CRecognised as a provision on the balance sheet
4. DDisclosed as a contingent liability in the notes

Inventory days are 60, receivable days 45 and payable days 30. What is the cash conversion (operating) cycle?

1. A75 days
2. B135 days
3. C15 days
4. D105 days

Under IFRS, how is purchased goodwill treated after acquisition?

1. AIt is amortised over 20 years
2. BIt is not amortised but tested for impairment at least annually
3. CIt is written off against equity immediately
4. DIt is revalued upwards every year