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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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

What is the main purpose of an external audit?

  1. ATo give an independent opinion on whether the financial statements give a true and fair view
  2. BTo prepare the company's financial statements
  3. CTo decide the company's dividend policy
  4. DTo guarantee that no fraud has happened
3.Easy

What is the basic accounting equation?

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

Net working capital is:

  1. ANon-current assets minus long-term loans
  2. BRevenue minus operating expenses
  3. CCurrent assets minus current liabilities
  4. DTotal assets minus total liabilities
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€11,000
  2. B€10,000
  3. C€9,000
  4. D€5,000
6.Medium

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

  1. ABoth are always capitalised as intangible assets
  2. BResearch is expensed; development is capitalised only when strict criteria are met
  3. CBoth are always expensed immediately
  4. DResearch is capitalised; development is expensed
7.Hard

The standard is 2 labour hours per unit at €20 an hour. 500 units are made in 1,100 hours. What is the labour efficiency variance?

  1. A€22,000 adverse
  2. B€2,000 adverse
  3. C€2,000 favourable
  4. D€1,000 adverse
8.Hard

A parent sold goods to its subsidiary at a profit, and the subsidiary still holds them at year end. What must happen on consolidation?

  1. AThe sale is shown as external revenue of the group
  2. BThe profit is shown twice, once for each company
  3. CNothing, because each company is a separate entity
  4. DThe unrealised profit in inventory is eliminated

Answer key

  1. 1. A · It provides information for internal decision-making rather than external users
  2. 2. A · To give an independent opinion on whether the financial statements give a true and fair view
  3. 3. C · Assets = Liabilities + Equity
  4. 4. C · Current assets minus current liabilities
  5. 5. C · €9,000
  6. 6. B · Research is expensed; development is capitalised only when strict criteria are met
  7. 7. B · €2,000 adverse
  8. 8. D · The unrealised profit in inventory is eliminated

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