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

Which of these is a non-current liability?

  1. AA bank overdraft
  2. BTax due within three months
  3. CA bank loan repayable in five years
  4. DTrade payables due to suppliers next month
2.Easy

Which is a liability?

  1. AInventory
  2. BShare capital paid in by owners
  3. CA loan from a bank
  4. DCash in hand
3.Easy

Which of these increases a sole trader's capital (equity)?

  1. ADrawings by the owner
  2. BBuying inventory for cash
  3. CA profit for the year
  4. DRepaying a bank loan
4.Medium

A machine costs €10,000 and is depreciated at 20% a year on the reducing balance. What is the depreciation charge in year 2?

  1. A€1,800
  2. B€1,600
  3. C€4,000
  4. D€2,000
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

Revenue is €200,000 and cost of sales is €140,000. What is the gross profit margin?

  1. A70%
  2. B30%
  3. C43%
  4. D60%
7.Hard

A company changes its inventory method from weighted average to FIFO because it gives more relevant information. Under IAS 8, how is this applied?

  1. ARetrospectively, restating comparative figures as if FIFO had always been used
  2. BProspectively, from the date of the change only
  3. CBy recognising the whole effect as income this year
  4. DIt is not allowed to change inventory methods
8.Hard

Company P buys 70% of the voting shares of S and gains control. How does P report S in its group accounts?

  1. AAdd only 70% of each of S's assets, liabilities, income and expenses
  2. BConsolidate 100% of S line by line and show a non-controlling interest
  3. CKeep the investment at cost and report only the dividends received from S
  4. DShow one equity-method investment line for its 70% share of S

Answer key

  1. 1. C · A bank loan repayable in five years
  2. 2. C · A loan from a bank
  3. 3. C · A profit for the year
  4. 4. B · €1,600
  5. 5. C · 25%
  6. 6. B · 30%
  7. 7. A · Retrospectively, restating comparative figures as if FIFO had always been used
  8. 8. B · Consolidate 100% of S line by line and show a non-controlling interest

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