Financial accounting worksheet with answers

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

Which financial statement shows a company's financial position at one moment in time?

1. AThe balance sheet
2. BThe cash flow statement
3. CThe statement of changes in equity over the year
4. DThe income statement

An accrued expense (accrual) is:

1. AA cost that will never be paid
2. BIncome received before it is earned
3. CAn expense incurred in the period but not yet paid
4. DAn expense paid in advance that relates to next year

Operating profit is €120,000 and interest expense is €30,000. What is interest cover?

1. A0.25 times
2. B3 times
3. C4 times
4. D90,000 times

An item cost €80. It can be sold for €90, but €20 must be spent to sell it. At what amount is it shown in inventory?

1. A€60
2. B€80
3. C€90
4. D€70

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

Operating profit is €200,000 and capital employed (equity plus non-current liabilities) is €1,000,000. What is ROCE?

1. A5%
2. B20%
3. C2%
4. D50%

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

1. A135 days
2. B15 days
3. C105 days
4. D75 days