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 is a liability?

  1. ACash in hand
  2. BInventory
  3. CA loan from a bank
  4. DShare capital paid in by owners
2.Easy

The gross profit margin is calculated as:

  1. ANet profit ÷ revenue × 100
  2. BRevenue ÷ cost of sales × 100
  3. CGross profit ÷ revenue × 100
  4. DGross profit ÷ total assets × 100
3.Easy

How does management accounting mainly differ from financial accounting?

  1. AIt only reports on past events
  2. BIt is prepared only for tax authorities
  3. CIt is regulated by IFRS and must be published
  4. DIt provides information for internal decision-making rather than external users
4.Medium

Retained earnings represent:

  1. AMoney owed to shareholders
  2. BThe share price
  3. CCash kept in the bank
  4. DAccumulated profits that have not been paid out as dividends
5.Medium

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. C73 days
  4. D7.3 days
6.Medium

A company increases its allowance for doubtful receivables. What is the effect?

  1. ACash decreases immediately
  2. BOnly the notes change; no figures move
  3. CAn expense is recognised and net receivables fall
  4. DRevenue increases and gross receivables rise by the same amount
7.Hard

Two firms have the same operating profit, but one is financed mostly by debt. When operating profit falls by 20%, the highly geared firm's net profit:

  1. AFalls by exactly 20% as well
  2. BFalls by a smaller percentage
  3. CFalls by a larger percentage
  4. DRises because interest is fixed
8.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€1,000 adverse
  2. B€2,000 adverse
  3. C€22,000 adverse
  4. D€2,000 favourable

Answer key

  1. 1. C · A loan from a bank
  2. 2. C · Gross profit ÷ revenue × 100
  3. 3. D · It provides information for internal decision-making rather than external users
  4. 4. D · Accumulated profits that have not been paid out as dividends
  5. 5. A · 50 days
  6. 6. C · An expense is recognised and net receivables fall
  7. 7. C · Falls by a larger percentage
  8. 8. B · €2,000 adverse

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