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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy

Which of these is capital expenditure?

  1. APaying staff wages
  2. BPaying the monthly electricity bill
  3. CPaying for the van's fuel
  4. DBuying a new delivery van
2.Easy

Money or goods taken out of a sole trader's business for personal use are called:

  1. ADrawings
  2. BLiabilities
  3. CExpenses
  4. DDividends
3.Easy

Which body issues International Financial Reporting Standards (IFRS)?

  1. AThe International Accounting Standards Board (IASB)
  2. BThe European Central Bank (ECB)
  3. CThe International Monetary Fund (IMF)
  4. DThe World Trade Organization (WTO)
4.Medium

A product sells for €40 and has a variable cost of €30. What is its contribution-to-sales (C/S) ratio?

  1. A25%
  2. B75%
  3. C10%
  4. D33%
5.Medium

Why can a profitable company run out of cash?

  1. AProfitable companies never pay taxes
  2. BProfit includes credit sales and non-cash items, while cash may be tied up in receivables and inventory
  3. CCash is not recorded in accounting
  4. DProfit always equals cash
6.Medium

A firm buys 200 units at €5 and 300 units at €6, then sells 400 units. Using weighted average cost, what is closing inventory?

  1. A€500
  2. B€560
  3. C€600
  4. D€550
7.Hard

Production exceeds sales this period, so inventory rises. How does absorption costing profit compare with marginal costing profit?

  1. AMarginal costing profit is higher this period
  2. BAbsorption costing shows a loss
  3. CThey are always equal
  4. DAbsorption costing profit is higher
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. AConsolidate 100% of S line by line and show a non-controlling interest
  2. BAdd only 70% of each of S's assets, liabilities, income and expenses
  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. D · Buying a new delivery van
  2. 2. A · Drawings
  3. 3. A · The International Accounting Standards Board (IASB)
  4. 4. A · 25%
  5. 5. B · Profit includes credit sales and non-cash items, while cash may be tied up in receivables and inventory
  6. 6. B · €560
  7. 7. D · Absorption costing profit is higher
  8. 8. A · Consolidate 100% of S line by line and show a non-controlling interest

Full step-by-step solutions: practise this topic on examproblems.com.