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Statement of Financial Position

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

Also called as Balance Sheet.

a)

Statement of Financial Position

b)

Financial Statements

c)

Statement of Balance

d)

Statement of Income

2.

This is what the business owns.

a)

Assets

b)

Liablities

c)

Loans

d)

Owner's Capital

3.

This is what the business owes.

a)

Assets

b)

Liabilities

c)

Loans

d)

Owner's Capital

4.

What is NOT part of FS headings.

a)

Name of the business

b)

Title of Report

c)

Total Assets

d)

Date of the report

5.

It is intended for sale or consumption within the entity’s normal operating cycle.

a)

Non-current liabilities

b)

Current liabilities

c)

Non-current Assets

d)

Current Assets

6.

Also known as the "Long-term Assets"

a)

Non-current Assets

b)

Current Assets

c)

Non-current liabilities

d)

Current Liabilities

7.

A liability expected to be settled in the entity’s normal operating cycle.

a)

Non-current Assets

b)

Current Assets

c)

Non-current Liabilities

d)

Current Liabilities

8.

Refers to the financial obligations of a company that are not expected to be settled within one year.

a)

Non-current Assets

b)

Current Assets

c)

Non-Current Liabilities

d)

Current Liabilities

9.

Following are accounts under _________________.

•Cash and cash equivalents

•Trade and other receivables

•Inventories

•Investments

•Financial assets

•Investment property

•Property, plant, and equipment

a)

Assets

b)

Liabilities

c)

Owner's Capital

10.

Following are accounts under________.

•Trade and other payable

•Provision

•Financial liabilities

•Liabilities for taxes

a)

Assets

b)

Liabilities

c)

Owner's Capital

11.

Retained Earnings can be found under _____________.

a)

Assets

b)

Liabilities

c)

Capital employed

12.

These are the resources owned by the company that can provide future economic benefits.

a)

Assets

b)

Liabilities

c)

Owner's Capital

13.

These are the cost of goods and services that are used or consumed in the operation of the business.

a)

Expenses

b)

Income

c)

Liabilities

14.

It informs the users of the financial condition of the business at a given date.

a)

Statement of Financial Position

b)

Financial Statement

c)

Statement of Income

15.

Another name for the statement of Financial Position.

a)

Balance Sheet

b)

Income Statement

c)

Pofit and Loss Statement

16.

A debt or obligation owed to others.

a)

Liabilities

b)

Assets

c)

Owner's Capital/Equity

17.

An increase in economic benefits during the period of time in the form of inflows.

a)

Liabilities

b)

income

c)

expenses

18.

Cash in Bank is classified as

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

19.

Account Receivable is classified as

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

20.

Furniture and Fixtures is classified as

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

21.

Cash on hand is an example of a

a)

Monetary asset

b)

Tangible asset

c)

Investment asset

22.

Money owed to others is an example of

a)

Monetary asset

b)

Tangible asset

c)

Liability

23.

Cash in Bank

a)

Current Assets

b)

Non-Current Assets

24.

Merchandise Inventory

a)

Current Assets

b)

Non-Current Assets

25.

Land

a)

Current Assets

b)

Non-Current Assets

26.

Prepaid Rent

a)

Current Assets

b)

Non-Current Assets

27.

Supplies

a)

Current Assets

b)

Non-Current Assets

28.

Building

a)

Current Assets

b)

Non-Current Assets

29.

Accounts Receivable

a)

Current Assets

b)

Non-Current Assets

30.

Equipment

a)

Current Assets

b)

Non-Current Assets

31.

Petty Cash

a)

Current Assets

b)

Non-Current Assets

32.

Land

a)

Cash and Cash Equivalents

b)

Trade and Other Receivables

c)

Prepaid Expenses

d)

Property, Plant, and Equipment

33.

Patent

a)

Cash and Cash Equivalents

b)

Trade and Other Receivables

c)

Prepaid Expenses

d)

Intangible Assets

34.

Accrued Income

a)

Current Assets

b)

Non-Current Assets

35.

What is a statement of financial position?

a)

Tells you how much money a business has.

b)

It is a financial snapshot of the assets and liabilities of an enterprise on a particular day.

c)

It is a financial snapshot of the assets and liabilities of an enterprise.

36.

Select three examples of an asset?

a)
b)
c)
d)
37.

Current liabilities are short-term debts. The money owed must be paid back within one year.

a)

True

b)

False

38.

Long-term liabilities are debts paid back over a long period of time.

a)

True

b)

False

39.

Current assets can be turned into cash within ...

a)

two years

b)

three years

c)

a year

40.

To calculate the Net current assets you need which information?

a)

Current assets

b)

Total liabilities

c)

Current liabilities

d)

Fixed assets

41.

The financial statement that reports the assets, liabilities, and shareholders' equity or owner's capital at a specific date is the:

a)

Statement of Financial Position

b)

Statement of Consolidated Income

c)

Trial Balance

d)

General Ledger

42.

Something the business owns is:

a)

accounts

b)

assets

c)

drawings

d)

expense

43.

An overdraft is a:

a)

Current Asset

b)

Current Liability

c)

Non-current Asset

d)

Non-current Liability

44.

A business' inventory is a:

a)

Current Assets

b)

Current Liabilities

c)

Non-current Assets

d)

Non-current Liabilities

45.

Which of these might appear on a Statement Of Financial Position?

a)

Cost of sales

b)

Interest income

c)

Salaries and wages

d)

Creditors

46.
Current liabilities are Long term
a)
True
b)
False
47.

Accounts Payable is a current liability.

a)

True

b)

False

48.

Non-current assets can be converted to cash really quickly.

a)

True

b)

False

49.

A statement of financial position shows:

a)

how much gross profit it has

b)

how much net profit it has

c)

how much a business owns and owes

50.

Which of the following statements is correct?

a)

Profit for the year equals the Net Assets

b)

The profit from the Statement of Consolidated Income is transferred to the Capital Employed section of the Statement of Financial Position

c)

Assets plus liabilities equals Net Assets, which is also equal to closing capital

d)

Closing capital = opening bank balance + profit - drawings/

51.

A business has:

Total Non current Assets = £20,000

Total Current Assets = £5,000

Total Current Liabilities = £3,000


Q) What is the amount of Net current assets?

a)

£2,000

b)

£17,000

c)

£3,000

d)

(£2,000)

e)

£15,000

52.

Calculate the cash figure (1 mark)

(a)  

53.

Calculate the Trade Payables figure (1 mark)

(a)  

54.

Calculate the Net Current Assets figure (1 mark)

(a)  

55.

Calculate the Long Term Loans figure (1 mark)

(a)  

56.

Calculate the Net Assets figure (1 mark)

(a)  

57.

What is the Net Current Asset figure? (1 mark)

(a)  

58.

What is the Net Assets Figure? (1 mark)

(a)  

59.

What is the Working Capital figure?(1 mark)

(a)  

60.

What is the Capital Employed figure? (1 mark)

(a)  

61.

What is the debtors figure? (1 mark)

(a)  

62.

What is the Capital Employed figure? (1 mark)

(a)  

63.

What is the total assets figure? (1 mark)

(a)  

64.

What is the net assets figure? (1 mark)

(a)  

65.

Share Capital £35 000

Retained Profit £15 200

Drawings ?

Capital Employed £42 200


What is the drawings figure? (1 mark)

(a)  

66.

How does a net loss affect capital employed?

a)

increases

b)

decreases

c)

no change

d)

indirectly

67.

What is capital employed?

a)

The value of the business after liabilities are subtracted from assets; the value of the owner's investment in the business plus any retained profit.

b)

What a company owes.

c)

Documents that are used to record and analyse the financial performance of a business.

d)

All income a company receives overtime.

68.
A mortgage is a:
a)
Current Asset
b)
Current Liability
c)
Non Current Asset
d)
Non Current Liability
69.
Which of the following is a non current asset?
a)
Building
b)
Accounts Payable
c)
Accounts Receivable
d)
Mortgage
70.

Which of these might appear on a statement of financial position (aka balance sheet)?

a)

Cost of sales

b)

Cash flow forecast

c)

Staff salaries

d)

Payables

71.

Which of these is a liability?

a)

Cash in bank

b)

Money owed to other businesses (payables)

c)

inventory

d)

Machinery

72.
Working Capital is:
a)
Assets - Liabilities
b)
Current Assets - Current Liabilities
c)
Fixed Assets - Long-term Liabilities
d)
None of the above
73.
Closing Inventory
a)
Assets
b)
Expenses
c)
Income
d)
Liabilities
74.

Bank

a)

Assets

b)

Expenses

c)

Capital/ equity

d)

Liabilities

75.

What is the Net Current Asset figure?

a)

£42 879

b)

£83 973

c)

£90 845

d)

£74 094

76.

What is the Net Assets Figure?

a)

£83 973

b)

£42 879

c)

£47 972

d)

£74 094

77.

What is the Working Capital figure?

a)

£83 973

b)

£42 879

c)

£47 972

d)

£74 094

78.

What is the Capital Employed figure?

a)

£83 973

b)

£42 879

c)

£47 972

d)

£74 094

79.

What is the Capital Employed figure?

a)

£765

b)

£11 235

c)

(£8315)

d)

(£2315)

80.

What is the working Capital figure for 2016?

a)

£1.5

b)

£1.5m

c)

£0.4m

d)

£1.2m

81.

What is the Capital Employed figure for 2016?

a)

£1.5

b)

£1.5m

c)

£0.4m

d)

£1.2m

82.
Identify the correct formula for NET CURRENT ASSETS
a)
Non current assets + current assets
b)
Current assets / current liabilities
c)
Current assets - current liabilities
d)
Current assets + current liabilities
83.

All Assets – All Liabilities is one formula for..........

a)

Net Assets

b)

Net Current Assets

c)

Working Capital

84.

Current Liabilities £12 000

Current Assets £4 000

Non Current liabilities £5 000

Non Current Assets £35 000


What is the working capital figure?

a)

£8 000

b)

(£8 000)

c)

£30 000

d)

£1 000

85.

Current Liabilities £12 000

Current Assets £4 000

Non Current liabilities £5 000

Non Current Assets £35 000


What is the Net Assets figure?

a)

(£22 000)

b)

£22 000

c)

£8 000

d)

(£8 000)

e)

£30 000

86.

What is the total assets figure?

a)

£18 500

b)

£3 500

c)

£15 000

d)

£1 850

87.

What is the net assets figure?

a)

£18 500

b)

£15 000

c)

£1 500

d)

£13 000

88.

Current Liabilities £14 000

Current Assets £5 000

Non Current liabilities £15 000

Non Current Assets £35 000


What is the working capital figure?

a)

(£9000)

b)

£9000

c)

£20 000

d)

£10 000

89.

Current Liabilities £14 000

Current Assets £5 000

Non Current liabilities £15 000

Non Current Assets £35 000


What is the net assets figure?

a)

£11 000

b)

(£11 000)

c)

£30 000

d)

£10 000

90.

Van £28 000 at cost

Depreciation of 20% using reducing balance method at end of year 1 is £5600.

What is NBV of van at end of year 2.

a)

£22,400

b)

£38,080

c)

£16,800

d)

£17920

91.

Opening capital £10 000

Profit for the year £12 720

Drawings £6 000


Capital Employed =…………….


What is the Capital Employed figure?

a)

£16 720

b)

£22 720

c)

£6 720

d)

None of these

92.

Which is the odd one out?

a)

VAT

b)

Trade payables

c)

Overdraft

d)

Mortgage

93.

Which is the odd one out?

a)

Other receivables

b)

Payables

c)

Current assets

d)

Trade Receivables

e)

Cash

94.

How often is depreciation recorded?

a)

Weekly

b)

Monthly

c)

Yearly

d)

Daily

95.

How is depreciation classified?

a)

As an asset

b)

As an expense

c)

As capital

d)

none of the above

96.

Find the amount of depreciation chargeable under the straight line method for the second year if amount for first year is ₹4,000

a)

₹4000

b)

4400

c)

8000

d)

7600

97.

Residual value of the asset means:

a)

The price paid on the purchase of asset

b)

The amount realised on the sale of asset

c)

The net amount expected to realise on final disposal of assets

d)

Reduced value of the asset every year

98.

What will be the amount of depreciation of plant & machinery for fifth year using straight line method when original cost of plant £100,000; Resale/residual value £40,000, Expected useful life 10 years?

a)

£60,000

b)

£90,000

c)

£70,000

d)

£30,000

99.

A machinery costing £50,000 (zero residual value) is depreciated @ 20% p.a. using straight line method. At the end of three years, the book value of the machinery will be :

a)

£ 35,000

b)

£25,000

c)

£20,000

d)

£30,000

100.

Only ___________ assets are depreciated.

a)

Non current (aka fixed)

b)

Current

c)

Short-term

d)

Intangible