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1. FA -Elements of Financial statements

Total questions: 36

Worksheet time: 18mins

Name
Class
Date
1.

Which account is classified as an income?

a)

Cash

b)

cell phone bill

c)

credit card

d)

babysitting payment received

2.

Which account is classified as an Income?

a)

Auto Loan

b)

college Fund

c)

Bank Account

d)

Sales

3.

Which account is classified as an Expense?

a)

Auto Loan

b)

college Fund

c)

Bank Account

d)

Cell phone bill

4.

Which account is classified as an Expense?

a)

Salary

b)

machine

c)

Bank Account

d)

Cash

5.

Which account is classified as an Asset?

a)

Concert Tickets

b)

Babysitting payment

c)

Allowance

d)

Cash

6.

Which account is classified as an Asset?

a)

Concert Tickets

b)

Bank Account

c)

Allowance

d)

Bus Pass

7.

Which account is classified as an Liability?

a)

Concert Tickets

b)

Bank Account

c)

Bank Overdraft

d)

Bus Pass

8.

Which account is classified as an Liability?

a)

Concert Tickets

b)

Bank Account

c)

Allowance

d)

Auto Loan

9.

Would you prefer a credit card with?

a)

A higher interest rate

b)

A lower interest rate

10.

Would you prefer a Savings Account with?

a)

A higher interest rate

b)

A lower interest rate

11.

What is the accounting equation used in the Statement of Financial Position?

a)

Total assets = Total Income + Equity

b)

Total assets = Total Loan + Equity

c)

Total assets = Total liabilities + Equity

d)

Total assets = Total Liabilities - Equity

12.
The main source of revenue for a trading business
a)
Sales
b)
Dividends
c)
Fees received
d)
Capital
13.
Decrease in revenue of a trading business
a)
Sales returns
b)
Purchase returns
c)
Bad debts
d)
Drawings
14.
Stock at the beginning of the year
a)
Opening Inventory
b)
Sales
c)
Purchases
d)
Drawings
15.
Goods purchased during the year
a)
Sales
b)
Inventory
c)
Purchases
16.
Goods returned to suppliers that decrease Cost of goods sold
a)
Sales returns
b)
Credit purchases
c)
Purchase returns
17.

All of the following are assets, except for?

a)

Goodwill

b)

Patents

c)

Loans to other businesses

d)

Loans from other businesses

18.

If the assets are financed by 70% of equity, how much assets that have been financed using liabilities?

a)

30%

b)

20%

c)

10%

d)

50%

19.

Who are the primary users of financial statements according to the accounting standards?

a)

Existing and potential investors

b)

Existing and potential creditors

c)

Employees, government and non-government agencies

d)

Investors, creditors and parties that act for the interest of primary users.

20.

This is what the business owns.

a)

Assets

b)

Liablities

c)

Loans

d)

Owner's Equity

21.

This is what the business owes.

a)

Assets

b)

Liabilities

c)

Loans

d)

Owner's Equity

22.

Following are accounts under _________________.

•Cash and cash equivalents

•Trade and other receivables

•Inventories

•Biological assets

•Investments

•Financial assets

•Investment property

•Property, plant, and equipment

a)

Assets

b)

Liabilities

c)

Owner's Equity

23.

Following are accounts under________.

•Trade and other payable

•Provision

•Financial liabilities

•Liabilities for taxes

a)

Assets

b)

Liabilities

c)

Owner's Equity

24.

The costs incurred in the day-to-day operations of an organization.

a)

Bookeeper

b)

Profit

c)

Revenue

d)

Expenses

25.

The total amount of money received from the sale of goods or services.

a)

Bookeeper

b)

Profit

c)

Revenue

d)

Expenses

26.

The difference between what it costs to make and sell a product and what a customer pays for it.

a)

Bookeeper

b)

Profit

c)

Revenue

d)

Expenses

27.

Which of the following are items of Expenses?

a)

salaries, utilities, inventory, discount allowed

b)

salaries, utilities, insurance, discount allowed

c)

salaries, utilities, interest received, discount allowed

d)

salaries, utilities, loan, discount allowed

28.

What is the difference between non-current assets and current assets?

a)

NCA provide benefits that are used within one financial period but CA provide benefits that last beyond one financial period

b)

NCA provide benefits that last beyond one financial period but CA provide benefits that are used within one financial period

c)

NCA are easily converted to cash but CA are not easily converted to cash easily

d)

NCA are not loans but CA are loans

29.

When revenue > expenses, then there is a

a)

Net Loss

b)

mistake in the math

c)

Net Income

d)

transposition error

30.

All of the following are assets, except for?

a)

Goodwill

b)

Patents

c)

Loans to other businesses

d)

Loans from other businesses

31.
Stock at the beginning of the year
a)
Opening Inventory
b)
Sales
c)
Purchases
d)
Drawings
32.

Cash at bank is an example of a

a)

Current asset

b)

Non-current asset

c)

Equity

33.
Examples may include salaries, utilities, rent, insurance, and office supplies.
a)
Revenue
b)
Expense
c)
Net Income
d)
Net Loss
34.
What are assets?
a)
What a company owns; anything of value owned by a business.
b)
Costs of operating a business.
c)
Detailed plans for the financial needs of individuals, families, and businesses.
d)
Differences between actual and budgeted performance.  
35.
What are liabilities?
a)
The money paid to employees.
b)
Costs of operating a business.
c)
The act of buy items. 
d)
What a company owes.
36.

Two examples of intangible assets are:

a)

Trademarks and Patents

b)

b. Inventory and Trademarks

c)

b. Patents and Cash