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Chapter 2: Financial Statements

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

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

a)

Bookeeper

b)

Profit

c)

Revenue

d)

Expenses

2.

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

a)

Bookeeper

b)

Profit

c)

Revenue

d)

Expenses

3.

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

4.

The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies.

a)

Statement of Financial Position

b)

Statement of the Comprehensive Income

c)

Statements of Cash Flow

d)

Cost of Goods Sold

5.

Money owed to a company by its clients or customers who have promised to pay for products at a later date.

a)

Current Assets

b)

Account Receivable

c)

Current Liabilities

d)

Account Payable

6.

The amount a company owes to suppliers for goods and services purchased with credit.

a)

Current Assets

b)

Account Receivable

c)

Current Liabilities

d)

Account Payable

7.

A firm’s financial obligations to short-term creditors, which must be repaid within one year.

a)

Current Assets

b)

Current Liabilities

c)

Accounts Receivable

d)

Accounts Payable

8.

The financial statement that reports the assets, liabilities, and shareholders equity at a specific date is the:

a)

Balance sheet

b)

Income Statement

c)

Trial Balance

d)

General Ledger

9.

Cash at bank is an example of a

a)

Current asset

b)

Non-current asset

c)

Equity

10.

A balance sheet shows:

a)

how much gross profit it has

b)

how much net profit it has

c)

how much a business owns and owes

11.

Identify the three sections of a Balance Sheet

a)

Revenue

b)

Assets

c)

Equity

d)

Expenses

e)

Liabilities

12.

What is the equation to calculate Gross profit?

a)

Sales revenue + Income - Expenses

b)

(Sales revenue - Sales returns) - Cost of sales

c)

(Sales revenue + Cost of sales) - Sales returns

d)

(Sales revenue + Sales returns) - Cost of sales