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Financial Statements

Total questions: 30

Worksheet time: 15mins

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.

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

5.

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

6.

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

7.

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

8.

Identify the three sections of a Balance Sheet

a)

Revenue

b)

Assets

c)

Equity

d)

Expenses

e)

Liabilities

9.

The language of business

(a)  

10.

properties owned by the company, regarded as having value and available to meet debts, commitments, or legacies

(a)  

11.

these are what the companies owe and the obligations to its creditors and stakeholders

(a)  

12.

this statement reflects the financial performance of the company for a specific period time

(a)  

13.

The heading is the same on all three financial statements.

a)

true

b)

false

14.

At the beginning of the accounting period, Frank’s Supply Company had a capital balance of $210,050.  During the period, the owner invested $10,500 additional capital, and did not take any withdrawals.  The period showed a net loss of $24,850.  What was the ending capital for the period?  

a)

$196,150

b)

$195,700

c)

$224,400

d)

$229,550

15.

The purpose of the Income Statement is to report....

a)

all assets, liabilities, and owner's equity at a specified time

b)

all of accounts used in journalizing a business's transactions

c)

balance in the capital accounts in order to determine the net income or loss

d)

the net income or loss for a fiscal period

16.

Profit margin (%) =

a)

(Gross profit / Net sales revenue) x 100

b)

(Profit for the year / Net sales revenue) x 100

c)

(Profit for the year / Cost of sales) x 100

d)

(Gross profit / Cost of sales) x 100

17.
A comparison between two numbers showing how many times one number exceeds the other.
a)
return on investment
b)
profitability ratios
c)
ratio
d)
efficiency ratios
18.

= (Net Profit after tax / Net Sales) x 100. This is the formula to calculate which Profitability ratio, for a public company?

a)

Gross Profit

b)

Net Profit

c)

Return on Total Assets

d)

Return on ordinary shareholder's equity

19.
If total expenses exceed total revenue, a net loss is reported
a)
True
b)
False
20.

Examples may include salaries, utilities, rent, insurance, and office supplies.

a)

Revenue

b)

Expenses

c)

Net Income

d)

Net Loss

21.

Any owner's equity increase

a)

debit

b)

credit

22.

All of the following statements are correct, except for?

a)

Increases in assets and expenses are debited

b)

Decreases in assets and expenses are credited

c)

Increases in liabilities and owner's equity are debited

d)

Decreases in revenues are debited

23.

Debit or credit? Cash increases

a)

Cash is an asset, so it should be debited

b)

Cash is an asset, so it should be credited

c)

Cash is a liability, so it should be debited

d)

Cash is a liability, so it should be credited

24.

Identify the correct accounts affected given the following transaction: Purchased supplies on credit (on account) from Supplies World

a)

Purchases and bank

b)

Supplies and bank

c)

Purchases and accounts receivable - supplies world

d)

Supplies and accounts payable - supplies world

25.

Identify the correct transaction given the following general journal entry: debit supplies $400; credit accounts payable OKC Ltd $400

a)

Purchased equipment from OKC Ltd $400 cash

b)

Sold supplies $400 cash

c)

Received a loan from OKC Ltd $400

d)

Purchased supplies from OKC Ltd $400 on credit

26.

Identify the correct transaction given the following general journal entry: debit bank $800; credit service fees $800

a)

Performed services for cash $800

b)

Sold goods for cash $800

c)

Performed services for GSW Ltd on credit $800

d)

Received $800 from accounts receivable

27.

If the capital of a business is ₹ 5,00,000 and outside liabilities are ₹200,000. Calculate total assets of the business.

a)

3,00,000

b)

7,00,000

c)

10,00,000

d)

2,50,000

28.

Assets increase on the ________ side?

a)

subsidiary

b)

T-account

c)

credit

d)

debit

29.
The difference between total revenue and total expenses when total revenue is greater.
a)
net income
b)
net loss
c)
adjustments
d)
fiscal period
30.
The difference between total revenue and total expenses when total expenses is greater.
a)
net loss
b)
net income
c)
adjustments
d)
trial balance