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Basic Financial Statement

Total questions: 37

Worksheet time: 23mins

Name
Class
Date
1.

Which of the following is a non-current asset?

a)

Trade Receivable

b)

Trade Payable

c)

Bank

d)

Plant and machinery

2.

Which of the following is a current asset?

a)

Inventory

b)

Land

c)

Plant and machinery

d)

Building

3.

Asset is presented in

a)

Statement of profit or loss

b)

Statement of financial position

c)

Statement of changes in equity

d)

Statement of cash flow

4.

Expenses are listed in

a)

Statement of profit or loss

b)

Statement of financial position

c)

Statement of changes in equity

d)

Statement of cash flow

5.

Which of the following is an expense

a)

Revenue

b)

Salaries

c)

Salaries payable

d)

Payable

6.

The following account usually has a debit balance

a)

Asset

b)

Revenue

c)

Liability

d)

Capital

7.

The following account usually has a credit balance

a)

Asset

b)

Expenses

c)

Drawings

d)

Capital

8.

A debit balance means the total amount in the debit side of an account is greater than the credit side

a)

True

b)

False

9.

A credit balance means the amount in the debit side is lesser than the credit side

a)

True

b)

False

10.

Someone who owes us money in respect of trading is best known as

a)

Receivables

b)

Payables

c)

Creditors

d)

Owner

11.

Someone who we owe money is known as

a)

Receivable

b)

Debtor

c)

Payable

d)

Owner

12.

Which of the following would be a credit balance in the trial balance?

a)

Bank overdraft

b)

Drawings

c)

Purchases

d)

Delivery outwards

13.

Capital is best explained as

a)

something that we owe

b)

something that we own

c)

something that the business owe us

14.

Asset is simpy described as

a)

something that we own

b)

something that we owe

c)

something that owe us

15.

Which of the following is a non-current liability?

a)

Loan from bank payable in 5 years

b)

Loan from bank payable in 5 months

c)

Trade payables

d)

Bank overdraft

16.

Asset is presented in

a)

Statement of profit or loss

b)

Statement of financial position

c)

Statement of changes in equity

d)

Statement of cash flow

17.

Expenses are listed in

a)

Statement of profit or loss

b)

Statement of financial position

c)

Statement of changes in equity

d)

Statement of cash flow

18.

Which of the following is an expense

a)

Revenue

b)

Salaries

c)

Salaries payable

d)

Payable

19.

Capital is best explained as

a)

something that we owe

b)

something that we own

c)

something that the business owe us

20.

Asset is simpy described as

a)

something that we own

b)

something that we owe

c)

something that owe us

21.

Which of the following is a non-current liability?

a)

Loan from bank payable in 5 years

b)

Loan from bank payable in 5 months

c)

Trade payables

d)

Bank overdraft

22.

Which of the basic financial statements is best used to answer the question, "How profitable is the business?"

a)

Balance sheet

b)

Statement of shareholder's equity

c)

Income statement

d)

Accounts receivable aging schedule

23.

Which of the basic financial statements is best used to answer the questions "What does the company own and how is it financed?"

a)

Balance sheet

b)

Statement of shareholder's equity

c)

Income statement

d)

Cash flow statement

24.

Which of the basic financial statements is best used to answer the questions "Where did the company's money come from and how was it spent over the preceding year?"

a)

Balance sheet

b)

Statement of shareholder's equity

c)

Income statement

d)

Cash flow statement

25.

On the income statement, sales revenue, minus cost of goods sold and operating expenses, equals which of the following?

a)

Net profit

b)

Retained earnings

c)

Net income available to preferred shareholders

d)

Earning Before Interest and Tax

26.

Your firm has the following income statement items:

Sales of RM50,250

Cost of goods sold of RM35,025

Operating expenses of RM10,115

Interest expense of RM750; and

Income tax of RM1,744

What is the amount of the firm's EBIT?

a)

RM15,552

b)

RM58,000

c)

RM5,110

d)

RM4,630

27.

Which of the following is not a current asset?

a)

Accounts payable

b)

Marketable securities

c)

Accounts receivable

d)

Inventory

28.

Your firm has the following balance sheet statement items:

Total current liabilities of RM805,000;

Total assets of RM2,655,000

Fixed and other assets of RM1,770,000; and

Long-term debt of RM200,000.

What is the amount of the firm's total current assets?

a)

RM885,000

b)

RM1,550,000

c)

RM600,000

d)

RM325,000

29.

What is a financial report that summarizes the revenues and expenses of a business?

a)

Income Statement

b)

Balance Sheet

c)

Cash Flow

d)

Statement of Retained Earnings

30.

Which of the following is not a use of financial statements?

a)

It helps assess the financial status and performance of a company.

b)

It is a source of information for stakeholders to make wise decisions.

c)

It essentially reflects the present financial status of a company.

d)

The companies use these statements for policy-making.

31.

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

a)

Bookeeper

b)

Profit

c)

Revenue

d)

Expenses

32.

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

a)

Bookeeper

b)

Profit

c)

Revenue

d)

Expenses

33.

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

34.

A financial report that shows an organization’s profitability over a period of time – month, quarter, or year.

a)

Statement of Financial Position

b)

Statement of the Comprehensive Income

c)

Statements of Cash Flow

d)

Cost of Goods Sold

35.

A “snapshot” of an organization’s financial position at a given time.

a)

Statement of Financial Position

b)

Statement of the Comprehensive Income

c)

Statements of Cash Flow

d)

Cost of Goods Sold

36.

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

37.

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