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Worksheets

Accounting Computations

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Calculate the depreciation expense for an asset with a cost of $10,000, salvage value of $1,000, and a useful life of 5 years using the straight-line method.

a)

$1,800 per year

b)

$1,200 per year

c)

$1,500 per year

d)

$2,000 per year

2.

Determine the ending balance of accounts receivable if the beginning balance was $20,000, credit sales were $5,000, and cash collections were $3,000.

a)

$25,000

b)

$22,000

c)

$4,000

d)

$18,000

3.

Compute the net income for a company with revenues of $50,000, expenses of $30,000, and taxes of $5,000.

a)

$15,000

b)

$25,000

c)

$20,000

d)

$10,000

4.

Find the total assets of a company with liabilities of $20,000 and owner's equity of $30,000.

a)

$50,000

b)

$10,000

c)

$40,000

d)

$25,000

5.

Calculate the inventory turnover ratio if the cost of goods sold is $50,000 and average inventory is $10,000.

a)

10

b)

5

c)

2

d)

7

6.

Determine the current ratio for a company with current assets of $40,000 and current liabilities of $20,000.

a)

0.5

b)

3

c)

2

d)

1.5

7.

Compute the earnings per share (EPS) for a company with a net income of $100,000 and 50,000 outstanding shares.

a)

$3.50

b)

$1.50

c)

$2

d)

$4

8.

Find the return on assets (ROA) for a company with net income of $50,000 and total assets of $200,000.

a)

0.35 or 35%

b)

0.50 or 50%

c)

0.15 or 15%

d)

0.25 or 25%

9.

Calculate the payback period for an investment with an initial cost of $10,000 and annual cash flows of $2,000.

a)

5 years

b)

3 years

c)

7 years

d)

10 years

10.

Determine the present value of $5,000 to be received in 3 years at a discount rate of 8%.

a)

$4,800.00

b)

$4,500.00

c)

$4,115.25

d)

$5,200.00