36 exam-style questions on Final accounts — topic 3.4 of Finance and accounts in the IB Business Management syllabus — with answers and explanations. Samples below; the full set is free with an account.
In a statement of profit or loss, sales revenue is 200 000 and cost of goods sold is 120 000. Calculate the gross profit.
Answer: 80 000
Gross profit = sales revenue − cost of goods sold = 200 000 − 120 000 = 80 000.
Gross profit is 90 000 and expenses (overheads) are 55 000. Calculate the profit before interest and tax.
Answer: 35 000
Profit before interest and tax = gross profit − expenses = 90 000 − 55 000 = 35 000.
In a statement of financial position, which of the following is classified as a current asset?
Answer: Trade receivables
Trade receivables are expected to convert to cash within one year, making them a current asset; machinery is non-current, and loans and retained earnings are liabilities/equity.
A firm's opening inventory is 12 000, purchases are 70 000 and closing inventory is 18 000. Calculate the cost of goods sold.
Answer: 64 000
Cost of goods sold = opening inventory + purchases − closing inventory = 12 000 + 70 000 − 18 000 = 64 000.
Total assets are 500 000 and total liabilities are 320 000. Determine the value of equity (shareholders' funds).
Answer: 180 000
From the accounting equation, equity = total assets − total liabilities = 500 000 − 320 000 = 180 000.
A delivery van costs 40 000, has an expected useful life of 5 years and a residual value of 10 000. Using the straight-line method, calculate the annual depreciation.
Answer: 6 000
Straight-line depreciation = (cost − residual value) ÷ useful life = (40 000 − 10 000) ÷ 5 = 6 000 per year.
That was 6 of 36 Final accounts questions.
Practise all 36 freeDistinguishAO2 · 4–6 marks
Make the difference clear for BOTH terms — a definition of one of them is only half an answer.
ExplainAO2 · 4–6 marks
Give reasons or causes: say what happens AND why, linking each step with 'because' or 'so that'.
36 Final accounts questions — free with an account. Spaced repetition, streaks and full exam simulations included.
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