Finance and accounting aptitude: guide and free practice

Finance aptitude practice combines numerical reasoning with careful interpretation of revenue, cost, margin, cash movements and reconciliations.

Identify the quantity before the formula

Revenue, profit and cash are different measures. An invoice can contribute revenue under a stated accounting assumption without cash being received that day. Our exercises explicitly state the timing or use simple cash balances so that the answer does not depend on an unstated accounting policy.

Margin versus markup

For a product costing $80 and selling for $100, profit is $20. Margin uses selling revenue as the denominator: 20%. Markup uses cost: 25%. Write the denominator before entering a calculator result.

Reconcile movements

Opening balance plus receipts minus payments gives closing cash in a simplified cash exercise. For a reconciliation, distinguish a missing payment from a duplicated entry. Adding an unexplained adjustment merely to make balances match hides the cause.

Rates, periods and units

Check whether a budget is monthly or annual and whether a variance is expressed as money or a percentage. Keep consistent sign conventions and label adverse versus favourable only after considering whether the figure is a cost or a revenue. The ten original exercises below teach numerical skills; they do not provide investment, tax or accounting-compliance advice.

Your first practice session

Use only the stated simplified financial assumptions. A calculator is allowed. Figures are hypothetical and do not describe tax or investment rules.

Try 10 questions with explanations

Worked examples

  1. 1. Revenue is $45,000 and total costs are $36,000 for the same period. What is profit margin as a percentage of revenue?
    1. 15%
    2. 20%
    3. 25%
    4. 80%

    Reference: q-54d40e60-118 · Report this question

    Show answer and solution

    Answer: B. 20%

    Profit is $45,000 minus the total costs of $36,000, or $9,000. Divide by $45,000 revenue to obtain 20%.
  2. 2. A product costs $64 and has a 25% markup on cost. What is its selling price?
    1. $76
    2. $80
    3. $85.33
    4. $89

    Reference: q-724c5eaf-77 · Report this question

    Show answer and solution

    Answer: B. $80

    Markup is 0.25 times 64 = $16. Selling price is $80.
  3. 3. Opening cash is $8,400, receipts are $5,600 and payments are $7,250. What is closing cash?
    1. $5,750
    2. $6,750
    3. $7,750
    4. $14,000

    Reference: q-4452fbfb-91 · Report this question

    Show answer and solution

    Answer: B. $6,750

    8,400 plus 5,600 minus 7,250 = $6,750.

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About this practice

These are independently written teaching questions. A practice score helps you review your answers; it is not a validated hiring prediction or an official employer score.