10th Grade Accounting Fundamentals Practice: Questions, Answers and Tips

Looking for 10th grade accounting fundamentals practice? Below are worked examples, the mistakes students make most, and practice questions with an answer key.

Every example below comes from BAMS Academy's Accounting Fundamentals practice, the same questions students answer on the site.

Accounting Fundamentals in 10th grade, skill by skill

Journal entries, trial balances, and financial statement basics. BAMS Academy breaks the unit into the skills below (part of all 10th grade math topics). Each comes with one of its practice questions.

Core accounting calculations: depreciation, gross profit margin, net income

A business has net sales of $2572 and cost of goods sold of $1389. What is the gross profit margin, as a percent of net sales, to the nearest hundredth of a percent?

Answer: 46. Gross profit margin = (Net sales − COGS) ÷ Net sales × 100 = ($2572 − $1389) ÷ $2572 × 100 = 46.00%.

Beginning inventory is $32715, purchases during the period are $48504, and ending inventory is $8720. What is the cost of goods sold?

Answer: 72499. COGS = beginning inventory + purchases − ending inventory = 32715 + 48504 − 8720 = $72,499.

A business has net sales of $1615 and cost of goods sold of $727. What is the gross profit margin, as a percent of net sales, to the nearest hundredth of a percent?

Answer: 54.98. Gross profit margin = (Net sales − COGS) ÷ Net sales × 100 = ($1615 − $727) ÷ $1615 × 100 = 54.98%.

Worked examples

Example 1

Question: A business reports total assets of $58449 and total liabilities of $54491. What is owner's equity?

How to solve it: The accounting equation is Assets = Liabilities + Owner's Equity, so Equity = Assets − Liabilities = 58449 − 54491 = $3,958.

Answer: 3958

Example 2

Question: A trial balance shows total debits of $50445 and total credits of $50289. By how much is it out of balance?

How to solve it: A trial balance must have equal debits and credits. The difference is 50445 − 50289 = $156, so it is out of balance by that amount.

Answer: 156

Try these practice questions

1. Beginning inventory is $55564, purchases during the period are $20296, and ending inventory is $32227. What is the cost of goods sold?

2. Current assets are $51288 and current liabilities are $37196. What is the current ratio, to the nearest hundredth?

3. Beginning inventory is $77775, purchases during the period are $20819, and ending inventory is $38388. What is the cost of goods sold?

4. A trial balance shows total debits of $109011 and total credits of $108889. By how much is it out of balance?

5. Current assets are $130217 and current liabilities are $49908. What is the current ratio, to the nearest hundredth?

6. A business reports total assets of $165367 and total liabilities of $107542. What is owner's equity?

Answer key

1. 43633 — COGS = beginning inventory + purchases − ending inventory = 55564 + 20296 − 32227 = $43,633.
2. 1.38 — Current ratio = current assets ÷ current liabilities = 51288 ÷ 37196 = 1.38.
3. 60206 — COGS = beginning inventory + purchases − ending inventory = 77775 + 20819 − 38388 = $60,206.
4. 122 — A trial balance must have equal debits and credits. The difference is 109011 − 108889 = $122, so it is out of balance by that amount.
5. 2.61 — Current ratio = current assets ÷ current liabilities = 130217 ÷ 49908 = 2.61.
6. 57825 — The accounting equation is Assets = Liabilities + Owner's Equity, so Equity = Assets − Liabilities = 165367 − 107542 = $57,825.

Keep practicing

The fastest way to build confidence is a few questions at a time, with feedback on each answer. Start with Accounting Fundamentals practice for grade 10, where every question comes with a step-by-step explanation.

More from BAMS Academy:

• All 10th grade math topics
• Geometry practice
• Algebra I practice
• BAMS Academy math practice by grade
• Every 10th grade subject