FINANCIAL ACCOUNTING FOR MANAGERS BY
DAVID SPICELAND EXAM PREP 2026 SOLVED
QUESTIONS ANSWERS GRADED A PLUS
BUSINESS DECISION MAKING HANDBOOK
◉ What is an account in accounting?
Answer: A detailed record of all increases and decreases that have
occurred in an account during a specified period.
◉ What does 'Assets' include?
Answer: Cash, Accounts Receivable, Notes Receivable, Prepaid
Expenses, Land, Buildings, and Equipment.
◉ What is Accounts Receivable?
Answer: A customer's promise to pay in the future for services or
goods sold.
◉ What is Notes Receivable?
Answer: A written promise that a customer will pay a fixed amount
of money and interest by a certain date.
◉ What are Prepaid Expenses?
,Answer: Payments of expenses in advance, considered assets
because they provide future benefits.
◉ What are Liabilities?
Answer: Obligations of the business to pay debts in the future.
◉ What is Accounts Payable?
Answer: A promise made by the business to pay a debt in the future,
arising from a credit purchase.
◉ What is Notes Payable?
Answer: A written promise made by the business to pay a debt,
usually involving interest, in the future.
◉ What is Accrued Liability?
Answer: An amount owed but not paid, such as Taxes Payable or
Salaries Payable.
◉ What is Unearned Revenue?
Answer: Cash received from a customer for services not yet
provided.
◉ What does Equity represent?
, Answer: The net contributions of stockholders in the business.
◉ What are Dividends?
Answer: Distributions of cash or other assets to stockholders, which
decrease equity.
◉ What are Revenues?
Answer: Earnings from delivering goods or services to customers,
which increase equity.
◉ What are Expenses?
Answer: Costs incurred in selling goods or services, which decrease
equity.
◉ What is a Chart of Accounts?
Answer: An organized list of a company's accounts.
◉ What is Double-Entry Accounting?
Answer: A system that records the dual effects of each transaction,
involving at least two accounts.
◉ What is a T-account?
DAVID SPICELAND EXAM PREP 2026 SOLVED
QUESTIONS ANSWERS GRADED A PLUS
BUSINESS DECISION MAKING HANDBOOK
◉ What is an account in accounting?
Answer: A detailed record of all increases and decreases that have
occurred in an account during a specified period.
◉ What does 'Assets' include?
Answer: Cash, Accounts Receivable, Notes Receivable, Prepaid
Expenses, Land, Buildings, and Equipment.
◉ What is Accounts Receivable?
Answer: A customer's promise to pay in the future for services or
goods sold.
◉ What is Notes Receivable?
Answer: A written promise that a customer will pay a fixed amount
of money and interest by a certain date.
◉ What are Prepaid Expenses?
,Answer: Payments of expenses in advance, considered assets
because they provide future benefits.
◉ What are Liabilities?
Answer: Obligations of the business to pay debts in the future.
◉ What is Accounts Payable?
Answer: A promise made by the business to pay a debt in the future,
arising from a credit purchase.
◉ What is Notes Payable?
Answer: A written promise made by the business to pay a debt,
usually involving interest, in the future.
◉ What is Accrued Liability?
Answer: An amount owed but not paid, such as Taxes Payable or
Salaries Payable.
◉ What is Unearned Revenue?
Answer: Cash received from a customer for services not yet
provided.
◉ What does Equity represent?
, Answer: The net contributions of stockholders in the business.
◉ What are Dividends?
Answer: Distributions of cash or other assets to stockholders, which
decrease equity.
◉ What are Revenues?
Answer: Earnings from delivering goods or services to customers,
which increase equity.
◉ What are Expenses?
Answer: Costs incurred in selling goods or services, which decrease
equity.
◉ What is a Chart of Accounts?
Answer: An organized list of a company's accounts.
◉ What is Double-Entry Accounting?
Answer: A system that records the dual effects of each transaction,
involving at least two accounts.
◉ What is a T-account?
