PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING 2026 ACTUAL TEST PAPER
QUESTIONS SOLUTIONS VERIFIED COMPLETE
STUDY PACKAGE
◉ steps of decision making.
Answer: identify issue
gather information
identify alternatives
select option that most likely results in desired objective
◉ accounting.
Answer: analysis of events
record and report financial effects of business activities
◉ where does capital come from (3).
Answer: investors
creditors(lenders)
business itself (from earnings retained)
◉ 2 main types of accounting.
,Answer: financial and managerial
◉ managerial accounting.
Answer: gather and analysis of information for internal use and
decision making.
◉ financial accounting.
Answer: gather, report, analysis of information for external users-
investors and creditors. summary of a business
◉ what does managerial accounting review.
Answer: product cost, breakeven analysis, budgeting, performance
analysis, outsource production
◉ what does financial accounting review.
Answer: credit analysis, financial health, estimate value of the
company
◉ examples of external financial reports for financial accounting.
Answer: annual report, financial statement, balance sheet, income
statement, statement of cash flow
◉ balance sheet.
,Answer: reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
◉ income statement.
Answer: how much did you ,ake
period of time - from nov to jan
◉ statement of cash flow.
Answer: where did the cash come from and where did the cash go
period of time - from nov to jan
◉ lender.
Answer: lends money with intend to get it back plus interest. need
current income, existing obligations, existing assets, payroll stub, tax
return, monthly payments, bank stmts
◉ investor.
Answer: buys into your company. looks at if the business is
profitable, what they are buying, buying obligations, potential future
projections
◉ what forms will the manager of a business use.
Answer: both financial and managerial
, ◉ fasb- what does it stand for, who are they and what do they do.
Answer: financial accounting standards board
private group, not govt agency, no legal authority, conducted of
people from a variety of business related backgrounds.
establishes financial accounting and reporting standards for private
sector companies
1 of the two boards that make up GAAP
◉ gasb- what does it stand for, who are they, what do they do.
Answer: governmental accounting standards board
sets accounting and financial reporting standards for state and legal
governments.
authority over financial reporting by government entities
1 of the two boards that make up GAAP
◉ gaap.
Answer: generally accepted accounting principles
◉ sec.
Answer: Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair
information about publicly traded companies.
ACCOUNTING 2026 ACTUAL TEST PAPER
QUESTIONS SOLUTIONS VERIFIED COMPLETE
STUDY PACKAGE
◉ steps of decision making.
Answer: identify issue
gather information
identify alternatives
select option that most likely results in desired objective
◉ accounting.
Answer: analysis of events
record and report financial effects of business activities
◉ where does capital come from (3).
Answer: investors
creditors(lenders)
business itself (from earnings retained)
◉ 2 main types of accounting.
,Answer: financial and managerial
◉ managerial accounting.
Answer: gather and analysis of information for internal use and
decision making.
◉ financial accounting.
Answer: gather, report, analysis of information for external users-
investors and creditors. summary of a business
◉ what does managerial accounting review.
Answer: product cost, breakeven analysis, budgeting, performance
analysis, outsource production
◉ what does financial accounting review.
Answer: credit analysis, financial health, estimate value of the
company
◉ examples of external financial reports for financial accounting.
Answer: annual report, financial statement, balance sheet, income
statement, statement of cash flow
◉ balance sheet.
,Answer: reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
◉ income statement.
Answer: how much did you ,ake
period of time - from nov to jan
◉ statement of cash flow.
Answer: where did the cash come from and where did the cash go
period of time - from nov to jan
◉ lender.
Answer: lends money with intend to get it back plus interest. need
current income, existing obligations, existing assets, payroll stub, tax
return, monthly payments, bank stmts
◉ investor.
Answer: buys into your company. looks at if the business is
profitable, what they are buying, buying obligations, potential future
projections
◉ what forms will the manager of a business use.
Answer: both financial and managerial
, ◉ fasb- what does it stand for, who are they and what do they do.
Answer: financial accounting standards board
private group, not govt agency, no legal authority, conducted of
people from a variety of business related backgrounds.
establishes financial accounting and reporting standards for private
sector companies
1 of the two boards that make up GAAP
◉ gasb- what does it stand for, who are they, what do they do.
Answer: governmental accounting standards board
sets accounting and financial reporting standards for state and legal
governments.
authority over financial reporting by government entities
1 of the two boards that make up GAAP
◉ gaap.
Answer: generally accepted accounting principles
◉ sec.
Answer: Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair
information about publicly traded companies.
