PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING 2026 FINAL PAPER REVIEW
QUESTIONS ANSWERS BUNDLED PRACTICE
COLLECTION
◉ iasb.
Answer: International Accounting Standards Board
develop international accounting standards. made up of members
from many countries
◉ aicpa.
Answer: american institute of certified public accountants
administers the cpa exam.
enforces professional sanction by taking away cpa license when
acted unethically.
◉ role and purpose of accounting.
Answer: accumulate and report on financial information about
performance, financial position, cash flow of a business. used to
reach decisions about how to manage the business, invest in it, or
lend money to it
,◉ what is a balance sheet.
Answer: statement of what they have and how they financed it at a
specific point in time.
◉ balance sheet equation.
Answer: assets = liabilities + owners equity
◉ what are assets and examples.
Answer: what they own or control that will provide probable future
benefits
cash, accts receivable, inventory, buildings, land.
◉ what are liabilities and examples.
Answer: what we owe. obligations that require future sacrifice.
phone bill, car loan, accts payable, fed and state govt tax, mortgage,
unearned revenue
◉ what is owners equity and examples.
Answer: owners share, stockholders equity, how much owner
originally invested in business + how much profit they have left
capital stock- amt given by shareholders to obtain shares of
stock(capital=$ so money from stocks)
retained earnings- earnings retained in business, ex= net income
,◉ do dividends increase or decrease owners equity.
Answer: decrease
◉ does investments by owners increase or decrease owners equity.
Answer: increase
◉ what is an income stmt.
Answer: analyzes economic performance for a specific period of
time. statement of income. revenues, expenses, liabilities.
◉ equation for net income.
Answer: net income= revenues - expenses
◉ does revenues increase or decrease net assets.
Answer: increase
◉ does expenses increase or decrease net assets.
Answer: decrease
◉ what is revenue.
Answer: amount of assets created from sale.
, products, membership, software, hardware, etc
◉ what are expenses.
Answer: amount of assets consumed in generating revenues.
wages, utilities, wholesale cost
◉ if revenue exceeds expenses what happens.
Answer: you get net income
◉ if revenue is less than expenses paid, what happens.
Answer: net loss
◉ how to find net income or net loss.
Answer: revenue- expenses= if + net income, if - net loss
◉ gross profit and loss.
Answer: difference between sales and cost of good sold. retail price-
wholesale cost to buy.
sales- cost of goods
◉ operating income and equation.
Answer: day to day basis
ACCOUNTING 2026 FINAL PAPER REVIEW
QUESTIONS ANSWERS BUNDLED PRACTICE
COLLECTION
◉ iasb.
Answer: International Accounting Standards Board
develop international accounting standards. made up of members
from many countries
◉ aicpa.
Answer: american institute of certified public accountants
administers the cpa exam.
enforces professional sanction by taking away cpa license when
acted unethically.
◉ role and purpose of accounting.
Answer: accumulate and report on financial information about
performance, financial position, cash flow of a business. used to
reach decisions about how to manage the business, invest in it, or
lend money to it
,◉ what is a balance sheet.
Answer: statement of what they have and how they financed it at a
specific point in time.
◉ balance sheet equation.
Answer: assets = liabilities + owners equity
◉ what are assets and examples.
Answer: what they own or control that will provide probable future
benefits
cash, accts receivable, inventory, buildings, land.
◉ what are liabilities and examples.
Answer: what we owe. obligations that require future sacrifice.
phone bill, car loan, accts payable, fed and state govt tax, mortgage,
unearned revenue
◉ what is owners equity and examples.
Answer: owners share, stockholders equity, how much owner
originally invested in business + how much profit they have left
capital stock- amt given by shareholders to obtain shares of
stock(capital=$ so money from stocks)
retained earnings- earnings retained in business, ex= net income
,◉ do dividends increase or decrease owners equity.
Answer: decrease
◉ does investments by owners increase or decrease owners equity.
Answer: increase
◉ what is an income stmt.
Answer: analyzes economic performance for a specific period of
time. statement of income. revenues, expenses, liabilities.
◉ equation for net income.
Answer: net income= revenues - expenses
◉ does revenues increase or decrease net assets.
Answer: increase
◉ does expenses increase or decrease net assets.
Answer: decrease
◉ what is revenue.
Answer: amount of assets created from sale.
, products, membership, software, hardware, etc
◉ what are expenses.
Answer: amount of assets consumed in generating revenues.
wages, utilities, wholesale cost
◉ if revenue exceeds expenses what happens.
Answer: you get net income
◉ if revenue is less than expenses paid, what happens.
Answer: net loss
◉ how to find net income or net loss.
Answer: revenue- expenses= if + net income, if - net loss
◉ gross profit and loss.
Answer: difference between sales and cost of good sold. retail price-
wholesale cost to buy.
sales- cost of goods
◉ operating income and equation.
Answer: day to day basis
