AGBU 2389 AG FINANCE EXAM 3 ACTUAL
EXAM PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
⩥ 7 Steps of the Decision Making Process. Answer: 1. Identify and
analyze issue/goal
2. Identify alternative solutions
3. Collect data/information
4. Select best alternative
5. Implement chosen course of action
6. Monitor results to stay effective
7. Accept respon
⩥ Management Capacity. Answer: Ability to make and improve
decisions over time both efficiently and rapidly
⩥ 5 Decision Characteristics. Answer: 1. Importance
2. Frequency
3. Imminence
4. Revocability
5. Alternatives
, ⩥ Decision Making Environment. Answer: Taxes & policies,
technology, energy issues, structure options, biological processes
⩥ Purpose & Use of Records. Answer: Measure profit and financial
condition, obtaining loans, measure profits, & taxes
⩥ Liability. Answer: Debt or other financial obligation that must be paid
in the future
Ex: loans
⩥ Owner Equity. Answer: Difference between business assets and
liabilities
⩥ Profit. Answer: Revenue minus expenses minus opportunity costs
⩥ Expense. Answer: Cost or expenditure incurred in the production of
revenue
⩥ Account Payable. Answer: Expense that has been incurred but has not
yet been paid
Ex: feed store bill, 30-90 days to pay
⩥ Accrued Expense. Answer: Expense that accumulates daily but not yet
paid
EXAM PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
⩥ 7 Steps of the Decision Making Process. Answer: 1. Identify and
analyze issue/goal
2. Identify alternative solutions
3. Collect data/information
4. Select best alternative
5. Implement chosen course of action
6. Monitor results to stay effective
7. Accept respon
⩥ Management Capacity. Answer: Ability to make and improve
decisions over time both efficiently and rapidly
⩥ 5 Decision Characteristics. Answer: 1. Importance
2. Frequency
3. Imminence
4. Revocability
5. Alternatives
, ⩥ Decision Making Environment. Answer: Taxes & policies,
technology, energy issues, structure options, biological processes
⩥ Purpose & Use of Records. Answer: Measure profit and financial
condition, obtaining loans, measure profits, & taxes
⩥ Liability. Answer: Debt or other financial obligation that must be paid
in the future
Ex: loans
⩥ Owner Equity. Answer: Difference between business assets and
liabilities
⩥ Profit. Answer: Revenue minus expenses minus opportunity costs
⩥ Expense. Answer: Cost or expenditure incurred in the production of
revenue
⩥ Account Payable. Answer: Expense that has been incurred but has not
yet been paid
Ex: feed store bill, 30-90 days to pay
⩥ Accrued Expense. Answer: Expense that accumulates daily but not yet
paid
