FINANCIAL ACCOUNTING FOR MANAGERS BY
DAVID SPICELAND EXAM SCRIPT 2026
COMPREHENSIVE QUESTIONS SOLUTIONS
GRADED A PLUS COST ANALYSIS STUDY
PACKAGE
◉ What is the primary internal group that uses accounting
information?
Answer: Management
◉ Who generally uses internal reports?
Answer: Management
◉ Which of the following is NOT an external user of financial
information?
Answer: Management
◉ Which of the following is NOT true of the Financial Accounting
Standards Board (FASB)?
Answer: It is a government agency
,◉ Generally accepted accounting principles are developed by
whom?
Answer: Accounting rule makers
◉ What do the initials GAAP stand for?
Answer: Generally Accepted Accounting Principles
◉ What is the current standard-setting board for accounting in the
private sector?
Answer: Financial Accounting Standards Board (FASB)
◉ Which of the following is NOT a service typically provided by large
public accounting firms?
Answer: Making management decisions
◉ Which agency stipulates the rules and regulations for tax
collection in the U.S.?
Answer: Internal Revenue Service
◉ What do the initials CPA stand for?
Answer: Certified Public Accountant
,◉ Which organization has the authority to establish accounting
standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
◉ Which organization develops worldwide accounting standards?
Answer: International Accounting Standards Board (IASB)
◉ What are standards established by the International Accounting
Standards Board referred to as?
Answer: International Financial Reporting Standards
◉ What is NOT a reason for the integration of worldwide accounting
standards?
Answer: The theoretical necessity of a common set of accounting
standards
◉ Is the International Accounting Standards Board (IASB) charged
with developing worldwide accounting practices?
Answer: True
◉ Are investors outside a company allowed access to a company's
internal database of financial information?
Answer: False
, ◉ What act increased federal oversight of the audit process?
Answer: Sarbanes-Oxley Act
◉ What are the three primary financial statements?
Answer: Balance sheet, income statement, statement of cash flows
◉ What does the balance sheet report?
Answer: A company's assets, liabilities, and owners' equity
◉ What does the income statement report?
Answer: The amount of net income earned by a company during a
period
◉ What does the statement of cash flows report?
Answer: The amount of cash collected and paid out by a company
◉ Who are among the users of financial accounting information?
Answer: Lenders, investors, company management, suppliers,
customers, employees, competitors, government agencies,
politicians, and the press
DAVID SPICELAND EXAM SCRIPT 2026
COMPREHENSIVE QUESTIONS SOLUTIONS
GRADED A PLUS COST ANALYSIS STUDY
PACKAGE
◉ What is the primary internal group that uses accounting
information?
Answer: Management
◉ Who generally uses internal reports?
Answer: Management
◉ Which of the following is NOT an external user of financial
information?
Answer: Management
◉ Which of the following is NOT true of the Financial Accounting
Standards Board (FASB)?
Answer: It is a government agency
,◉ Generally accepted accounting principles are developed by
whom?
Answer: Accounting rule makers
◉ What do the initials GAAP stand for?
Answer: Generally Accepted Accounting Principles
◉ What is the current standard-setting board for accounting in the
private sector?
Answer: Financial Accounting Standards Board (FASB)
◉ Which of the following is NOT a service typically provided by large
public accounting firms?
Answer: Making management decisions
◉ Which agency stipulates the rules and regulations for tax
collection in the U.S.?
Answer: Internal Revenue Service
◉ What do the initials CPA stand for?
Answer: Certified Public Accountant
,◉ Which organization has the authority to establish accounting
standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
◉ Which organization develops worldwide accounting standards?
Answer: International Accounting Standards Board (IASB)
◉ What are standards established by the International Accounting
Standards Board referred to as?
Answer: International Financial Reporting Standards
◉ What is NOT a reason for the integration of worldwide accounting
standards?
Answer: The theoretical necessity of a common set of accounting
standards
◉ Is the International Accounting Standards Board (IASB) charged
with developing worldwide accounting practices?
Answer: True
◉ Are investors outside a company allowed access to a company's
internal database of financial information?
Answer: False
, ◉ What act increased federal oversight of the audit process?
Answer: Sarbanes-Oxley Act
◉ What are the three primary financial statements?
Answer: Balance sheet, income statement, statement of cash flows
◉ What does the balance sheet report?
Answer: A company's assets, liabilities, and owners' equity
◉ What does the income statement report?
Answer: The amount of net income earned by a company during a
period
◉ What does the statement of cash flows report?
Answer: The amount of cash collected and paid out by a company
◉ Who are among the users of financial accounting information?
Answer: Lenders, investors, company management, suppliers,
customers, employees, competitors, government agencies,
politicians, and the press
