MANAGERIAL ACCOUNTING EXAM SCRIPT
2026 QUESTIONS WITH SOLUTIONS GRADED
A+
◉ investing activity; inflow and outflow. Answer: inflow selling
buildings, selling land
outflow buying buildings and land
◉ financial activity; inflow and outflow. Answer: inflow borrowing $,
receiving investments from owners
outflow repaying loan, dividends,
◉ cash inflow. Answer: receiving cash investments form owners,
cash from bank when borrowing $, cash from customers, cash from
sale of old machines, buildings, etc
◉ cash outflow. Answer: paying to buy new machines, buildings,
paying employee wages, suppliers for inventory purchases, interst
on loans, principal on loans, dividends
◉ stmt of retained earnings. Answer: accumulated profit and loss
since business started. links income stmt and balance sheet together.
from one accounting period to the next.
,beg. retained earnings + net income for period - dividends paid
during
◉ what does sec do. Answer: monitors securities market and
financial disclosures
◉ form 10k, what is it, where is it found, how often. Answer: annual
filing, tells what the business does and products and services
sold/offered, risk of company,
properties owned, legal proceedings, mngmt discussion fo how
company is doing and future outlook, financial stmts,
file w/i 60 days of fiscal year
sec website
◉ form 10q. Answer: quarterly unaudited financial reports covering
the most current quarter
filed quarterly
◉ cik- what does it stand for and what is it. Answer: central index
key
unique indentifying number for each company in sec EDGAR system
, ◉ when looking at a balance sheet, what is used for property,
current market value or original market value. Answer: original
market value
◉ current vs long term format. Answer: current typically = within a
year
long term typically = more than a year
◉ what is a classified balance sheet. Answer: list everything by
current and long term. current is listed first then long term
◉ liquid. Answer: cash available now
◉ illiquid. Answer: cash not easily available
◉ current assets. Answer: cash, expected to be converted w/i a yar
◉ long term assets. Answer: property and equipment
◉ current liabilities. Answer: obligations to be satisfied
◉ long term liabilities. Answer: mortgage
2026 QUESTIONS WITH SOLUTIONS GRADED
A+
◉ investing activity; inflow and outflow. Answer: inflow selling
buildings, selling land
outflow buying buildings and land
◉ financial activity; inflow and outflow. Answer: inflow borrowing $,
receiving investments from owners
outflow repaying loan, dividends,
◉ cash inflow. Answer: receiving cash investments form owners,
cash from bank when borrowing $, cash from customers, cash from
sale of old machines, buildings, etc
◉ cash outflow. Answer: paying to buy new machines, buildings,
paying employee wages, suppliers for inventory purchases, interst
on loans, principal on loans, dividends
◉ stmt of retained earnings. Answer: accumulated profit and loss
since business started. links income stmt and balance sheet together.
from one accounting period to the next.
,beg. retained earnings + net income for period - dividends paid
during
◉ what does sec do. Answer: monitors securities market and
financial disclosures
◉ form 10k, what is it, where is it found, how often. Answer: annual
filing, tells what the business does and products and services
sold/offered, risk of company,
properties owned, legal proceedings, mngmt discussion fo how
company is doing and future outlook, financial stmts,
file w/i 60 days of fiscal year
sec website
◉ form 10q. Answer: quarterly unaudited financial reports covering
the most current quarter
filed quarterly
◉ cik- what does it stand for and what is it. Answer: central index
key
unique indentifying number for each company in sec EDGAR system
, ◉ when looking at a balance sheet, what is used for property,
current market value or original market value. Answer: original
market value
◉ current vs long term format. Answer: current typically = within a
year
long term typically = more than a year
◉ what is a classified balance sheet. Answer: list everything by
current and long term. current is listed first then long term
◉ liquid. Answer: cash available now
◉ illiquid. Answer: cash not easily available
◉ current assets. Answer: cash, expected to be converted w/i a yar
◉ long term assets. Answer: property and equipment
◉ current liabilities. Answer: obligations to be satisfied
◉ long term liabilities. Answer: mortgage
