afm exam review questions & answers
2023/2024
undercapitalization - ANSWER-most common ways for businesses to fail
accounting - ANSWER-recording, classifying, summarizing and interpreting transaction to provide
management and stakeholders with the information needed
financial events - ANSWER-buying supplies, paying employees, receiving a loan, selling product or service
and paying expenses
internal stakeholders - ANSWER-marketing, operations and human resource management staff (type of
stakeholder)
external stakeholders - ANSWER-investors, creditors, suppliers, government (type of stakeholder)
3 steps of processing - ANSWER-recording, classifying, summarized
accounting documents - ANSWER-inputs
financial statements - ANSWER-outputs
accounting disciplines - ANSWER-Managerial Accounting, Financial Accounting, Auditing, Tax Accounting
and consulting/advisory services
managerial accounting - ANSWER-internal, daily/weekly/monthly reports, buy vs lease (accounting
discipline)
, financial accounting - ANSWER-external, quarterly/annual reports, lending and investing (accounting
discipline)
auditing - ANSWER-compliance: lenders, creditors, investors, government, management (accounting
discipline)
Tax accounting - ANSWER-government management, charge and collect taxes, maintain tax status
(accounting discipline)
consulting/advisory services - ANSWER-opinions, recommendations, hiring, solve problems (accounting
discipline)
government accounting - ANSWER-public sector financial standards and sharing information with
taxpayers
not-for-profit accounting - ANSWER-making financial information available to donors (ie. Charities)
private accountant - ANSWER-work for 1 firm, government agency or non-profit organization
public accountant - ANSWER-provides services for individuals and businesses on a fee basis (compliance
and consulting)
bookkeeping - ANSWER-recording and classifying, focus on inputs and processing
OE = assets - liabilities - ANSWER-fundamental accounting equation
generally accepted accounting principles - ANSWER-GAAP
balance sheet - ANSWER-assets and liability at. point in time
income statement - ANSWER-revenue and expenses for a period of time
2023/2024
undercapitalization - ANSWER-most common ways for businesses to fail
accounting - ANSWER-recording, classifying, summarizing and interpreting transaction to provide
management and stakeholders with the information needed
financial events - ANSWER-buying supplies, paying employees, receiving a loan, selling product or service
and paying expenses
internal stakeholders - ANSWER-marketing, operations and human resource management staff (type of
stakeholder)
external stakeholders - ANSWER-investors, creditors, suppliers, government (type of stakeholder)
3 steps of processing - ANSWER-recording, classifying, summarized
accounting documents - ANSWER-inputs
financial statements - ANSWER-outputs
accounting disciplines - ANSWER-Managerial Accounting, Financial Accounting, Auditing, Tax Accounting
and consulting/advisory services
managerial accounting - ANSWER-internal, daily/weekly/monthly reports, buy vs lease (accounting
discipline)
, financial accounting - ANSWER-external, quarterly/annual reports, lending and investing (accounting
discipline)
auditing - ANSWER-compliance: lenders, creditors, investors, government, management (accounting
discipline)
Tax accounting - ANSWER-government management, charge and collect taxes, maintain tax status
(accounting discipline)
consulting/advisory services - ANSWER-opinions, recommendations, hiring, solve problems (accounting
discipline)
government accounting - ANSWER-public sector financial standards and sharing information with
taxpayers
not-for-profit accounting - ANSWER-making financial information available to donors (ie. Charities)
private accountant - ANSWER-work for 1 firm, government agency or non-profit organization
public accountant - ANSWER-provides services for individuals and businesses on a fee basis (compliance
and consulting)
bookkeeping - ANSWER-recording and classifying, focus on inputs and processing
OE = assets - liabilities - ANSWER-fundamental accounting equation
generally accepted accounting principles - ANSWER-GAAP
balance sheet - ANSWER-assets and liability at. point in time
income statement - ANSWER-revenue and expenses for a period of time
