WGU D216 Business Law for Accountants |OA|
Objective Assessment | 207 Actual Questions and
Answers Latest Updated 2026/2027 Graded A+)
free pdf download
Which statement describes cyberlaw?
It is a formal legal term.
It is a new type of law.
It governs transactions conducted via email.
It modifies traditional laws in relation to the online environment.
It modifies traditional laws in relation to the online environment
Which statement accurately describes common law?
It is a body of law established by court decisions.
A buyer enters a contract to buy a new house. The seller breaches the
agreement after the buyer made a deposit. The seller offers to return the
deposit, but the buyer wants to buy the house.
Which type of remedy will this buyer seek?
Equitable
What happens when a state law is in conflict with a federal law?
The federal law displaces state law.
When confirming accounts receivable balances during an audit, the
accountant realized that several of the accounts were fictitious. The
accountant asked the company's chief financial officer (CFO) to remove
those accounts, but he insisted on keeping them in the balance sheet. One
morning, the CFO called the accountant and ended the audit client
,relationship over the phone, before the audit was even completed. Months
later, the accountant received a call from the CPA firm asking about why
the relationship with the company had ended.
What should this accountant tell the CPA firm about the audit client
relationship with the company?
That the CFO refused to remove the fictitious account
A public company has established sound internal controls. The internal
audit department is always on the lookout for fraud, collusion, and the
possibility of management override of controls.
Which behavior may contribute to unethical behavior among employees?
Performance bonuses are solely based on products sold.
A manufacturing company is deeply concerned about its new expansion.
While it is true that its main operations are located in a poor country,
where it is the biggest employer, this new expansion will generate more
pollutants. The CEO has advised continuing the expansion because it will
create more jobs than it will generate pollutants.
Which doctrine is this CEO's analysis approaching?
The doctrine that maximizes benefits and minimizes harm.
The accounting department needs to decide on how to classify some
transactions but due to their nature, the literature appears to be in conflict.
Besides the classification issue, there are some ethical implications as
well. The controller is researching how to approach a situation like this
from an ethical standpoint.
What is a framework used to help in the decision-making process?
Systematic approach
The accounts receivable manager of a manufacturing company loves to
travel and is planning a once-in-a-lifetime trip to a beach. The accounts
receivable manager usually receives a performance bonus at year-end and
,is planning on using the money to pay for the trip. The accounts
receivable manager thought it would be a good idea to extend terms to the
customers without asking for approval. This would improve the metrics in
the evaluation. Thanks to the extended terms, the accounts receivable
manager received a nice bonus and was able to go on the trip.
Were the accounts receivable manager's actions ethical?
No, because the manager manipulated policy to improve performance.
A public company's CEO and CFO certified the 10-K pursuant to the
Sarbanes-Oxley Act of 2002 (SOX). However, only the CEO certified the
public company's 10-Q.
Has this public company complied with SOX?
No, because the CFO did not certify the quarterly filing.
What happens when a state law is in conflict with a federal law?
The federal law displaces state law.
When deciding a case, which source of law are judges most likely to take
into consideration?
Stare decisis
What describes the content of the Code of Federal Regulations?
Codification of the general rules and regulations adopted by administrative
agencies
A buyer enters a contract to buy a new house. The seller breaches the
agreement after the buyer made a deposit. The buyer now wants the
deposit back.
Which type of remedy will this buyer seek?
Legal
An internal auditor is concerned with the results of performance reviews.
The internal auditor believes this is happening because the company has
, not adopted a written code of conduct. The chief audit executive (CAE)
differs and believes that the reason for this is that the company does not
hold employees accountable for their actions.
Does this CAE's expressions have merit?
Yes, because an important part of leadership setting the tone is holding
employees accountable for their actions.
The CEO received an organization's credit card meant to be used for
emergency purposes only. The controller of the organization is
responsible for approving the credit card expenses.
While paying the monthly bills, the controller realized a credit card bill was
for $4,595.95. This was highly unusual especially because expenditures of
$3,000.00 or more require the board of directors' approval. The controller
went to the CEO office to ask about this expense and noticed that all
furniture was replaced with brand new furniture of similar quality. The CEO
told the controller that the charge was for a miscellaneous office expense
and that he should just approve it as an emergency expenditure. The
controller felt angry, as he knew that some of the projects would be
downsizing next quarter due to the lack of funding.
Should this controller approve the CEO's expenditure?
No, because the CEO abused her powers and tried to convince the controller of
doing the same.
A local corporation is the major employer of a city. Thousands of local
families depend on the local corporation's jobs. While defining strategies
for the next quarter, a tax lawyer advised the local corporation about a tax
haven location across the country. Eager to save money, the local
corporation decided to close all plants within a month and moved
operations to tax haven location. Employees were told that they could
always move to the new location.
Are this corporation's actions ethical?
No, because the reason to move operations was to save money.
Objective Assessment | 207 Actual Questions and
Answers Latest Updated 2026/2027 Graded A+)
free pdf download
Which statement describes cyberlaw?
It is a formal legal term.
It is a new type of law.
It governs transactions conducted via email.
It modifies traditional laws in relation to the online environment.
It modifies traditional laws in relation to the online environment
Which statement accurately describes common law?
It is a body of law established by court decisions.
A buyer enters a contract to buy a new house. The seller breaches the
agreement after the buyer made a deposit. The seller offers to return the
deposit, but the buyer wants to buy the house.
Which type of remedy will this buyer seek?
Equitable
What happens when a state law is in conflict with a federal law?
The federal law displaces state law.
When confirming accounts receivable balances during an audit, the
accountant realized that several of the accounts were fictitious. The
accountant asked the company's chief financial officer (CFO) to remove
those accounts, but he insisted on keeping them in the balance sheet. One
morning, the CFO called the accountant and ended the audit client
,relationship over the phone, before the audit was even completed. Months
later, the accountant received a call from the CPA firm asking about why
the relationship with the company had ended.
What should this accountant tell the CPA firm about the audit client
relationship with the company?
That the CFO refused to remove the fictitious account
A public company has established sound internal controls. The internal
audit department is always on the lookout for fraud, collusion, and the
possibility of management override of controls.
Which behavior may contribute to unethical behavior among employees?
Performance bonuses are solely based on products sold.
A manufacturing company is deeply concerned about its new expansion.
While it is true that its main operations are located in a poor country,
where it is the biggest employer, this new expansion will generate more
pollutants. The CEO has advised continuing the expansion because it will
create more jobs than it will generate pollutants.
Which doctrine is this CEO's analysis approaching?
The doctrine that maximizes benefits and minimizes harm.
The accounting department needs to decide on how to classify some
transactions but due to their nature, the literature appears to be in conflict.
Besides the classification issue, there are some ethical implications as
well. The controller is researching how to approach a situation like this
from an ethical standpoint.
What is a framework used to help in the decision-making process?
Systematic approach
The accounts receivable manager of a manufacturing company loves to
travel and is planning a once-in-a-lifetime trip to a beach. The accounts
receivable manager usually receives a performance bonus at year-end and
,is planning on using the money to pay for the trip. The accounts
receivable manager thought it would be a good idea to extend terms to the
customers without asking for approval. This would improve the metrics in
the evaluation. Thanks to the extended terms, the accounts receivable
manager received a nice bonus and was able to go on the trip.
Were the accounts receivable manager's actions ethical?
No, because the manager manipulated policy to improve performance.
A public company's CEO and CFO certified the 10-K pursuant to the
Sarbanes-Oxley Act of 2002 (SOX). However, only the CEO certified the
public company's 10-Q.
Has this public company complied with SOX?
No, because the CFO did not certify the quarterly filing.
What happens when a state law is in conflict with a federal law?
The federal law displaces state law.
When deciding a case, which source of law are judges most likely to take
into consideration?
Stare decisis
What describes the content of the Code of Federal Regulations?
Codification of the general rules and regulations adopted by administrative
agencies
A buyer enters a contract to buy a new house. The seller breaches the
agreement after the buyer made a deposit. The buyer now wants the
deposit back.
Which type of remedy will this buyer seek?
Legal
An internal auditor is concerned with the results of performance reviews.
The internal auditor believes this is happening because the company has
, not adopted a written code of conduct. The chief audit executive (CAE)
differs and believes that the reason for this is that the company does not
hold employees accountable for their actions.
Does this CAE's expressions have merit?
Yes, because an important part of leadership setting the tone is holding
employees accountable for their actions.
The CEO received an organization's credit card meant to be used for
emergency purposes only. The controller of the organization is
responsible for approving the credit card expenses.
While paying the monthly bills, the controller realized a credit card bill was
for $4,595.95. This was highly unusual especially because expenditures of
$3,000.00 or more require the board of directors' approval. The controller
went to the CEO office to ask about this expense and noticed that all
furniture was replaced with brand new furniture of similar quality. The CEO
told the controller that the charge was for a miscellaneous office expense
and that he should just approve it as an emergency expenditure. The
controller felt angry, as he knew that some of the projects would be
downsizing next quarter due to the lack of funding.
Should this controller approve the CEO's expenditure?
No, because the CEO abused her powers and tried to convince the controller of
doing the same.
A local corporation is the major employer of a city. Thousands of local
families depend on the local corporation's jobs. While defining strategies
for the next quarter, a tax lawyer advised the local corporation about a tax
haven location across the country. Eager to save money, the local
corporation decided to close all plants within a month and moved
operations to tax haven location. Employees were told that they could
always move to the new location.
Are this corporation's actions ethical?
No, because the reason to move operations was to save money.
