WGU C213 PA & OA STUDY GUIDE #2
EXAM QUESTIONS WITH ACCURATE
RIGHT ANSWERS 2026 - 2027
Which of the following is the most correct definition of accounting? - Correct
Answer -A system for providing quantitative information, primarily financial in
nature, about economic entities that is intended to be useful in making economic
decisions
What is NOT typically true of accounting information? - Correct Answer -The
information relates to future time periods.
Which is NOT a key component of the definition of accounting? - Correct
Answer -Qualitative
What is true about the double-entry system of bookkeeping? - Correct Answer -
It was developed in the 1300s−1400s in Italy.
Businesses use accounting systems to? - Correct Answer -Analyze transactions;
Handle routine bookkeeping tasks; Evaluate performance and health of the
business.
What is not a function of accounting? - Correct Answer -Executing sales
transactions for organizations
What is NOT one of the three primary financial statements? - Correct Answer -
Statement of retained earnings
1
,Generally accepted accounting principles are? - Correct Answer -Developed by
accounting rule makers
The initials GAAP stand for? - Correct Answer -Generally Accepted
Accounting Principles
Which is NOT a service typically provided by large public accounting firms? -
Correct Answer -Making management decisions
The organization that develops worldwide accounting standards is the? -
Correct Answer -International Accounting Standards Board (IASB)
The initials CPA stand for? - Correct Answer -Certified Public Accountant
Which of the following financial statements reports a company's resources,
obligations, and owner's equity? - Correct Answer -Balance sheet
Which of the following financial statements reports the excess of a company's
revenues over its expenses? - Correct Answer -Income statement
Which of the following financial statements reports the amount of cash
collected and paid out by a company? - Correct Answer -Statement of cash
flows
The emphasis in financial accounting is on which of the following external user
groups? - Correct Answer -Investors and creditors
The primary internal group that uses accounting information is? - Correct
Answer -Management
Internal reports are generally used by? - Correct Answer -Management
2
, Which of the following is NOT an external user of financial information? -
Correct Answer -Management
Which of the following is NOT true of the Financial Accounting Standards
Board (FASB)? - Correct Answer -It is a government agency
Generally accepted accounting principles are? - Correct Answer -Developed by
accounting rule makers
The current standard-setting board for accounting in the private sector is the? -
Correct Answer -Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? - Correct Answer -
Securities and Exchange Commission (SEC)
Which of the following is NOT a service typically provided by large public
accounting firms? - Correct Answer -Making management decisions
The initials CPA stand for? - Correct Answer -Certified Public Accountant
Standards established by the International Accounting Standards Board are
referred to as? - Correct Answer -International Financial Accounting Standards
Which of the following is NOT a reason for the integration of worldwide
accounting standards? - Correct Answer -the theoretical necessity of a common
set of accounting standards
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress? - Correct Answer -Sarbanes-Oxley Act
3
EXAM QUESTIONS WITH ACCURATE
RIGHT ANSWERS 2026 - 2027
Which of the following is the most correct definition of accounting? - Correct
Answer -A system for providing quantitative information, primarily financial in
nature, about economic entities that is intended to be useful in making economic
decisions
What is NOT typically true of accounting information? - Correct Answer -The
information relates to future time periods.
Which is NOT a key component of the definition of accounting? - Correct
Answer -Qualitative
What is true about the double-entry system of bookkeeping? - Correct Answer -
It was developed in the 1300s−1400s in Italy.
Businesses use accounting systems to? - Correct Answer -Analyze transactions;
Handle routine bookkeeping tasks; Evaluate performance and health of the
business.
What is not a function of accounting? - Correct Answer -Executing sales
transactions for organizations
What is NOT one of the three primary financial statements? - Correct Answer -
Statement of retained earnings
1
,Generally accepted accounting principles are? - Correct Answer -Developed by
accounting rule makers
The initials GAAP stand for? - Correct Answer -Generally Accepted
Accounting Principles
Which is NOT a service typically provided by large public accounting firms? -
Correct Answer -Making management decisions
The organization that develops worldwide accounting standards is the? -
Correct Answer -International Accounting Standards Board (IASB)
The initials CPA stand for? - Correct Answer -Certified Public Accountant
Which of the following financial statements reports a company's resources,
obligations, and owner's equity? - Correct Answer -Balance sheet
Which of the following financial statements reports the excess of a company's
revenues over its expenses? - Correct Answer -Income statement
Which of the following financial statements reports the amount of cash
collected and paid out by a company? - Correct Answer -Statement of cash
flows
The emphasis in financial accounting is on which of the following external user
groups? - Correct Answer -Investors and creditors
The primary internal group that uses accounting information is? - Correct
Answer -Management
Internal reports are generally used by? - Correct Answer -Management
2
, Which of the following is NOT an external user of financial information? -
Correct Answer -Management
Which of the following is NOT true of the Financial Accounting Standards
Board (FASB)? - Correct Answer -It is a government agency
Generally accepted accounting principles are? - Correct Answer -Developed by
accounting rule makers
The current standard-setting board for accounting in the private sector is the? -
Correct Answer -Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? - Correct Answer -
Securities and Exchange Commission (SEC)
Which of the following is NOT a service typically provided by large public
accounting firms? - Correct Answer -Making management decisions
The initials CPA stand for? - Correct Answer -Certified Public Accountant
Standards established by the International Accounting Standards Board are
referred to as? - Correct Answer -International Financial Accounting Standards
Which of the following is NOT a reason for the integration of worldwide
accounting standards? - Correct Answer -the theoretical necessity of a common
set of accounting standards
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress? - Correct Answer -Sarbanes-Oxley Act
3
