WGU D196 Exam Questions Correctly
|\ |\ |\ |\ |\
Answered New Update |\ |\
Accounting plays a vital role in the decision-making |\ |\ |\ |\ |\ |\ |\ |\
process. Which action is the first step in the decision-
|\ |\ |\ |\ |\ |\ |\ |\ |\
making process? - CORRECT ANSWERS ✔✔Identify the
|\ |\ |\ |\ |\ |\ |\
issue.
1/1
|\ |\
The money that a company needs to buy its land, pay its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
employees, and buy its supplies is called capital. What |\ |\ |\ |\ |\ |\ |\ |\ |\
are the potential sources of capital for a business? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Investors, creditors, and retained
|\ |\ |\ |\ |\ |\
business earnings |\
Investors, creditors, and retained business earnings are
|\ |\ |\ |\ |\ |\ |\
all common sources of capital for a business.
|\ |\ |\ |\ |\ |\ |\
Which primary area of accounting generates reports for
|\ |\ |\ |\ |\ |\ |\ |\
internal users? - CORRECT ANSWERS ✔✔Management
|\ |\ |\ |\ |\ |\
accounting generates reports for internal users, such as |\ |\ |\ |\ |\ |\ |\ |\
budgets and cost analyses. |\ |\ |\
Which group uses financial information to evaluate
|\ |\ |\ |\ |\ |\ |\
whether a company will be able to repay a loan? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Lenders |\ |\
,Which of the primary financial statements reports the
|\ |\ |\ |\ |\ |\ |\ |\
resources, obligations, and owner's equity of a company?
|\ |\ |\ |\ |\ |\ |\
- CORRECT ANSWERS ✔✔The balance sheet reports the
|\ |\ |\ |\ |\ |\ |\ |\ |\
resources of a company (the assets), the company's
|\ |\ |\ |\ |\ |\ |\ |\
obligations (the liabilities), and the owners' equity, which
|\ |\ |\ |\ |\ |\ |\ |\
represents the difference between what is owned (assets)
|\ |\ |\ |\ |\ |\ |\
and what is owed (liabilities).
|\ |\ |\ |\ |\
What is the role of the IASB in regulating accounting
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
standards? - CORRECT ANSWERS ✔✔Establish |\ |\ |\ |\ |\
international accounting standards |\ |\
The IASB establishes worldwide accounting standards.
|\ |\ |\ |\ |\ |\
The IASB is a private organization based in London.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Currently, the IASB does not have legal authority to set
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
accounting standards for U.S. companies, although the |\ |\ |\ |\ |\ |\ |\
SEC does allow the use of IASB standards for non-U.S.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
companies with shares traded on U.S. stock exchanges. |\ |\ |\ |\ |\ |\ |\ |\
The IASB is a standalone organization (overseen by a
|\ |\ |\ |\ |\ |\ |\ |\ |\
Board of Trustees); it is not under the jurisdiction of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
SEC, the European Union, the United Nations, or any
|\ |\ |\ |\ |\ |\ |\ |\ |\
other governmental body. The IASB members represent a
|\ |\ |\ |\ |\ |\ |\ |\
broad business constituency including auditors, corporate
|\ |\ |\ |\ |\
accountants, analysts, and even accounting professors.
|\ |\ |\ |\ |\ |\
What group of people make up the FASB? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔People from a variety of business-related
|\ |\ |\ |\ |\ |\ |\
backgrounds
,What is the role of the GASB in setting accounting
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
standards? - CORRECT ANSWERS ✔✔The GASB is a |\ |\ |\ |\ |\ |\ |\ |\
private-sector organization that establishes accounting |\ |\ |\ |\ |\
and financial reporting standards for U.S. state and local
|\ |\ |\ |\ |\ |\ |\ |\ |\
governments.
In what way do accountants have an economic incentive
|\ |\ |\ |\ |\ |\ |\ |\ |\
to conduct themselves ethically? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔The value of the information produced by accountants
|\ |\ |\ |\ |\ |\ |\ |\
is related to the confidence that users have in the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reliability of that information. |\ |\ |\
How is it possible for an accountant to intentionally
|\ |\ |\ |\ |\ |\ |\ |\ |\
deceive financial statement users and yet still technically
|\ |\ |\ |\ |\ |\ |\ |\
be in compliance with generally accepted accounting
|\ |\ |\ |\ |\ |\ |\
principles (GAAP)? - CORRECT ANSWERS ✔✔There is |\ |\ |\ |\ |\ |\ |\
flexibility inherent in the assumptions underlying the |\ |\ |\ |\ |\ |\ |\
preparation of financial statements. |\ |\ |\
Your boss approaches you with a concerning letter from
|\ |\ |\ |\ |\ |\ |\ |\ |\
the IRS and asks you to explain the role of the IRS in
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
regulating accounting standards. Based on the role of the |\ |\ |\ |\ |\ |\ |\ |\ |\
IRS, what could be the problem detailed in the letter? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔The company has not filed its |\ |\ |\ |\ |\ |\ |\ |\
taxes in accordance with the law.
|\ |\ |\ |\ |\
, Anika is considering investing in a tech company that is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
known for developing smart home appliances. Before
|\ |\ |\ |\ |\ |\ |\
investing, Anika first wants to ensure that the company's |\ |\ |\ |\ |\ |\ |\ |\ |\
past financial performance has been satisfactory and that
|\ |\ |\ |\ |\ |\ |\
the company manages its cash flows well. What type of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
accounting information would provide this evidence for |\ |\ |\ |\ |\ |\ |\
Anika? - CORRECT ANSWERS ✔✔Financial reports
|\ |\ |\ |\ |\
Alliah Company just released its public accounting data
|\ |\ |\ |\ |\ |\ |\ |\
for 20X9. Which user of accounting information will
|\ |\ |\ |\ |\ |\ |\ |\
monitor this data to ensure that the company is providing
|\ |\ |\ |\ |\ |\ |\ |\ |\
sufficient information for investors? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔Government agencies
|\ |\
A new product line manager approaches the accounting
|\ |\ |\ |\ |\ |\ |\ |\
department in order to understand the past performance |\ |\ |\ |\ |\ |\ |\ |\
of the product line he has been asked to manage in the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
future. Which role of accounting involves obtaining and
|\ |\ |\ |\ |\ |\ |\ |\
using financial information to determine the financial
|\ |\ |\ |\ |\ |\ |\
health and performance of a business or product line? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Evaluation |\ |\
You read in the newspaper that a local company you are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
familiar with has been found guilty in court of publishing
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
financial statements that are false and misleading to|\ |\ |\ |\ |\ |\ |\ |\
users of those financial statements. In this situation, what
|\ |\ |\ |\ |\ |\ |\ |\
could the American Institute of Certified Public
|\ |\ |\ |\ |\ |\ |\ |\
Accountants (AICPA) do in response to the accountants |\ |\ |\ |\ |\ |\ |\ |\
|\ |\ |\ |\ |\
Answered New Update |\ |\
Accounting plays a vital role in the decision-making |\ |\ |\ |\ |\ |\ |\ |\
process. Which action is the first step in the decision-
|\ |\ |\ |\ |\ |\ |\ |\ |\
making process? - CORRECT ANSWERS ✔✔Identify the
|\ |\ |\ |\ |\ |\ |\
issue.
1/1
|\ |\
The money that a company needs to buy its land, pay its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
employees, and buy its supplies is called capital. What |\ |\ |\ |\ |\ |\ |\ |\ |\
are the potential sources of capital for a business? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Investors, creditors, and retained
|\ |\ |\ |\ |\ |\
business earnings |\
Investors, creditors, and retained business earnings are
|\ |\ |\ |\ |\ |\ |\
all common sources of capital for a business.
|\ |\ |\ |\ |\ |\ |\
Which primary area of accounting generates reports for
|\ |\ |\ |\ |\ |\ |\ |\
internal users? - CORRECT ANSWERS ✔✔Management
|\ |\ |\ |\ |\ |\
accounting generates reports for internal users, such as |\ |\ |\ |\ |\ |\ |\ |\
budgets and cost analyses. |\ |\ |\
Which group uses financial information to evaluate
|\ |\ |\ |\ |\ |\ |\
whether a company will be able to repay a loan? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Lenders |\ |\
,Which of the primary financial statements reports the
|\ |\ |\ |\ |\ |\ |\ |\
resources, obligations, and owner's equity of a company?
|\ |\ |\ |\ |\ |\ |\
- CORRECT ANSWERS ✔✔The balance sheet reports the
|\ |\ |\ |\ |\ |\ |\ |\ |\
resources of a company (the assets), the company's
|\ |\ |\ |\ |\ |\ |\ |\
obligations (the liabilities), and the owners' equity, which
|\ |\ |\ |\ |\ |\ |\ |\
represents the difference between what is owned (assets)
|\ |\ |\ |\ |\ |\ |\
and what is owed (liabilities).
|\ |\ |\ |\ |\
What is the role of the IASB in regulating accounting
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
standards? - CORRECT ANSWERS ✔✔Establish |\ |\ |\ |\ |\
international accounting standards |\ |\
The IASB establishes worldwide accounting standards.
|\ |\ |\ |\ |\ |\
The IASB is a private organization based in London.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Currently, the IASB does not have legal authority to set
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
accounting standards for U.S. companies, although the |\ |\ |\ |\ |\ |\ |\
SEC does allow the use of IASB standards for non-U.S.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
companies with shares traded on U.S. stock exchanges. |\ |\ |\ |\ |\ |\ |\ |\
The IASB is a standalone organization (overseen by a
|\ |\ |\ |\ |\ |\ |\ |\ |\
Board of Trustees); it is not under the jurisdiction of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
SEC, the European Union, the United Nations, or any
|\ |\ |\ |\ |\ |\ |\ |\ |\
other governmental body. The IASB members represent a
|\ |\ |\ |\ |\ |\ |\ |\
broad business constituency including auditors, corporate
|\ |\ |\ |\ |\
accountants, analysts, and even accounting professors.
|\ |\ |\ |\ |\ |\
What group of people make up the FASB? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔People from a variety of business-related
|\ |\ |\ |\ |\ |\ |\
backgrounds
,What is the role of the GASB in setting accounting
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
standards? - CORRECT ANSWERS ✔✔The GASB is a |\ |\ |\ |\ |\ |\ |\ |\
private-sector organization that establishes accounting |\ |\ |\ |\ |\
and financial reporting standards for U.S. state and local
|\ |\ |\ |\ |\ |\ |\ |\ |\
governments.
In what way do accountants have an economic incentive
|\ |\ |\ |\ |\ |\ |\ |\ |\
to conduct themselves ethically? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔The value of the information produced by accountants
|\ |\ |\ |\ |\ |\ |\ |\
is related to the confidence that users have in the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reliability of that information. |\ |\ |\
How is it possible for an accountant to intentionally
|\ |\ |\ |\ |\ |\ |\ |\ |\
deceive financial statement users and yet still technically
|\ |\ |\ |\ |\ |\ |\ |\
be in compliance with generally accepted accounting
|\ |\ |\ |\ |\ |\ |\
principles (GAAP)? - CORRECT ANSWERS ✔✔There is |\ |\ |\ |\ |\ |\ |\
flexibility inherent in the assumptions underlying the |\ |\ |\ |\ |\ |\ |\
preparation of financial statements. |\ |\ |\
Your boss approaches you with a concerning letter from
|\ |\ |\ |\ |\ |\ |\ |\ |\
the IRS and asks you to explain the role of the IRS in
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
regulating accounting standards. Based on the role of the |\ |\ |\ |\ |\ |\ |\ |\ |\
IRS, what could be the problem detailed in the letter? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔The company has not filed its |\ |\ |\ |\ |\ |\ |\ |\
taxes in accordance with the law.
|\ |\ |\ |\ |\
, Anika is considering investing in a tech company that is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
known for developing smart home appliances. Before
|\ |\ |\ |\ |\ |\ |\
investing, Anika first wants to ensure that the company's |\ |\ |\ |\ |\ |\ |\ |\ |\
past financial performance has been satisfactory and that
|\ |\ |\ |\ |\ |\ |\
the company manages its cash flows well. What type of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
accounting information would provide this evidence for |\ |\ |\ |\ |\ |\ |\
Anika? - CORRECT ANSWERS ✔✔Financial reports
|\ |\ |\ |\ |\
Alliah Company just released its public accounting data
|\ |\ |\ |\ |\ |\ |\ |\
for 20X9. Which user of accounting information will
|\ |\ |\ |\ |\ |\ |\ |\
monitor this data to ensure that the company is providing
|\ |\ |\ |\ |\ |\ |\ |\ |\
sufficient information for investors? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔Government agencies
|\ |\
A new product line manager approaches the accounting
|\ |\ |\ |\ |\ |\ |\ |\
department in order to understand the past performance |\ |\ |\ |\ |\ |\ |\ |\
of the product line he has been asked to manage in the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
future. Which role of accounting involves obtaining and
|\ |\ |\ |\ |\ |\ |\ |\
using financial information to determine the financial
|\ |\ |\ |\ |\ |\ |\
health and performance of a business or product line? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Evaluation |\ |\
You read in the newspaper that a local company you are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
familiar with has been found guilty in court of publishing
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
financial statements that are false and misleading to|\ |\ |\ |\ |\ |\ |\ |\
users of those financial statements. In this situation, what
|\ |\ |\ |\ |\ |\ |\ |\
could the American Institute of Certified Public
|\ |\ |\ |\ |\ |\ |\ |\
Accountants (AICPA) do in response to the accountants |\ |\ |\ |\ |\ |\ |\ |\
