D774 2026 Business Accounting Essentials WGU Edition

D774 2026 Business
Accounting
Essentials WGU
Edition

, Two key responsibilities of external auditors? - correct answer Examining financial
i i i i i i i i i i i




statements for accuracy and compliance & assessing the effectiveness of internal controls i i i i i i i i i i i




What do internal auditors do? - correct answer Enhance financial integrity by evaluating
i i i i i i i i i i i i i




internal controls and proactively identifying weaknesses
i i i i i




What was an effect of the Sarbanes-Oxley Act? - correct answer Strengthened auditor
i i i i i i i i i i i i i




independence and corporate accountability. i i i




Purpose of the Sarbanes-Oxley Act? - correct answer Improve financial transparency and
i i i i i i i i i i i i




reduce corporate fraud. i i




Simple difference between financial and managerial accounting? - correct answer Financial
i i i i i i i i i i i




accounting focuses on external reporting while managerial accounting focuses on internal i i i i i i i i i i i




decision-making.

Does managerial accounting need to comply with GAAP? - correct answer No
i i i i i i i i i i i




Celebrities that have an accounting degree - correct answer Janet Jackson, John Grisham, i i i i i i i i i i i i i




Simu Liu, & D'Lo Brown i i i i




Which organization is responsible for creating and issuing the financial accounting standards
i i i i i i i i i i i i




that form the foundation of generally accepted accounting principles (GAAP) in the United
i i i i i i i i i i i i i




States? - correct answer (FASB) Financial Accounting Standards Board
i i i i i i i i




How often are external financial accounting reports typically published for stakeholders, such
i i i i i i i i i i i i




as investors and regulators? - correct answer Quarterly or Annually
i i i i i i i i i




Which regulation requires the certification and documentation of internal controls, including
i i i i i i i i i i i




an auditor's issuance of an internal report after evaluating those controls? - correct answer
i i i i i i i i i i i i i i




Sarbanes-Oxley Act i




Who was the father of accounting? - correct answer Luca Pacioli
i i i i i i i i i i




Formula for Net Income - correct answer Revenue - Expenses i i i i i i i i i




Accrual Accounting is a method that... - correct answer Records revenues when earned and
i i i i i i i i i i i i i i




expenses when incurred, regardless of when cash changes hands i i i i i i i i




Cash basis accounting is a method that... - correct answer Records revenues WHEN cash is
i i i i i i i i i i i i i i i




received and expenses WHEN cash is paid, ignoring WHEN the money was earned or the
i i i i i i i i i i i i i i i




service was provided i i




Purpose of the income statement? - correct answer Report a company's revenues and
i i i i i i i i i i i i i




expenses over a period of time i i i i i