WGU D774 INTRO TO BUSINESS
ACCOUNTING OA OBJECTIVE ASSESSMENT
ACTUAL EXAM FULL SOLUTION WITH
VERIFIED ANSWERS 2026
‣ Historical period of increased accounting importance . Answer: The
Industrial Revolution
‣ Effect of Sarbanes-Oxley Act of 2002 . Answer: It increased corporate
responsibility.
‣ Using corporate credit card for personal expenses . Answer: Fraud
‣ Purpose of financial accounting . Answer: Provides historical financial
data in standardized reports for external stakeholders
‣ Feature of managerial accounting reports . Answer: Tailored to meet
internal decision-makers' needs
‣ Statement describing managerial accounting reports . Answer:
Prepared for internal decision-making needs of management
‣ SEC role in accounting standards . Answer: Enforces financial
reporting rules established by the FASB
, ‣ Certification to offer auditing/tax services . Answer: CPA
‣ Auditor buying stock in a company they audit . Answer: Violates
independence and objectivity
‣ Who oversees and maintains internal controls . Answer: Management
‣ Manufacturing expense category on income statement . Answer: Cost
of goods sold
‣ Interpretation of net income . Answer: Revenues are greater than
expenses
‣ Limitation of accrual accounting . Answer: May not reflect actual cash
flow
‣ Effect of favorable volume variance . Answer: Increases revenue and
cost of goods sold
‣ Category for wages of store employees . Answer: Cost of goods sold
‣ Which statement tracks actual cash movement . Answer: Statement of
cash flows
ACCOUNTING OA OBJECTIVE ASSESSMENT
ACTUAL EXAM FULL SOLUTION WITH
VERIFIED ANSWERS 2026
‣ Historical period of increased accounting importance . Answer: The
Industrial Revolution
‣ Effect of Sarbanes-Oxley Act of 2002 . Answer: It increased corporate
responsibility.
‣ Using corporate credit card for personal expenses . Answer: Fraud
‣ Purpose of financial accounting . Answer: Provides historical financial
data in standardized reports for external stakeholders
‣ Feature of managerial accounting reports . Answer: Tailored to meet
internal decision-makers' needs
‣ Statement describing managerial accounting reports . Answer:
Prepared for internal decision-making needs of management
‣ SEC role in accounting standards . Answer: Enforces financial
reporting rules established by the FASB
, ‣ Certification to offer auditing/tax services . Answer: CPA
‣ Auditor buying stock in a company they audit . Answer: Violates
independence and objectivity
‣ Who oversees and maintains internal controls . Answer: Management
‣ Manufacturing expense category on income statement . Answer: Cost
of goods sold
‣ Interpretation of net income . Answer: Revenues are greater than
expenses
‣ Limitation of accrual accounting . Answer: May not reflect actual cash
flow
‣ Effect of favorable volume variance . Answer: Increases revenue and
cost of goods sold
‣ Category for wages of store employees . Answer: Cost of goods sold
‣ Which statement tracks actual cash movement . Answer: Statement of
cash flows
