WGU D196 TEST 2026 COMPREHENSIVE
ASSESSMENT SCRIPT SOLVED QUESTIONS
ANSWERS UPDATED REVIEW SET
◉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?
Answer: 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?
Answer: 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?
Answer: Lenders
◉ Which of the primary financial statements reports the resources,
obligations, and owner's equity of a company?
,Answer: 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?
Answer: 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?
Answer: People from a variety of business-related backgrounds
◉ What is the role of the GASB in setting accounting standards?
Answer: 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?
Answer: 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)?
Answer: 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?
Answer: 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?
, Answer: 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?
Answer: 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?
Answer: 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 who were found guilty of unethical conduct in
accounting practices?
Answer: Implement professional sanctions
ASSESSMENT SCRIPT SOLVED QUESTIONS
ANSWERS UPDATED REVIEW SET
◉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?
Answer: 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?
Answer: 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?
Answer: Lenders
◉ Which of the primary financial statements reports the resources,
obligations, and owner's equity of a company?
,Answer: 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?
Answer: 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?
Answer: People from a variety of business-related backgrounds
◉ What is the role of the GASB in setting accounting standards?
Answer: 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?
Answer: 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)?
Answer: 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?
Answer: 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?
, Answer: 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?
Answer: 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?
Answer: 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 who were found guilty of unethical conduct in
accounting practices?
Answer: Implement professional sanctions
