WGU D774 - PA
Study online at https://quizlet.com/_hn0uqv
1. Which ancient civilization dates to the early develop- Ancient Mesopotamia (c.
ment of accounting? 3000 BCE)
2. Which year is associated with the stock market crash 1929
that had a profound economic impact?
3. What was the regulatory outcome of accounting scan- The Sarbanes-Oxley Act
dals such as Enron, WorldCom, and Tyco? was introduced, requiring
stricter financial controls
and oversight.
4. A business owner is trying to better understand their Financial accounting fo-
company's financial performance and operations. The cuses on external report-
owner recently learned that two types of account- ing, while managerial ac-
ing—financial accounting and managerial account- counting focuses on inter-
ing—serve different purposes. What is one difference nal decision-making.
between them?
5. Which statement describes the focus of managerial Improving future results
accounting? based on an analysis of
past performance
6. A company is preparing annual financial statements to They include monetary
share with investors. Which characteristic of financial and nonmonetary infor-
accounting reports applies in this situation? mation.
7. A publicly traded company is preparing to issue stock Securities and Exchange
to its investors. As part of the process, the compa- Commission (SEC)
ny must submit financial disclosures and filings to
the regulatory agency overseeing securities markets.
Which federal agency is responsible for this regula-
tion?
, WGU D774 - PA
Study online at https://quizlet.com/_hn0uqv
8. Which organization is an independent, nonprofit en- Financial Accounting Stan-
tity responsible for setting financial accounting and dards Board (FASB)
reporting standards for public and private sector busi-
nesses in the United States that use generally accepted
accounting principles (GAAP)?
9. What is the purpose of the Public Company Accounting It oversees the audits of
Oversight Board (PCAOB)? public companies to pro-
tect investors.
10. A multinational corporation wants to hire an audit firm Big Four
with extensive experience in financial statement audit-
ing for publicly traded companies. Which type of firm
would be the most suitable choice?
11. Which accounting formula does the income statement Revenues - expenses
represent?
12. What does a company's operating expense on the in- The day-to-day opera-
come statement represent? tional costs not associated
with the direct selling of
products or services
13. A business pays rent for its office space, which is re- General and administra-
ported as an expense on its income statement.Which tive expenses
category includes this expense?
14. Which financial statement reports the profit or loss Income statement
using the accrual basis of accounting?
15. How do the income statement categories allow for dif- It categorizes revenue
ferent income streams when a company earns money based on operating and
from multiple sources? non-operating activities.
Study online at https://quizlet.com/_hn0uqv
1. Which ancient civilization dates to the early develop- Ancient Mesopotamia (c.
ment of accounting? 3000 BCE)
2. Which year is associated with the stock market crash 1929
that had a profound economic impact?
3. What was the regulatory outcome of accounting scan- The Sarbanes-Oxley Act
dals such as Enron, WorldCom, and Tyco? was introduced, requiring
stricter financial controls
and oversight.
4. A business owner is trying to better understand their Financial accounting fo-
company's financial performance and operations. The cuses on external report-
owner recently learned that two types of account- ing, while managerial ac-
ing—financial accounting and managerial account- counting focuses on inter-
ing—serve different purposes. What is one difference nal decision-making.
between them?
5. Which statement describes the focus of managerial Improving future results
accounting? based on an analysis of
past performance
6. A company is preparing annual financial statements to They include monetary
share with investors. Which characteristic of financial and nonmonetary infor-
accounting reports applies in this situation? mation.
7. A publicly traded company is preparing to issue stock Securities and Exchange
to its investors. As part of the process, the compa- Commission (SEC)
ny must submit financial disclosures and filings to
the regulatory agency overseeing securities markets.
Which federal agency is responsible for this regula-
tion?
, WGU D774 - PA
Study online at https://quizlet.com/_hn0uqv
8. Which organization is an independent, nonprofit en- Financial Accounting Stan-
tity responsible for setting financial accounting and dards Board (FASB)
reporting standards for public and private sector busi-
nesses in the United States that use generally accepted
accounting principles (GAAP)?
9. What is the purpose of the Public Company Accounting It oversees the audits of
Oversight Board (PCAOB)? public companies to pro-
tect investors.
10. A multinational corporation wants to hire an audit firm Big Four
with extensive experience in financial statement audit-
ing for publicly traded companies. Which type of firm
would be the most suitable choice?
11. Which accounting formula does the income statement Revenues - expenses
represent?
12. What does a company's operating expense on the in- The day-to-day opera-
come statement represent? tional costs not associated
with the direct selling of
products or services
13. A business pays rent for its office space, which is re- General and administra-
ported as an expense on its income statement.Which tive expenses
category includes this expense?
14. Which financial statement reports the profit or loss Income statement
using the accrual basis of accounting?
15. How do the income statement categories allow for dif- It categorizes revenue
ferent income streams when a company earns money based on operating and
from multiple sources? non-operating activities.
