WGU C213 Accounting Quiz Questions and Answers

WGU C213 Accounting Quiz Questions
and Answers

Standards established by the International Accounting Standards Board are referred to as:
 International Financial Reporting Standards
 International Auditing Standards
 Generally Accepted Accounting Standards
 International Financial Accounting Standards

* International Financial Reporting Standards


Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies?
 Securities and Exchange Commission (SEC)
 Financial Accounting Standards Board (FASB)
 American Institute of Certified Public Accountants (AICPA)
 Internal Revenue Service (IRS)

* Securities and Exchange Commission (SEC)


Which of the following is NOT a service typically provided by large public accounting firms?
 Establishing accounting systems
 Redesigning operating procedures
 Performing audits
 Making management decisions

* Making management decisions


The initials CPA stand for
 Certified Professional Appraiser
 Certified Professional Accountant
 Certified Public Auditor
 Certified Public Accountant

* Certified Public Accountant


The organization that develops worldwide accounting standards is the:
 International Accounting Standards Board (IASB)
 International Accounting Standards Committee (IASC)
 International Committee on Accounting Standards (ICAS)
 International Board of Accounting Standards (IBAS)

,* International Accounting Standards Board (IASB)

,Which of the following is NOT a reason for the integration of worldwide accounting standards?
 the integration of the global economy
 the need to evaluate investments across the world
 the increased efficiency of financial markets
 the theoretical necessity of a common set of accounting standards

* the theoretical necessity of a common set of accounting standards


The International Accounting Standards Board (IASB) is charged with developing worldwide
accounting practices?
 True
 False

*True


With the current state of information technology, investors outside a company are now allowed
access to a company's internal database of financial information and do their own customized
analysis of a firm's performance.
 True
 False

*False


Increased federal oversight of the audit process resulted from the passage of the following act of
Congress –
 Sarbanes-Oxley Act
 Financial Reports Act
 Access to High Standards Act
 AGOA Acceleration Act

*Sarbanes-Oxley Act


The emphasis in financial accounting is on which of the following external user groups?
 Investors and creditors
 Management
 Educators
 Certified public accountants

*Investors and creditors

, The primary internal group that uses accounting information is:
 Competitors
 Investors
 Management
 Government agencies

*Management


Internal reports are generally used by:
 Management
 Suppliers
 Employees
 Lenders

*Management


Which of the following is NOT an external user of financial information?
 Customers
 Competitors
 Management
 Suppliers

*Management


A borrower benefits from providing financial information regarding income and expenses in the
form of a lower interest rate on the loan because of reduced uncertainty for the lender with
regard to repayment.
 True
 False

*True


Which of the following is NOT one of the three primary financial statements?
 The Statement of Retained Earnings
 The Balance Sheet
 The Statement of Cash Flows
 The Income Statement

*The Statement of Retained Earnings