WGU - D774 Pre-assessment 2
Historical period of increased accounting importance The Industrial Revolution
Effect of Sarbanes-Oxley Act of 2002 It increased corporate responsibility.
Using corporate credit card for personal expenses Fraud
Purpose of financial accounting Provides historical financial data in standardized reports for external stakeholders
Feature of managerial accounting reports Tailored to meet internal decision-makers' needs
Statement describing managerial accounting reports Prepared for internal decision-making needs of management
SEC role in accounting standards Enforces financial reporting rules established by the FASB
Certification to offer auditing/tax services CPA
Auditor buying stock in a company they audit Violates independence and objectivity
Who oversees and maintains internal controls Management
Manufacturing expense category on income statement Cost of goods sold
Interpretation of net income Revenues are greater than expenses
Limitation of accrual accounting May not reflect actual cash flow
Effect of favorable volume variance Increases revenue and cost of goods sold
Category for wages of store employees Cost of goods sold
, WGU - D774 Pre-assessment 2
Which statement tracks actual cash movement Statement of cash flows
How to report flea market finds on balance sheet Assets
Trend shown by comparative income statements Changes in profitability over time
Why is net income lower than revenue Expenses reduce total amount earned
Why positive net income but low cash Non-cash expenses & accrual accounting impact cash flow
Why $100k revenue but $85k receipts Customers have not yet paid
Limitation of the balance sheet Does not include future performance
Stock issuance increases which equity category Paid-in capital
Why are raw materials assets They have future economic value
Balance sheet limitation shown by missing legal May not account for contingent liabilities
obligations
Where record $350 owed to farmer Short-term liability
Building purchased is what type of asset Long-term tangible asset
Yellow Leaf Bookstore owners' equity balance $36,000
Accrual basis — which sale recorded today Recording a $500 sale today with cash collected in 30 days
Insurance policy purchase is in which cash flow section Operating activities
Historical period of increased accounting importance The Industrial Revolution
Effect of Sarbanes-Oxley Act of 2002 It increased corporate responsibility.
Using corporate credit card for personal expenses Fraud
Purpose of financial accounting Provides historical financial data in standardized reports for external stakeholders
Feature of managerial accounting reports Tailored to meet internal decision-makers' needs
Statement describing managerial accounting reports Prepared for internal decision-making needs of management
SEC role in accounting standards Enforces financial reporting rules established by the FASB
Certification to offer auditing/tax services CPA
Auditor buying stock in a company they audit Violates independence and objectivity
Who oversees and maintains internal controls Management
Manufacturing expense category on income statement Cost of goods sold
Interpretation of net income Revenues are greater than expenses
Limitation of accrual accounting May not reflect actual cash flow
Effect of favorable volume variance Increases revenue and cost of goods sold
Category for wages of store employees Cost of goods sold
, WGU - D774 Pre-assessment 2
Which statement tracks actual cash movement Statement of cash flows
How to report flea market finds on balance sheet Assets
Trend shown by comparative income statements Changes in profitability over time
Why is net income lower than revenue Expenses reduce total amount earned
Why positive net income but low cash Non-cash expenses & accrual accounting impact cash flow
Why $100k revenue but $85k receipts Customers have not yet paid
Limitation of the balance sheet Does not include future performance
Stock issuance increases which equity category Paid-in capital
Why are raw materials assets They have future economic value
Balance sheet limitation shown by missing legal May not account for contingent liabilities
obligations
Where record $350 owed to farmer Short-term liability
Building purchased is what type of asset Long-term tangible asset
Yellow Leaf Bookstore owners' equity balance $36,000
Accrual basis — which sale recorded today Recording a $500 sale today with cash collected in 30 days
Insurance policy purchase is in which cash flow section Operating activities
