WGU D774 - PA Questions with 100% Correct
Answers
Which ancient civilization dates to the early development of accounting?
Ancient Mesopotamia (c. 3000 BCE)
Which year is associated with the stock market crash that had a profound economic
impact?
1929
What was the regulatory outcome of accounting scandals such as Enron, WorldCom,
and Tyco?
The Sarbanes-Oxley Act was introduced, requiring stricter financial controls and oversight.
A business owner is trying to better understand their company's financial performance
and operations. The owner recently learned that two types of accounting—financial
accounting and managerial accounting—serve different purposes. What is one
difference between them?
Financial accounting focuses on external reporting, while managerial accounting focuses on
internal decision-making.
Which statement describes the focus of managerial accounting?
Improving future results based on an analysis of past performance
A company is preparing annual financial statements to share with investors. Which
characteristic of financial accounting reports applies in this situation?
They include monetary and nonmonetary information.
, A publicly traded company is preparing to issue stock to its investors. As part of the
process, the company must submit financial disclosures and filings to the regulatory
agency overseeing securities markets. Which federal agency is responsible for this
regulation?
Securities and Exchange Commission (SEC)
Which organization is an independent, nonprofit entity responsible for setting financial
accounting and reporting standards for public and private sector businesses in the
United States that use generally accepted accounting principles (GAAP)?
Financial Accounting Standards Board (FASB)
What is the purpose of the Public Company Accounting Oversight Board (PCAOB)?
It oversees the audits of public companies to protect investors.
A multinational corporation wants to hire an audit firm with extensive experience in
financial statement auditing for publicly traded companies. Which type of firm would
be the most suitable choice?
Big Four
Which accounting formula does the income statement represent?
Revenues - expenses
What does a company's operating expense on the income statement represent?
The day-to-day operational costs not associated with the direct selling of products or services
A business pays rent for its office space, which is reported as an expense on its income
statement.Which category includes this expense?
General and administrative expenses
Answers
Which ancient civilization dates to the early development of accounting?
Ancient Mesopotamia (c. 3000 BCE)
Which year is associated with the stock market crash that had a profound economic
impact?
1929
What was the regulatory outcome of accounting scandals such as Enron, WorldCom,
and Tyco?
The Sarbanes-Oxley Act was introduced, requiring stricter financial controls and oversight.
A business owner is trying to better understand their company's financial performance
and operations. The owner recently learned that two types of accounting—financial
accounting and managerial accounting—serve different purposes. What is one
difference between them?
Financial accounting focuses on external reporting, while managerial accounting focuses on
internal decision-making.
Which statement describes the focus of managerial accounting?
Improving future results based on an analysis of past performance
A company is preparing annual financial statements to share with investors. Which
characteristic of financial accounting reports applies in this situation?
They include monetary and nonmonetary information.
, A publicly traded company is preparing to issue stock to its investors. As part of the
process, the company must submit financial disclosures and filings to the regulatory
agency overseeing securities markets. Which federal agency is responsible for this
regulation?
Securities and Exchange Commission (SEC)
Which organization is an independent, nonprofit entity responsible for setting financial
accounting and reporting standards for public and private sector businesses in the
United States that use generally accepted accounting principles (GAAP)?
Financial Accounting Standards Board (FASB)
What is the purpose of the Public Company Accounting Oversight Board (PCAOB)?
It oversees the audits of public companies to protect investors.
A multinational corporation wants to hire an audit firm with extensive experience in
financial statement auditing for publicly traded companies. Which type of firm would
be the most suitable choice?
Big Four
Which accounting formula does the income statement represent?
Revenues - expenses
What does a company's operating expense on the income statement represent?
The day-to-day operational costs not associated with the direct selling of products or services
A business pays rent for its office space, which is reported as an expense on its income
statement.Which category includes this expense?
General and administrative expenses
