WGU D774 Intro to Business Accounting Exam Questions and Correct Answers 100%
Verified Graded A+
Two key responsibilities of external auditors? - Examining financial statements for
accuracy and compliance & assessing the effectiveness of internal controls
What do internal auditors do? - Enhance financial integrity by evaluating internal controls
and proactively identifying weaknesses
What was an effect of the Sarbanes-Oxley Act? - Strengthened auditor independence and
corporate accountability.
Purpose of the Sarbanes-Oxley Act? - Improve financial transparency and reduce
corporate fraud.
Simple difference between financial and managerial accounting? - Financial accounting
focuses on external reporting while managerial accounting focuses on internal decision-making.
Does managerial accounting need to comply with GAAP? - No
Celebrities that have an accounting degree - Janet Jackson, John Grisham, Simu Liu, &
D'Lo Brown
, Which organization is responsible for creating and issuing the financial accounting standards that
form the foundation of generally accepted accounting principles (GAAP) in the United States? -
(FASB) Financial Accounting Standards Board
How often are external financial accounting reports typically published for stakeholders, such as
investors and regulators? - Quarterly or Annually
Which regulation requires the certification and documentation of internal controls, including an
auditor's issuance of an internal report after evaluating those controls? - Sarbanes-Oxley
Act
Who was the father of accounting? - Luca Pacioli
Formula for Net Income - Revenue - Expenses
Accrual Accounting is a method that... - Records revenues when earned and expenses
when incurred, regardless of when cash changes hands
Cash basis accounting is a method that... - Records revenues WHEN cash is received and
expenses WHEN cash is paid, ignoring WHEN the money was earned or the service was
provided
Purpose of the income statement? - Report a company's revenues and expenses over a
period of time
Verified Graded A+
Two key responsibilities of external auditors? - Examining financial statements for
accuracy and compliance & assessing the effectiveness of internal controls
What do internal auditors do? - Enhance financial integrity by evaluating internal controls
and proactively identifying weaknesses
What was an effect of the Sarbanes-Oxley Act? - Strengthened auditor independence and
corporate accountability.
Purpose of the Sarbanes-Oxley Act? - Improve financial transparency and reduce
corporate fraud.
Simple difference between financial and managerial accounting? - Financial accounting
focuses on external reporting while managerial accounting focuses on internal decision-making.
Does managerial accounting need to comply with GAAP? - No
Celebrities that have an accounting degree - Janet Jackson, John Grisham, Simu Liu, &
D'Lo Brown
, Which organization is responsible for creating and issuing the financial accounting standards that
form the foundation of generally accepted accounting principles (GAAP) in the United States? -
(FASB) Financial Accounting Standards Board
How often are external financial accounting reports typically published for stakeholders, such as
investors and regulators? - Quarterly or Annually
Which regulation requires the certification and documentation of internal controls, including an
auditor's issuance of an internal report after evaluating those controls? - Sarbanes-Oxley
Act
Who was the father of accounting? - Luca Pacioli
Formula for Net Income - Revenue - Expenses
Accrual Accounting is a method that... - Records revenues when earned and expenses
when incurred, regardless of when cash changes hands
Cash basis accounting is a method that... - Records revenues WHEN cash is received and
expenses WHEN cash is paid, ignoring WHEN the money was earned or the service was
provided
Purpose of the income statement? - Report a company's revenues and expenses over a
period of time
