WGU D196 – PRINCIPLES OF FINANCIAL AND
MANAGERIAL ACCOUNTING EXAM QUESTIONS
WITH ANSWERS
What is the role and purpose of accounting?
of putting together financial information in such a way that it becomes
comprehensible to every stakeholder and shareholder.
Who would use accounting information and why?
To have clear answers about financial information for everybody.
What are the significant influences on accounting?
1) sources of finance
2) the prevailing legal system
3) the relationship between accounting and taxation
4) cultural comparisons between societies.
What is the role of ethics in accounting?
to maintain morality and legality
What is the accounting cycle?
, 1. identify transactions
2. record transactions
3. post to the general ledger
4. calculate adjusted trial balance
5. make adjusting entries
6. create adjusted trial balance
7. create financial statements
8. make closing entries
What is the accounting equation?
It provides the basis for double-entry accounting and emphasizes the
relationship between the balance sheet
What is the basic accounting equation?
Assets = liabiltities + stockholder's equity
What is the expanded accounting equation?
Assets = liabilities + capital + revenue - expenses - drawings
What are the four financial statements covered in module 3?
Balance sheet, income statement, statement of retained earnings, state-ment of
cash flows
MANAGERIAL ACCOUNTING EXAM QUESTIONS
WITH ANSWERS
What is the role and purpose of accounting?
of putting together financial information in such a way that it becomes
comprehensible to every stakeholder and shareholder.
Who would use accounting information and why?
To have clear answers about financial information for everybody.
What are the significant influences on accounting?
1) sources of finance
2) the prevailing legal system
3) the relationship between accounting and taxation
4) cultural comparisons between societies.
What is the role of ethics in accounting?
to maintain morality and legality
What is the accounting cycle?
, 1. identify transactions
2. record transactions
3. post to the general ledger
4. calculate adjusted trial balance
5. make adjusting entries
6. create adjusted trial balance
7. create financial statements
8. make closing entries
What is the accounting equation?
It provides the basis for double-entry accounting and emphasizes the
relationship between the balance sheet
What is the basic accounting equation?
Assets = liabiltities + stockholder's equity
What is the expanded accounting equation?
Assets = liabilities + capital + revenue - expenses - drawings
What are the four financial statements covered in module 3?
Balance sheet, income statement, statement of retained earnings, state-ment of
cash flows
