Page 1 of 29
C213 WGU OA PREP EXAM WITH ANSWERS
GRADED PASS
The emphasis in financial accounting is on which of the following
external user groups?
Investors and creditors
The primary internal group that uses accounting information is
Management
The ability a company has to pay its debts in the short run is its
Liquidity
Which of the following is a measure of the liquid position of a
corporation?
Debt ratio
Which of the following ratios is used to measure a firm's leverage?
Debt Ratio
Which of the following ratios is used to measure the profit earned on
each dollar invested in a firm?
Return on Equity
Internal reports are generally used by
Management
Which of the following is NOT an external user of financial information?
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Management
Which of the following is NOT true of the Financial Accounting
Standards Board (FASB)?
It is a government agency
Generally accepted accounting principles are
Developed by accounting rule makers
The initials GAAP stand for
Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector
is the
Financial Accounting Standards Board (FASB)
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
The initials CPA stand for
Certified Public Accountant
Which of the following is NOT a service typically provided by large
public accounting firms?
Making management decisions
Standards established by the International Accounting Standards
Board are referred to as
International Financial Reporting Standards
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Which of the following is the government agency that stipulates the
rules and regulations that govern the collection of taxes in the United
States?
Internal Revenue Service
Which of the following is NOT a reason for the integration of worldwide
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
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.
False
Increased federal oversight of the audit process resulted from the
passage of the following act of Congress -
Sarbanes-Oxley Act
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
C213 WGU OA PREP EXAM WITH ANSWERS
GRADED PASS
The emphasis in financial accounting is on which of the following
external user groups?
Investors and creditors
The primary internal group that uses accounting information is
Management
The ability a company has to pay its debts in the short run is its
Liquidity
Which of the following is a measure of the liquid position of a
corporation?
Debt ratio
Which of the following ratios is used to measure a firm's leverage?
Debt Ratio
Which of the following ratios is used to measure the profit earned on
each dollar invested in a firm?
Return on Equity
Internal reports are generally used by
Management
Which of the following is NOT an external user of financial information?
, Page 2 of 29
Management
Which of the following is NOT true of the Financial Accounting
Standards Board (FASB)?
It is a government agency
Generally accepted accounting principles are
Developed by accounting rule makers
The initials GAAP stand for
Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector
is the
Financial Accounting Standards Board (FASB)
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
The initials CPA stand for
Certified Public Accountant
Which of the following is NOT a service typically provided by large
public accounting firms?
Making management decisions
Standards established by the International Accounting Standards
Board are referred to as
International Financial Reporting Standards
, Page 3 of 29
Which of the following is the government agency that stipulates the
rules and regulations that govern the collection of taxes in the United
States?
Internal Revenue Service
Which of the following is NOT a reason for the integration of worldwide
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
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.
False
Increased federal oversight of the audit process resulted from the
passage of the following act of Congress -
Sarbanes-Oxley Act
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
