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WGU D196 Objective Assessment Final Exam Version
2 Newest Complete All 200 Questions And Correct
Detailed Answers (Verified Answers) |Already Graded
A+|Verified Exam!!!|Newest Version!!!
What is vertical analysis and what information does it
provide? - Answer-Vertical analysis is used to compare
percentages at the same point in time across companies
in the same industry. It provides information on how a
company's financial value or financial gain/loss compares
to another similar company.
· What are common-size financial statements and how are
they used? - Answer-Common-Size Financial Statements
are included in most of the main statements and reduces
figures to be more easily understood(such as reducing
numbers to percentages). Horizontal and Vertical analysis
is used to analyze a company's performance over a
certain period of time.
· Who uses accounting information and why? - Answer-
Potential investors and creditors use accounting
information, but basically everyone uses accounting
information. They use it to make internal and external
business decisions.
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· What are the important influences on accounting? -
Answer-Important influences on accounting is the
development of the "generally accepted accounting
principles"(GAAP), international business and ethical
consideration.
· What is the role of ethics in accounting? - Answer-Being
an accountant requires honesty and integrity, as well as
professional judgement. So having ethics in accounting is
very important.
What are the three main functions of accounting? -
Answer-The 3 main functions of accounting are:
Analyzing, Bookkeeping, and Evaluating(ABE).
The Financial Accounting Standards Board(FASB) -
Answer-An organization responsible for studying
accounting issues and establishing standards
a) Private group
b) Public process
c) Establishes GAAP
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The Governmental Accounting Standards Board(GASB) -
Answer-A private, non governmental organization who
sets accounting and financial reporting standards for state
and local governments
Securities and Exchange Commission(SEC) - Answer-
Regulates stock exchanges
a) Has legal authority to regulate financial markets and
accounting
b) Usually defers to the FASB on accounting matters
The Public Company Accounting Oversight
Board(PCAOB) - Answer-Oversees all accounting firms.
What is the role and purpose of accounting ? - Answer-
Role: To help track income and expenditures, and to
provide investors, management, and government with
financial information.
Purpose: To accumulate, measure, and communicate
financial information about businesses and other
organizations.
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Internal Revenue Service(IRS) - Answer-Collects and
regulates income taxes
International Accounting Standards Board(IASB) - Answer-
The FASB of the world(except the USA)
Assets - Answer-assets are what we OWN.
Common Assets:
-) Cash
-) Accounts receivable
-) Inventory
-) Buildings
-) Prepaid
Liabilities - Answer-An obligation to pay cash, transfer
other assets, or provide services to someone.
A) Liabilities are what we OWE.
B) Common Liabilities:
-) Accounts Payable
-) Taxes Payable
-) Mortgage Payable
WGU D196 Objective Assessment Final Exam Version
2 Newest Complete All 200 Questions And Correct
Detailed Answers (Verified Answers) |Already Graded
A+|Verified Exam!!!|Newest Version!!!
What is vertical analysis and what information does it
provide? - Answer-Vertical analysis is used to compare
percentages at the same point in time across companies
in the same industry. It provides information on how a
company's financial value or financial gain/loss compares
to another similar company.
· What are common-size financial statements and how are
they used? - Answer-Common-Size Financial Statements
are included in most of the main statements and reduces
figures to be more easily understood(such as reducing
numbers to percentages). Horizontal and Vertical analysis
is used to analyze a company's performance over a
certain period of time.
· Who uses accounting information and why? - Answer-
Potential investors and creditors use accounting
information, but basically everyone uses accounting
information. They use it to make internal and external
business decisions.
,2|Page
· What are the important influences on accounting? -
Answer-Important influences on accounting is the
development of the "generally accepted accounting
principles"(GAAP), international business and ethical
consideration.
· What is the role of ethics in accounting? - Answer-Being
an accountant requires honesty and integrity, as well as
professional judgement. So having ethics in accounting is
very important.
What are the three main functions of accounting? -
Answer-The 3 main functions of accounting are:
Analyzing, Bookkeeping, and Evaluating(ABE).
The Financial Accounting Standards Board(FASB) -
Answer-An organization responsible for studying
accounting issues and establishing standards
a) Private group
b) Public process
c) Establishes GAAP
,3|Page
The Governmental Accounting Standards Board(GASB) -
Answer-A private, non governmental organization who
sets accounting and financial reporting standards for state
and local governments
Securities and Exchange Commission(SEC) - Answer-
Regulates stock exchanges
a) Has legal authority to regulate financial markets and
accounting
b) Usually defers to the FASB on accounting matters
The Public Company Accounting Oversight
Board(PCAOB) - Answer-Oversees all accounting firms.
What is the role and purpose of accounting ? - Answer-
Role: To help track income and expenditures, and to
provide investors, management, and government with
financial information.
Purpose: To accumulate, measure, and communicate
financial information about businesses and other
organizations.
, 4|Page
Internal Revenue Service(IRS) - Answer-Collects and
regulates income taxes
International Accounting Standards Board(IASB) - Answer-
The FASB of the world(except the USA)
Assets - Answer-assets are what we OWN.
Common Assets:
-) Cash
-) Accounts receivable
-) Inventory
-) Buildings
-) Prepaid
Liabilities - Answer-An obligation to pay cash, transfer
other assets, or provide services to someone.
A) Liabilities are what we OWE.
B) Common Liabilities:
-) Accounts Payable
-) Taxes Payable
-) Mortgage Payable
