WGU D774 SECTION 1 TEST QUESTIONS AND CORRECT
ANSWERS LATEST
What is accounting's main objective? The ANSWER to offer financial data
that is helpful for making decisions.
Who uses accounting data internally? ANSWER: Supervisors, managers,
executives, and workers.
Who are the outside parties who utilize accounting data? ANSWER: Customers,
suppliers, government organizations, creditors, and investors.
What is the equation for accounting? In ANSWER , assets are equal to
liabilities plus owner's equity.
What kind of company has only one owner and provides no liability protection?
A sole proprietorship, in ANSWER .
What is a corporation's most important feature? The ANSWER It has limited
liability for its owners and is a distinct legal entity.
Which four financial statements are the most important? ANSWER the balance
sheet, cash flow statement, income statement, and statement of retained
earnings.
Which financial statement displays income and outlays? ANSWER Statement
of Income.
Which financial statement displays the state of the company's finances at a
certain moment in time? The balance sheet for the answer.
GAAP: What is it? The American standards for financial reporting are known as
ANSWER Generally Accepted Accounting Principles.
U.S. accounting standards are created by whom? FASB (Financial Accounting
Standards Board) is the answer.
ANSWERS LATEST
What is accounting's main objective? The ANSWER to offer financial data
that is helpful for making decisions.
Who uses accounting data internally? ANSWER: Supervisors, managers,
executives, and workers.
Who are the outside parties who utilize accounting data? ANSWER: Customers,
suppliers, government organizations, creditors, and investors.
What is the equation for accounting? In ANSWER , assets are equal to
liabilities plus owner's equity.
What kind of company has only one owner and provides no liability protection?
A sole proprietorship, in ANSWER .
What is a corporation's most important feature? The ANSWER It has limited
liability for its owners and is a distinct legal entity.
Which four financial statements are the most important? ANSWER the balance
sheet, cash flow statement, income statement, and statement of retained
earnings.
Which financial statement displays income and outlays? ANSWER Statement
of Income.
Which financial statement displays the state of the company's finances at a
certain moment in time? The balance sheet for the answer.
GAAP: What is it? The American standards for financial reporting are known as
ANSWER Generally Accepted Accounting Principles.
U.S. accounting standards are created by whom? FASB (Financial Accounting
Standards Board) is the answer.
