WGU D216 BUSINESS LAW FOR
ACCOUNTANTS EXAM: |OA| OBJECTIVE
ASSESSMENT, (LATEST 2026–2027 UPDATE),
WITH CORRECT/ACCURATE ANSWERS
WGU D216 BUSINESS LAW FOR
ACCOUNTANTS OA| OBJECTIVE
ASSESSMENT
SECTION 1 — QUESTIONS 1–25
Question 1
Under the Sarbanes–Oxley Act (SOX), who is primarily responsible for certifying the accuracy of
information contained in a public company’s financial statements?
A. The independent external auditor
B. The board of directors
C. The Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
D. The Securities and Exchange Commission (SEC)
Correct Answer: C
Rationale 1:
SOX requires both the CEO and CFO to personally certify that financial statements are accurate and fairly
presented, increasing executive accountability and reducing financial fraud.
Question 2
A corporation that meets certain qualifying requirements under Subchapter S of the Internal Revenue Code
may elect S corporation status. Which of the following is a qualifying requirement?
A. The corporation must have more than 100 shareholders
B. The corporation may have nonresident alien shareholders
,C. The corporation must have only one class of stock
D. The corporation must be a member of an affiliated group
Correct Answer: C
Rationale 2:
S corporations are limited to one class of stock to preserve pass-through taxation and avoid complex
ownership structures.
Question 3
Which form of intellectual property protection is used to protect confidential business ideas and processes?
A. Copyright
B. Trademark
C. Patent
D. Trade secret
Correct Answer: D
Rationale 3:
Trade secrets protect valuable ideas, formulas, and processes that derive economic value from remaining
confidential.
Question 4
A public company’s CEO and CFO certified the company’s annual 10-K filing under SOX, but only the
CEO certified the quarterly 10-Q filing. Has the company complied with SOX?
A. No, because both the CEO and CFO must certify quarterly filings
B. No, because the independent auditor must certify quarterly filings
C. Yes, because only annual filings require dual certification
D. Yes, because quarterly filings do not require certification
Correct Answer: A
Rationale 4:
SOX requires both the CEO and CFO to certify annual (10-K) and quarterly (10-Q) filings to ensure
continuous accountability.
Question 5
,A manufacturing company hires new employees at a significantly lower wage than existing employees. The
accountant recommends replacing higher-paid workers to reduce labor costs. Is this recommendation legal?
A. Yes, because employers may terminate employees to reduce costs
B. Yes, because the accountant’s duty is to maximize profit
C. No, because replacing employees for lower wages is illegal
D. No, because accountants may not advise on employment decisions
Correct Answer: A
Rationale 5:
Under employment-at-will doctrine, employers may legally terminate employees for economic reasons,
provided no discrimination or contract violation occurs.
Question 6
Which doctrine allows employers to terminate employees without cause?
A. Just cause
B. Collective bargaining
C. Employment-at-will
D. Due process
Correct Answer: C
Rationale 6:
Employment-at-will permits termination by either party at any time, absent legal exceptions.
Question 7
Which is a major exception to employment-at-will?
A. Employer preference
B. Public policy exception
C. Business necessity
D. Economic hardship
Correct Answer: B
Rationale 7:
The public policy exception prevents termination for reasons that violate laws or public interest (e.g.,
whistleblowing).
, Question 8
Which law primarily regulates corporate disclosures and securities fraud?
A. Sherman Act
B. Securities Exchange Act of 1934
C. Clayton Act
D. Federal Trade Commission Act
Correct Answer: B
Rationale 8:
The Securities Exchange Act of 1934 governs ongoing disclosure requirements and securities fraud
enforcement.
Question 9
Which form of business organization offers limited liability and pass-through taxation?
A. C corporation
B. General partnership
C. S corporation
D. Sole proprietorship
Correct Answer: C
Rationale 9:
S corporations provide limited liability while avoiding double taxation through pass-through income.
Question 10
Which document legally creates a corporation?
A. Corporate bylaws
B. Shareholder agreement
C. Articles of incorporation
D. Prospectus
Correct Answer: C
Rationale 10:
Articles of incorporation establish the corporation as a legal entity upon state approval.
ACCOUNTANTS EXAM: |OA| OBJECTIVE
ASSESSMENT, (LATEST 2026–2027 UPDATE),
WITH CORRECT/ACCURATE ANSWERS
WGU D216 BUSINESS LAW FOR
ACCOUNTANTS OA| OBJECTIVE
ASSESSMENT
SECTION 1 — QUESTIONS 1–25
Question 1
Under the Sarbanes–Oxley Act (SOX), who is primarily responsible for certifying the accuracy of
information contained in a public company’s financial statements?
A. The independent external auditor
B. The board of directors
C. The Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
D. The Securities and Exchange Commission (SEC)
Correct Answer: C
Rationale 1:
SOX requires both the CEO and CFO to personally certify that financial statements are accurate and fairly
presented, increasing executive accountability and reducing financial fraud.
Question 2
A corporation that meets certain qualifying requirements under Subchapter S of the Internal Revenue Code
may elect S corporation status. Which of the following is a qualifying requirement?
A. The corporation must have more than 100 shareholders
B. The corporation may have nonresident alien shareholders
,C. The corporation must have only one class of stock
D. The corporation must be a member of an affiliated group
Correct Answer: C
Rationale 2:
S corporations are limited to one class of stock to preserve pass-through taxation and avoid complex
ownership structures.
Question 3
Which form of intellectual property protection is used to protect confidential business ideas and processes?
A. Copyright
B. Trademark
C. Patent
D. Trade secret
Correct Answer: D
Rationale 3:
Trade secrets protect valuable ideas, formulas, and processes that derive economic value from remaining
confidential.
Question 4
A public company’s CEO and CFO certified the company’s annual 10-K filing under SOX, but only the
CEO certified the quarterly 10-Q filing. Has the company complied with SOX?
A. No, because both the CEO and CFO must certify quarterly filings
B. No, because the independent auditor must certify quarterly filings
C. Yes, because only annual filings require dual certification
D. Yes, because quarterly filings do not require certification
Correct Answer: A
Rationale 4:
SOX requires both the CEO and CFO to certify annual (10-K) and quarterly (10-Q) filings to ensure
continuous accountability.
Question 5
,A manufacturing company hires new employees at a significantly lower wage than existing employees. The
accountant recommends replacing higher-paid workers to reduce labor costs. Is this recommendation legal?
A. Yes, because employers may terminate employees to reduce costs
B. Yes, because the accountant’s duty is to maximize profit
C. No, because replacing employees for lower wages is illegal
D. No, because accountants may not advise on employment decisions
Correct Answer: A
Rationale 5:
Under employment-at-will doctrine, employers may legally terminate employees for economic reasons,
provided no discrimination or contract violation occurs.
Question 6
Which doctrine allows employers to terminate employees without cause?
A. Just cause
B. Collective bargaining
C. Employment-at-will
D. Due process
Correct Answer: C
Rationale 6:
Employment-at-will permits termination by either party at any time, absent legal exceptions.
Question 7
Which is a major exception to employment-at-will?
A. Employer preference
B. Public policy exception
C. Business necessity
D. Economic hardship
Correct Answer: B
Rationale 7:
The public policy exception prevents termination for reasons that violate laws or public interest (e.g.,
whistleblowing).
, Question 8
Which law primarily regulates corporate disclosures and securities fraud?
A. Sherman Act
B. Securities Exchange Act of 1934
C. Clayton Act
D. Federal Trade Commission Act
Correct Answer: B
Rationale 8:
The Securities Exchange Act of 1934 governs ongoing disclosure requirements and securities fraud
enforcement.
Question 9
Which form of business organization offers limited liability and pass-through taxation?
A. C corporation
B. General partnership
C. S corporation
D. Sole proprietorship
Correct Answer: C
Rationale 9:
S corporations provide limited liability while avoiding double taxation through pass-through income.
Question 10
Which document legally creates a corporation?
A. Corporate bylaws
B. Shareholder agreement
C. Articles of incorporation
D. Prospectus
Correct Answer: C
Rationale 10:
Articles of incorporation establish the corporation as a legal entity upon state approval.
