WGU D103 -INTERMEDIATE ACCOUNTING I
|ACTUAL QUESTIONS AND VERIFIED ANSWERS
|BRAND NEW 2026-2027 UPDATE|GRADED A+
Question 1
What is a characteristic for members of the Financial Accounting Standards Board (FASB)?
A. They are independent of any other organization.
B. They are only part-time employees.
C. They are required to hold CPA certificates.
D. They are employed by the American Institute of Certified Public Accountants (AICPA).
CORRECT ANSWER
A. They are independent of any other organization.
Question 2
Which organization requires that members prepare financial statements in accordance
with GAAP?
A. AICPA's Code of Professional Conduct
B. Financial Accounting Standards Board (FASB)
C. Internal Revenue Service (IRS)
D. International Accounting Standards Board (IASB)
CORRECT ANSWER
A. AICPA's Code of Professional Conduct
Question 3
What is addressed in Rule 203 of the Code of Professional Conduct?
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,A. Ethical requirements
B. Advertising to obtain clients
C. Financial statements being based on generally accepted accounting principles
D. Auditing financial statements
CORRECT ANSWER
C. Financial statements being based on generally accepted accounting principles
Question 4
When a company changes accounting principles, what might its financial statements lack?
A. Confirmatory value
B. Predictive value
C. Faithful representation
D. Consistency
CORRECT ANSWER
D. Consistency
Question 5
Which organization developed the Codification?
A. FASAC (Financial Accounting Standards Advisory Council)
B. FASB (Financial Accounting Standards Board)
C. AAA (American Accounting Association)
D. AICPA (American Institute of Certified Public Accountants)
CORRECT ANSWER
B. FASB (Financial Accounting Standards Board)
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, Question 6
In the conceptual framework for financial reporting, which level provides "the why", or
the purpose of accounting?
A. Fourth
B. First
C. Third
D.Second
CORRECT ANSWER
B. First
Question 7
What are the enhancing qualities of accounting information?
A. Comparability and materiality
B. Comparability and verifiability
C. Relevance and faithful representation
D. Relevance and consistency
CORRECT ANSWER
B. Comparability and verifiability
Question 8
Why would valuing assets at liquidation rather than cost be inconsistent with GAAP?
A. It would be inconsistent with the historical cost principle.
B. It would be inconsistent with the periodicity assumption.
C. It would be inconsistent with the materiality constraint.
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|ACTUAL QUESTIONS AND VERIFIED ANSWERS
|BRAND NEW 2026-2027 UPDATE|GRADED A+
Question 1
What is a characteristic for members of the Financial Accounting Standards Board (FASB)?
A. They are independent of any other organization.
B. They are only part-time employees.
C. They are required to hold CPA certificates.
D. They are employed by the American Institute of Certified Public Accountants (AICPA).
CORRECT ANSWER
A. They are independent of any other organization.
Question 2
Which organization requires that members prepare financial statements in accordance
with GAAP?
A. AICPA's Code of Professional Conduct
B. Financial Accounting Standards Board (FASB)
C. Internal Revenue Service (IRS)
D. International Accounting Standards Board (IASB)
CORRECT ANSWER
A. AICPA's Code of Professional Conduct
Question 3
What is addressed in Rule 203 of the Code of Professional Conduct?
1
,A. Ethical requirements
B. Advertising to obtain clients
C. Financial statements being based on generally accepted accounting principles
D. Auditing financial statements
CORRECT ANSWER
C. Financial statements being based on generally accepted accounting principles
Question 4
When a company changes accounting principles, what might its financial statements lack?
A. Confirmatory value
B. Predictive value
C. Faithful representation
D. Consistency
CORRECT ANSWER
D. Consistency
Question 5
Which organization developed the Codification?
A. FASAC (Financial Accounting Standards Advisory Council)
B. FASB (Financial Accounting Standards Board)
C. AAA (American Accounting Association)
D. AICPA (American Institute of Certified Public Accountants)
CORRECT ANSWER
B. FASB (Financial Accounting Standards Board)
2
, Question 6
In the conceptual framework for financial reporting, which level provides "the why", or
the purpose of accounting?
A. Fourth
B. First
C. Third
D.Second
CORRECT ANSWER
B. First
Question 7
What are the enhancing qualities of accounting information?
A. Comparability and materiality
B. Comparability and verifiability
C. Relevance and faithful representation
D. Relevance and consistency
CORRECT ANSWER
B. Comparability and verifiability
Question 8
Why would valuing assets at liquidation rather than cost be inconsistent with GAAP?
A. It would be inconsistent with the historical cost principle.
B. It would be inconsistent with the periodicity assumption.
C. It would be inconsistent with the materiality constraint.
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