D103 WGU -INTERMEDIATE ACCOUNTING I
|ACTUAL QUESTIONS AND VERIFIED ANSWERS
|BRAND NEW 2026-2027 UPDATE|GRADED A+
Question 1
1. Which role does the Securities and Exchange Commission (SEC) play in the formulation
of accounting standards?
A. It shares equal authority with other standard setters.
B. It avoids setting standards so accountants remain autonomous.
C. It provides guidance to other standard setters.
D. It creates private company accounting standards.
CORRECT ANSWER
Ans c
The SEC oversees and enforces accounting standards established by FASB which
formulates and implements accounting standards.
Question 2
2. What is the role of the Financial Accounting Standards Board (FASB) task forces in
standards setting?
A. Performing research and analysis to support decision-making by the board. B. Reporting
financial violations to the Securities and Exchange Commission (SEC).
C. Communicating new standards to the public.
D. Recommending prospective members to the board.
CORRECT ANSWER
Ans a
1
,Question 3
3. What is the primary mission of the Financial Accounting Standards Board (FASB)?
A. To be the forerunner of the current Accounting Principles Board (APB).
B. To function as a branch of the Securities and Exchange Commission (SEC) responsible for
setting financial accounting standards.
C. To issue a series of pronouncements entitled Auditing Standards Updates.
D. To provide a transparent process for creating useful accounting standards.
CORRECT ANSWER
Ans d
The FASB's mission is to establish and improve standards of financial accounting and
reporting for the guidance and education of the public.
Question 4
4. Why were the accounting standards issued by the Financial Accounting Standards Board
(FASB) expected to be more influential than previously issued standards?
A. The FASB operates in full view of the public.
B. The FASB consists of members that work pro bono.
C. The FASB is composed of board members from large companies.
D. The FASB requires board members to possess advanced degrees.
CORRECT ANSWER
Ans a
The expectations of success and support for the new FASB relied on two basic premises:
(1) The FASB should be responsive to the needs and viewpoints of the entire economic
community, not just the public accounting profession. (2) It should operate in full view of
the public through a "due process" system that gives interested persons ample
opportunity to make their views known.
Question 5
2
, 5. How are FASB and GAAP related when it comes to user groups?
A. The FASB usually pressures user groups to change GAAP.
B. User groups often pressure the FASB to influence GAAP.
C. GAAP usually pressures the FASB to change user groups.
D. User groups often pressure GAAP to influence the FASB.
CORRECT ANSWER
Ans b
There are several groups (managers, investors, accountants, preparers, creditors, lenders,
financial statement users, governmental agencies, financial analysts, industry groups,
and auditors, internal and external users) that influence the standard setting process.
The standard setting process is a political process that is affected by the impact of several
lobbying groups. The government, through the SEC, influences accounting standards. The
SEC has the authority to issue accounting standards but has assigned this responsibility
to the private sector. Nonetheless, the SEC can exert pressure on the FASB to issue
accounting standards and veto the standards promulgated by the FASB. Auditing firms,
the corporate sector, creditors, financial analysts, the financial community, accounting
organizations, industry groups, and investors can influence the FASB by written
comments about Exposure Drafts and participation in public meetings and public
roundtables regarding a proposed financial reporting standard.
Question 6
6. Which statement correctly compares a conceptual framework to a rules-based
framework?
A. Conceptual frameworks focus on the objective of financial reporting versus technical
compliance to existing accounting rules.
B. Conceptual frameworks are less responsive to emerging accounting or industry-specific
issues.
C. Rules-based frameworks typically result in financial statements that are more comparable
and reliable.
D. Rules-based frameworks lead to more reliable financial statements because rules are
uniformly applied.
CORRECT ANSWER
3
|ACTUAL QUESTIONS AND VERIFIED ANSWERS
|BRAND NEW 2026-2027 UPDATE|GRADED A+
Question 1
1. Which role does the Securities and Exchange Commission (SEC) play in the formulation
of accounting standards?
A. It shares equal authority with other standard setters.
B. It avoids setting standards so accountants remain autonomous.
C. It provides guidance to other standard setters.
D. It creates private company accounting standards.
CORRECT ANSWER
Ans c
The SEC oversees and enforces accounting standards established by FASB which
formulates and implements accounting standards.
Question 2
2. What is the role of the Financial Accounting Standards Board (FASB) task forces in
standards setting?
A. Performing research and analysis to support decision-making by the board. B. Reporting
financial violations to the Securities and Exchange Commission (SEC).
C. Communicating new standards to the public.
D. Recommending prospective members to the board.
CORRECT ANSWER
Ans a
1
,Question 3
3. What is the primary mission of the Financial Accounting Standards Board (FASB)?
A. To be the forerunner of the current Accounting Principles Board (APB).
B. To function as a branch of the Securities and Exchange Commission (SEC) responsible for
setting financial accounting standards.
C. To issue a series of pronouncements entitled Auditing Standards Updates.
D. To provide a transparent process for creating useful accounting standards.
CORRECT ANSWER
Ans d
The FASB's mission is to establish and improve standards of financial accounting and
reporting for the guidance and education of the public.
Question 4
4. Why were the accounting standards issued by the Financial Accounting Standards Board
(FASB) expected to be more influential than previously issued standards?
A. The FASB operates in full view of the public.
B. The FASB consists of members that work pro bono.
C. The FASB is composed of board members from large companies.
D. The FASB requires board members to possess advanced degrees.
CORRECT ANSWER
Ans a
The expectations of success and support for the new FASB relied on two basic premises:
(1) The FASB should be responsive to the needs and viewpoints of the entire economic
community, not just the public accounting profession. (2) It should operate in full view of
the public through a "due process" system that gives interested persons ample
opportunity to make their views known.
Question 5
2
, 5. How are FASB and GAAP related when it comes to user groups?
A. The FASB usually pressures user groups to change GAAP.
B. User groups often pressure the FASB to influence GAAP.
C. GAAP usually pressures the FASB to change user groups.
D. User groups often pressure GAAP to influence the FASB.
CORRECT ANSWER
Ans b
There are several groups (managers, investors, accountants, preparers, creditors, lenders,
financial statement users, governmental agencies, financial analysts, industry groups,
and auditors, internal and external users) that influence the standard setting process.
The standard setting process is a political process that is affected by the impact of several
lobbying groups. The government, through the SEC, influences accounting standards. The
SEC has the authority to issue accounting standards but has assigned this responsibility
to the private sector. Nonetheless, the SEC can exert pressure on the FASB to issue
accounting standards and veto the standards promulgated by the FASB. Auditing firms,
the corporate sector, creditors, financial analysts, the financial community, accounting
organizations, industry groups, and investors can influence the FASB by written
comments about Exposure Drafts and participation in public meetings and public
roundtables regarding a proposed financial reporting standard.
Question 6
6. Which statement correctly compares a conceptual framework to a rules-based
framework?
A. Conceptual frameworks focus on the objective of financial reporting versus technical
compliance to existing accounting rules.
B. Conceptual frameworks are less responsive to emerging accounting or industry-specific
issues.
C. Rules-based frameworks typically result in financial statements that are more comparable
and reliable.
D. Rules-based frameworks lead to more reliable financial statements because rules are
uniformly applied.
CORRECT ANSWER
3
