WGU D774 INTRODUCTION TO BUSINESS
ACCOUNTING EXAM FINAL PAPER 2026
COMPLETE QUESTIONS WITH ANSWERS
GRADED A+
◉ Year of significant stock market crash. Answer: 1929
◉ Regulatory outcome of accounting scandals. Answer: The
Sarbanes-Oxley Act was introduced, requiring stricter financial
controls and oversight.
◉ Difference between financial and managerial accounting. Answer:
Financial accounting focuses on external reporting, while
managerial accounting focuses on internal decision-making.
◉ Focus of managerial accounting. Answer: Improving future results
based on an analysis of past performance.
◉ Characteristic of financial accounting reports. Answer: They
include monetary and nonmonetary information.
◉ Federal agency overseeing securities markets. Answer: Securities
and Exchange Commission (SEC)
,◉ Organization setting accounting standards in the U.S.. Answer:
Financial Accounting Standards Board (FASB)
◉ Purpose of the Public Company Accounting Oversight Board
(PCAOB). Answer: It oversees the audits of public companies to
protect investors.
◉ Suitable audit firm for multinational corporations. Answer: Big
Four
◉ Accounting formula represented by the income statement.
Answer: Not provided in the notes.
◉ Beginning retained earnings + net income - dividends. Answer:
Formula for calculating retained earnings.
◉ Current assets - current liabilities. Answer: Formula for
calculating working capital.
◉ Revenues - expenses. Answer: Formula for calculating net income.
, ◉ Operating expense on the income statement. Answer: The day-to-
day operational costs not associated with the direct selling of
products or services.
◉ Rent for office space. Answer: Reported as general and
administrative expenses on the income statement.
◉ Accrual basis of accounting. Answer: The income statement
reports profit or loss using this method.
◉ Income statement categories. Answer: They categorize revenue
based on operating and non-operating activities.
◉ $500 from selling products. Answer: Should be reported as
revenues on the income statement.
◉ Financial statements for profitability. Answer: Investors should
review the income statement to see if the company was profitable.
◉ $10,000 worth of cakes. Answer: Should be reported as revenue
on the income statement.
◉ Income decrease while revenue increases. Answer: Higher
expenses offset the revenue increase.
ACCOUNTING EXAM FINAL PAPER 2026
COMPLETE QUESTIONS WITH ANSWERS
GRADED A+
◉ Year of significant stock market crash. Answer: 1929
◉ Regulatory outcome of accounting scandals. Answer: The
Sarbanes-Oxley Act was introduced, requiring stricter financial
controls and oversight.
◉ Difference between financial and managerial accounting. Answer:
Financial accounting focuses on external reporting, while
managerial accounting focuses on internal decision-making.
◉ Focus of managerial accounting. Answer: Improving future results
based on an analysis of past performance.
◉ Characteristic of financial accounting reports. Answer: They
include monetary and nonmonetary information.
◉ Federal agency overseeing securities markets. Answer: Securities
and Exchange Commission (SEC)
,◉ Organization setting accounting standards in the U.S.. Answer:
Financial Accounting Standards Board (FASB)
◉ Purpose of the Public Company Accounting Oversight Board
(PCAOB). Answer: It oversees the audits of public companies to
protect investors.
◉ Suitable audit firm for multinational corporations. Answer: Big
Four
◉ Accounting formula represented by the income statement.
Answer: Not provided in the notes.
◉ Beginning retained earnings + net income - dividends. Answer:
Formula for calculating retained earnings.
◉ Current assets - current liabilities. Answer: Formula for
calculating working capital.
◉ Revenues - expenses. Answer: Formula for calculating net income.
, ◉ Operating expense on the income statement. Answer: The day-to-
day operational costs not associated with the direct selling of
products or services.
◉ Rent for office space. Answer: Reported as general and
administrative expenses on the income statement.
◉ Accrual basis of accounting. Answer: The income statement
reports profit or loss using this method.
◉ Income statement categories. Answer: They categorize revenue
based on operating and non-operating activities.
◉ $500 from selling products. Answer: Should be reported as
revenues on the income statement.
◉ Financial statements for profitability. Answer: Investors should
review the income statement to see if the company was profitable.
◉ $10,000 worth of cakes. Answer: Should be reported as revenue
on the income statement.
◉ Income decrease while revenue increases. Answer: Higher
expenses offset the revenue increase.
