WGU D774 OBJECTIVE
ASSESSEMENT FINAL VERSION 2
/WGU D774 INTRODUCTION TO
BUSINESS OA EXAM
Ancient Mesopotamia - CORRECT ANSWERWhich ancient civilization dates to the early development of
accounting?
1929 - CORRECT ANSWERWhich year is associated with the stock market crash?
Sarbanes-Oxley Act - CORRECT ANSWERRegulatory outcome of Enron/WorldCom/Tyco scandals?
Financial accounting - CORRECT ANSWERExternal reporting
Managerial accounting - CORRECT ANSWERInternal decision-making
Focus of managerial accounting - CORRECT ANSWERImproving future results using past performance
Financial accounting characteristic for annual reports - CORRECT ANSWERIncludes monetary &
nonmonetary information
SEC - CORRECT ANSWERWhich federal agency oversees stock market filings?
FASB - CORRECT ANSWEROrganization that sets GAAP standards?
PCAOB - CORRECT ANSWERPurpose of PCAOB?
,Big Four - CORRECT ANSWERBest audit firm type for a multinational public company?
Income statement formula - CORRECT ANSWERRevenues − Expenses
Operating expense - CORRECT ANSWERDay-to-day operational costs not directly tied to selling
General & administrative expenses - CORRECT ANSWERRent expense category?
Income statement - CORRECT ANSWERWhich statement reports profit/loss on accrual?
Income statement handling - CORRECT ANSWERCategorizes revenue into operating & non-operating
$500 product sale - CORRECT ANSWERGoes to Revenue
$10,000 cake sales - CORRECT ANSWERWhere does it appear? Revenue
Income decrease while revenue increases - CORRECT ANSWERHigher expenses offset revenue
High revenue but low net income - CORRECT ANSWERExpenses reduced profitability
Multiple-step income statement - CORRECT ANSWERWhich statement shows gross margin?
Balance sheet - CORRECT ANSWERWhich statement shows amounts owed to suppliers?
Long-term assets total - CORRECT ANSWER$130,000
Sales cash on balance sheet - CORRECT ANSWERGoes to Assets
, Legal protection for software program - CORRECT ANSWERPatent
Brand name/logo classification - CORRECT ANSWERIntangible asset
Owners' equity balance - CORRECT ANSWER$2,500,000
Paying accounts payable - CORRECT ANSWERLiability decreases
Accrual basis - CORRECT ANSWERBasis of accounting recognizing revenue when sold (even if paid later)?
Cash basis - CORRECT ANSWERRevenue recorded at collection date indicates which basis?
Step ensuring cash flow sections match cash change - CORRECT ANSWERReconcile net cash flows to cash
balance change
Investor's $5,000 for shares - CORRECT ANSWERWhere is it reported? Financing activities
Operating cash flow transaction - CORRECT ANSWERCash sale of inventory
Financing cash flow transaction - CORRECT ANSWERRepayment of bank debt
Why operating cash flow is critical - CORRECT ANSWERShows ability to generate cash from core
operations
Which report needs net income - CORRECT ANSWERIncome statement
Statement of owners' equity - CORRECT ANSWERA financial statement that summarizes the changes in
equity from transactions with owners.
Which balance is reconciled on cash flow statement? - CORRECT ANSWERCash
ASSESSEMENT FINAL VERSION 2
/WGU D774 INTRODUCTION TO
BUSINESS OA EXAM
Ancient Mesopotamia - CORRECT ANSWERWhich ancient civilization dates to the early development of
accounting?
1929 - CORRECT ANSWERWhich year is associated with the stock market crash?
Sarbanes-Oxley Act - CORRECT ANSWERRegulatory outcome of Enron/WorldCom/Tyco scandals?
Financial accounting - CORRECT ANSWERExternal reporting
Managerial accounting - CORRECT ANSWERInternal decision-making
Focus of managerial accounting - CORRECT ANSWERImproving future results using past performance
Financial accounting characteristic for annual reports - CORRECT ANSWERIncludes monetary &
nonmonetary information
SEC - CORRECT ANSWERWhich federal agency oversees stock market filings?
FASB - CORRECT ANSWEROrganization that sets GAAP standards?
PCAOB - CORRECT ANSWERPurpose of PCAOB?
,Big Four - CORRECT ANSWERBest audit firm type for a multinational public company?
Income statement formula - CORRECT ANSWERRevenues − Expenses
Operating expense - CORRECT ANSWERDay-to-day operational costs not directly tied to selling
General & administrative expenses - CORRECT ANSWERRent expense category?
Income statement - CORRECT ANSWERWhich statement reports profit/loss on accrual?
Income statement handling - CORRECT ANSWERCategorizes revenue into operating & non-operating
$500 product sale - CORRECT ANSWERGoes to Revenue
$10,000 cake sales - CORRECT ANSWERWhere does it appear? Revenue
Income decrease while revenue increases - CORRECT ANSWERHigher expenses offset revenue
High revenue but low net income - CORRECT ANSWERExpenses reduced profitability
Multiple-step income statement - CORRECT ANSWERWhich statement shows gross margin?
Balance sheet - CORRECT ANSWERWhich statement shows amounts owed to suppliers?
Long-term assets total - CORRECT ANSWER$130,000
Sales cash on balance sheet - CORRECT ANSWERGoes to Assets
, Legal protection for software program - CORRECT ANSWERPatent
Brand name/logo classification - CORRECT ANSWERIntangible asset
Owners' equity balance - CORRECT ANSWER$2,500,000
Paying accounts payable - CORRECT ANSWERLiability decreases
Accrual basis - CORRECT ANSWERBasis of accounting recognizing revenue when sold (even if paid later)?
Cash basis - CORRECT ANSWERRevenue recorded at collection date indicates which basis?
Step ensuring cash flow sections match cash change - CORRECT ANSWERReconcile net cash flows to cash
balance change
Investor's $5,000 for shares - CORRECT ANSWERWhere is it reported? Financing activities
Operating cash flow transaction - CORRECT ANSWERCash sale of inventory
Financing cash flow transaction - CORRECT ANSWERRepayment of bank debt
Why operating cash flow is critical - CORRECT ANSWERShows ability to generate cash from core
operations
Which report needs net income - CORRECT ANSWERIncome statement
Statement of owners' equity - CORRECT ANSWERA financial statement that summarizes the changes in
equity from transactions with owners.
Which balance is reconciled on cash flow statement? - CORRECT ANSWERCash
