WGU D774 INTRO TO BUSINESS ACCOUNTING OBJECTIVE ASSESSMENT ELITE STUDY PAPER 100% CORRECT 2026

WGU D774 INTRO TO BUSINESS ACCOUNTING
OBJECTIVE ASSESSMENT
ELITE STUDY PAPER 100% CORRECT 2026

⩥ What was one type of dealing that contributed to the Great Wall Street
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Crash of 1929?. Answer: Operating pump and dump plans
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⩥ How can a company's financial statements be used to attract new
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investors?. Answer: By documenting past performance
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⩥ Who are the primary users of management accounting information?.
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Answer: Internal users
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⩥ Which time interval is covered by a balance sheet?. Answer: A snapshot
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prepared as of a specific date
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⩥ Who are the primary users of managerial accounting information?.
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Answer: Decision makers inside a company
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⩥ Why might one company's management accounting system differ from
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that of another company's?. Answer: Competitive needs
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,⩥ How does the Securities and Exchange Commission (SEC) influence
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accounting standard setting in the United States?. Answer: It establishes a
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complete set of accounting standards that compete with the Financial
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Accounting Standards Board rules.
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⩥ What is an initial public offering (IPO)?. Answer: The first issuance of
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ownership shares to the public
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⩥ Who selects a corporation's chief executive officer (CEO)?. Answer: Board
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of directors
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⩥ What are the two types of taxation corporations are subject to?.
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Answer: Income tax paid by the corporation and dividend income tax paid
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by individual shareholders
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⩥ How is gross profit computed?. Answer: Sales minus cost of goods sold
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⩥ Which item is reported among a company's operating expenses?. Answer:
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Wages and salary expense
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⩥ Which information is contained in gross margin?. Answer: The excess of the
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selling price of inventory over the purchase cost of inventory
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,⩥ What is the cost of buying products sold in a retail store called?. Answer:
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Cost of goods sold
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⩥ Which number is referred to as the bottom line of the income statement?.
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Answer: Net income
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⩥ How does net income impact the reported amount of a company's owners'
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equity?. Answer: Net income increases owners' equity.
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⩥ What is the largest expense for any retail company?. Answer: Cost of goods
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sold
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⩥ What is revenue?. Answer: Amount a company earns from the sale of goods
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and services
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⩥ Which item should be reported as an expense in the income statement?
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Disbursement for the monthly electricity bill, Receipts from customers, Loan
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proceeds from a bank, Funds used to purchase a new building.
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Answer: Disbursement for the monthly electricity bill
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⩥ What is an income statement?. Answer: Report of the revenues and
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expenses of a company during a period
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, ⩥ Which summary information does a balance sheet provide to a
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decision-maker?. Answer: Financial position of a company at a
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particular date
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⩥ Which items are liquid assets?. Answer: Cash and accounts receivable
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⩥ Why is cash usually the first asset listed in a balance sheet?. Answer: It is
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the most liquid.
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⩥ When a renter pays a landlord in advance, the landlord records the
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amount received as unearned revenue, a liability. Why is this rent received
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in advance considered to be a liability?. Answer: The landlord owes rental
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services to the tenant who has paid in advance.
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⩥ Which item is a liability?
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Accounts receivable, Dividends, Retained earnings, Unearned revenue.
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Answer: Unearned revenue
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⩥ What is a characteristic of a classified balance sheet?. Answer: It
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distinguishes between current and long-term liabilities.
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