WGU D774 INTRODUCTION TO BUSINESS
ACCOUNTING EXAM CERTIFICATION
EVALUATION TEST 2026 FULL SOLUTION
QUESTIONS GRADED A+
◉ What do internal auditors do? Answer: Enhance financial integrity
by evaluating internal controls and proactively identifying
weaknesses
◉ What was an effect of the Sarbanes-Oxley Act? Answer:
Strengthened auditor independence and corporate accountability.
◉ Purpose of the Sarbanes-Oxley Act? Answer: Improve financial
transparency and reduce corporate fraud.
◉ Simple difference between financial and managerial accounting?
Answer: Financial accounting focuses on external reporting while
managerial accounting focuses on internal decision-making.
◉ Does managerial accounting need to comply with GAAP? Answer:
No
,◉ Celebrities that have an accounting degree Answer: Janet Jackson,
John Grisham, Simu Liu, & D'Lo Brown
◉ Which organization is responsible for creating and issuing the
financial accounting standards that form the foundation of generally
accepted accounting principles (GAAP) in the United States?
Answer: (FASB) Financial Accounting Standards Board
◉ How often are external financial accounting reports typically
published for stakeholders, such as investors and regulators?
Answer: Quarterly or Annually
◉ Which regulation requires the certification and documentation of
internal controls, including an auditor's issuance of an internal
report after evaluating those controls? Answer: Sarbanes-Oxley Act
◉ Who was the father of accounting? Answer: Luca Pacioli
◉ Formula for Net Income Answer: Revenue - Expenses
◉ Accrual Accounting is a method that... Answer: Records revenues
when earned and expenses when incurred, regardless of when cash
changes hands
, ◉ Cash basis accounting is a method that... Answer: Records
revenues WHEN cash is received and expenses WHEN cash is paid,
ignoring WHEN the money was earned or the service was provided
◉ Purpose of the income statement? Answer: Report a company's
revenues and expenses over a period of time
◉ 5 core components of an income statement Answer: Revenue,
expenses, gains, losses, and net income.
◉ Income statement is also called? Answer: Profit & loss statement
◉ What is the statement of owner's equity? Answer: Shows how the
equity (or value) of the organization has changed over time
◉ Owner's equity formula Answer: Beginning equity + investments -
Distributions = Ending Equity
◉ 3 core components of a balance sheet? Answer: Assets, liabilities,
& Equity
◉ Short-term vs long-term? Answer: Short term < 1 year , long term
> 1 year
ACCOUNTING EXAM CERTIFICATION
EVALUATION TEST 2026 FULL SOLUTION
QUESTIONS GRADED A+
◉ What do internal auditors do? Answer: Enhance financial integrity
by evaluating internal controls and proactively identifying
weaknesses
◉ What was an effect of the Sarbanes-Oxley Act? Answer:
Strengthened auditor independence and corporate accountability.
◉ Purpose of the Sarbanes-Oxley Act? Answer: Improve financial
transparency and reduce corporate fraud.
◉ Simple difference between financial and managerial accounting?
Answer: Financial accounting focuses on external reporting while
managerial accounting focuses on internal decision-making.
◉ Does managerial accounting need to comply with GAAP? Answer:
No
,◉ Celebrities that have an accounting degree Answer: Janet Jackson,
John Grisham, Simu Liu, & D'Lo Brown
◉ Which organization is responsible for creating and issuing the
financial accounting standards that form the foundation of generally
accepted accounting principles (GAAP) in the United States?
Answer: (FASB) Financial Accounting Standards Board
◉ How often are external financial accounting reports typically
published for stakeholders, such as investors and regulators?
Answer: Quarterly or Annually
◉ Which regulation requires the certification and documentation of
internal controls, including an auditor's issuance of an internal
report after evaluating those controls? Answer: Sarbanes-Oxley Act
◉ Who was the father of accounting? Answer: Luca Pacioli
◉ Formula for Net Income Answer: Revenue - Expenses
◉ Accrual Accounting is a method that... Answer: Records revenues
when earned and expenses when incurred, regardless of when cash
changes hands
, ◉ Cash basis accounting is a method that... Answer: Records
revenues WHEN cash is received and expenses WHEN cash is paid,
ignoring WHEN the money was earned or the service was provided
◉ Purpose of the income statement? Answer: Report a company's
revenues and expenses over a period of time
◉ 5 core components of an income statement Answer: Revenue,
expenses, gains, losses, and net income.
◉ Income statement is also called? Answer: Profit & loss statement
◉ What is the statement of owner's equity? Answer: Shows how the
equity (or value) of the organization has changed over time
◉ Owner's equity formula Answer: Beginning equity + investments -
Distributions = Ending Equity
◉ 3 core components of a balance sheet? Answer: Assets, liabilities,
& Equity
◉ Short-term vs long-term? Answer: Short term < 1 year , long term
> 1 year
