WGU - D774 Pre-assessment 2 With
Questions And Verified Answers
Historical period of increased accounting importance - correct answer <<<<<💕💕💕✔✔The
Industrial Revolution
Effect of Sarbanes-Oxley Act of 2002 - correct answer <<<<<💕💕💕✔✔It increased corporate
responsibility.
Using corporate credit card for personal expenses - correct answer <<<<<💕💕💕✔✔Fraud
Purpose of financial accounting - correct answer <<<<<💕💕💕✔✔Provides historical financial data
in standardized reports for external stakeholders
Feature of managerial accounting reports - correct answer <<<<<💕💕💕✔✔Tailored to meet
internal decision-makers' needs
Statement describing managerial accounting reports - correct answer <<<<<💕💕💕✔✔Prepared
for internal decision-making needs of management
SEC role in accounting standards - correct answer <<<<<💕💕💕✔✔Enforces financial reporting
rules established by the FASB
Certification to offer auditing/tax services - correct answer <<<<<💕💕💕✔✔CPA
Auditor buying stock in a company they audit - correct answer <<<<<💕💕💕✔✔Violates
independence and objectivity
Who oversees and maintains internal controls - correct answer <<<<<💕💕💕✔✔Management
, Manufacturing expense category on income statement - correct answer <<<<<💕💕💕✔✔Cost of
goods sold
Interpretation of net income - correct answer <<<<<💕💕💕✔✔Revenues are greater than
expenses
Limitation of accrual accounting - correct answer <<<<<💕💕💕✔✔May not reflect actual cash
flow
Effect of favorable volume variance - correct answer <<<<<💕💕💕✔✔Increases revenue and cost
of goods sold
Category for wages of store employees - correct answer <<<<<💕💕💕✔✔Cost of goods sold
Which statement tracks actual cash movement - correct answer <<<<<💕💕💕✔✔Statement of
cash flows
How to report flea market finds on balance sheet - correct answer <<<<<💕💕💕✔✔Assets
Trend shown by comparative income statements - correct answer <<<<<💕💕💕✔✔Changes in
profitability over time
Why is net income lower than revenue - correct answer <<<<<💕💕💕✔✔Expenses reduce total
amount earned
Why positive net income but low cash - correct answer <<<<<💕💕💕✔✔Non-cash expenses &
accrual accounting impact cash flow
Why $100k revenue but $85k receipts - correct answer <<<<<💕💕💕✔✔Customers have not yet
paid
Questions And Verified Answers
Historical period of increased accounting importance - correct answer <<<<<💕💕💕✔✔The
Industrial Revolution
Effect of Sarbanes-Oxley Act of 2002 - correct answer <<<<<💕💕💕✔✔It increased corporate
responsibility.
Using corporate credit card for personal expenses - correct answer <<<<<💕💕💕✔✔Fraud
Purpose of financial accounting - correct answer <<<<<💕💕💕✔✔Provides historical financial data
in standardized reports for external stakeholders
Feature of managerial accounting reports - correct answer <<<<<💕💕💕✔✔Tailored to meet
internal decision-makers' needs
Statement describing managerial accounting reports - correct answer <<<<<💕💕💕✔✔Prepared
for internal decision-making needs of management
SEC role in accounting standards - correct answer <<<<<💕💕💕✔✔Enforces financial reporting
rules established by the FASB
Certification to offer auditing/tax services - correct answer <<<<<💕💕💕✔✔CPA
Auditor buying stock in a company they audit - correct answer <<<<<💕💕💕✔✔Violates
independence and objectivity
Who oversees and maintains internal controls - correct answer <<<<<💕💕💕✔✔Management
, Manufacturing expense category on income statement - correct answer <<<<<💕💕💕✔✔Cost of
goods sold
Interpretation of net income - correct answer <<<<<💕💕💕✔✔Revenues are greater than
expenses
Limitation of accrual accounting - correct answer <<<<<💕💕💕✔✔May not reflect actual cash
flow
Effect of favorable volume variance - correct answer <<<<<💕💕💕✔✔Increases revenue and cost
of goods sold
Category for wages of store employees - correct answer <<<<<💕💕💕✔✔Cost of goods sold
Which statement tracks actual cash movement - correct answer <<<<<💕💕💕✔✔Statement of
cash flows
How to report flea market finds on balance sheet - correct answer <<<<<💕💕💕✔✔Assets
Trend shown by comparative income statements - correct answer <<<<<💕💕💕✔✔Changes in
profitability over time
Why is net income lower than revenue - correct answer <<<<<💕💕💕✔✔Expenses reduce total
amount earned
Why positive net income but low cash - correct answer <<<<<💕💕💕✔✔Non-cash expenses &
accrual accounting impact cash flow
Why $100k revenue but $85k receipts - correct answer <<<<<💕💕💕✔✔Customers have not yet
paid
