WGU D774 Pre assessment 2 Exam Fully Solved &
Updated ( Latest Version Verified for Accuracy )
High Yield Questions and Answers | Solved 100%
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Historical period of increased accounting importance
ANS:<< The Industrial Revolution
Effect of Sarbanes-Oxley Act of 2002
ANS:<< It increased corporate responsibility.
Using corporate credit card for personal expenses
ANS:<< Fraud
Purpose of financial accounting
ANS:<< Provides historical financial data in standardized reports for external
stakeholders
Feature of managerial accounting reports
ANS:<< Tailored to meet internal decision-makers' needs
Statement describing managerial accounting reports
ANS:<< Prepared for internal decision-making needs of management
SEC role in accounting standards
ANS:<< Enforces financial reporting rules established by the FASB
Certification to offer auditing/tax services
ANS:<< CPA
Auditor buying stock in a company they audit
ANS:<< Violates independence and objectivity
,Who oversees and maintains internal controls
ANS:<< Management
Manufacturing expense category on income statement
ANS:<< Cost of goods sold
Interpretation of net income
ANS:<< Revenues are greater than expenses
Limitation of accrual accounting
ANS:<< May not reflect actual cash flow
Effect of favorable volume variance
ANS:<< Increases revenue and cost of goods sold
Category for wages of store employees
ANS:<< Cost of goods sold
Which statement tracks actual cash movement
ANS:<< Statement of cash flows
How to report flea market finds on balance sheet
ANS:<< Assets
Trend shown by comparative income statements
ANS:<< Changes in profitability over time
Why is net income lower than revenue
ANS:<< Expenses reduce total amount earned
Why positive net income but low cash
ANS:<< Non-cash expenses & accrual accounting impact cash flow
Why $100k revenue but $85k receipts
ANS:<< Customers have not yet paid
Limitation of the balance sheet
ANS:<< Does not include future performance
Stock issuance increases which equity category
,ANS:<< Paid-in capital
Why are raw materials assets
ANS:<< They have future economic value
Balance sheet limitation shown by missing legal obligations
ANS:<< May not account for contingent liabilities
Where record $350 owed to farmer
ANS:<< Short-term liability
Building purchased is what type of asset
ANS:<< Long-term tangible asset
Yellow Leaf Bookstore owners' equity balance
ANS:<< $36,000
Accrual basis — which sale recorded today
ANS:<< Recording a $500 sale today with cash collected in 30 days
Insurance policy purchase is in which cash flow section
ANS:<< Operating activities
Purchase of new plant building goes where
ANS:<< Investing activities
Sale of $35,000 of stock for cash goes where
ANS:<< Financing activities
Issuing bonds & paying dividends are what category
ANS:<< Financing activities
Cash received from selling $135 of products is what
ANS:<< Cash inflow under operating activities
Cash inflow from investing activities
ANS:<< Cash received from sale of long-term investment
Relationship between owners' equity & balance sheet
ANS:<< Ending owners' equity becomes equity section of balance sheet
, Limitation of incremental budgeting
ANS:<< Overlooks inefficiencies
Budgeting limitation when expenses change unexpectedly
ANS:<< Lacks flexibility
Limitation of incremental budgeting on strategy
ANS:<< No alignment with changing organizational objectives
Effect of inflation on incremental budgets
ANS:<< Increases occur automatically without performance evaluation
What is carried over in incremental budgeting
ANS:<< Past year's actual performance
Bottom-up incremental budgeting
ANS:<< Budgeting that starts with plant managers
Limitation of incremental vs zero-based budgeting
ANS:<< May carry over inefficiencies without review
Strategy for managing non-peak expenses in ZBB
ANS:<< Allocate extra money into a savings fund for irregular costs
First step in zero-based budgeting
ANS:<< Identifying and categorizing all expected expenses
Why ZBB may reduce spending on non-urgent programs
ANS:<< Hard-to-justify areas get cut short-term
Total revenue variance
ANS:<< $2,400 unfavorable due to unfavorable volume variance
Limitation of trend analysis
ANS:<< Assumes past trends will continue without disruption
Why trend analysis is important
ANS:<< Helps identify opportunities and anticipate threats
Why variance analysis is important
Updated ( Latest Version Verified for Accuracy )
High Yield Questions and Answers | Solved 100%
Correct | Frequently Most Tested Questions |
Expert Guarantee Pass | Newest Version!!!
Historical period of increased accounting importance
ANS:<< The Industrial Revolution
Effect of Sarbanes-Oxley Act of 2002
ANS:<< It increased corporate responsibility.
Using corporate credit card for personal expenses
ANS:<< Fraud
Purpose of financial accounting
ANS:<< Provides historical financial data in standardized reports for external
stakeholders
Feature of managerial accounting reports
ANS:<< Tailored to meet internal decision-makers' needs
Statement describing managerial accounting reports
ANS:<< Prepared for internal decision-making needs of management
SEC role in accounting standards
ANS:<< Enforces financial reporting rules established by the FASB
Certification to offer auditing/tax services
ANS:<< CPA
Auditor buying stock in a company they audit
ANS:<< Violates independence and objectivity
,Who oversees and maintains internal controls
ANS:<< Management
Manufacturing expense category on income statement
ANS:<< Cost of goods sold
Interpretation of net income
ANS:<< Revenues are greater than expenses
Limitation of accrual accounting
ANS:<< May not reflect actual cash flow
Effect of favorable volume variance
ANS:<< Increases revenue and cost of goods sold
Category for wages of store employees
ANS:<< Cost of goods sold
Which statement tracks actual cash movement
ANS:<< Statement of cash flows
How to report flea market finds on balance sheet
ANS:<< Assets
Trend shown by comparative income statements
ANS:<< Changes in profitability over time
Why is net income lower than revenue
ANS:<< Expenses reduce total amount earned
Why positive net income but low cash
ANS:<< Non-cash expenses & accrual accounting impact cash flow
Why $100k revenue but $85k receipts
ANS:<< Customers have not yet paid
Limitation of the balance sheet
ANS:<< Does not include future performance
Stock issuance increases which equity category
,ANS:<< Paid-in capital
Why are raw materials assets
ANS:<< They have future economic value
Balance sheet limitation shown by missing legal obligations
ANS:<< May not account for contingent liabilities
Where record $350 owed to farmer
ANS:<< Short-term liability
Building purchased is what type of asset
ANS:<< Long-term tangible asset
Yellow Leaf Bookstore owners' equity balance
ANS:<< $36,000
Accrual basis — which sale recorded today
ANS:<< Recording a $500 sale today with cash collected in 30 days
Insurance policy purchase is in which cash flow section
ANS:<< Operating activities
Purchase of new plant building goes where
ANS:<< Investing activities
Sale of $35,000 of stock for cash goes where
ANS:<< Financing activities
Issuing bonds & paying dividends are what category
ANS:<< Financing activities
Cash received from selling $135 of products is what
ANS:<< Cash inflow under operating activities
Cash inflow from investing activities
ANS:<< Cash received from sale of long-term investment
Relationship between owners' equity & balance sheet
ANS:<< Ending owners' equity becomes equity section of balance sheet
, Limitation of incremental budgeting
ANS:<< Overlooks inefficiencies
Budgeting limitation when expenses change unexpectedly
ANS:<< Lacks flexibility
Limitation of incremental budgeting on strategy
ANS:<< No alignment with changing organizational objectives
Effect of inflation on incremental budgets
ANS:<< Increases occur automatically without performance evaluation
What is carried over in incremental budgeting
ANS:<< Past year's actual performance
Bottom-up incremental budgeting
ANS:<< Budgeting that starts with plant managers
Limitation of incremental vs zero-based budgeting
ANS:<< May carry over inefficiencies without review
Strategy for managing non-peak expenses in ZBB
ANS:<< Allocate extra money into a savings fund for irregular costs
First step in zero-based budgeting
ANS:<< Identifying and categorizing all expected expenses
Why ZBB may reduce spending on non-urgent programs
ANS:<< Hard-to-justify areas get cut short-term
Total revenue variance
ANS:<< $2,400 unfavorable due to unfavorable volume variance
Limitation of trend analysis
ANS:<< Assumes past trends will continue without disruption
Why trend analysis is important
ANS:<< Helps identify opportunities and anticipate threats
Why variance analysis is important
