WGU D774 INTRODUCTION TO BUSINESS
ACCOUNTING EXAM QUESTIONS AND ANSWERS
1. What is the Sarbanes-Oxley Act?
An act of U.S. Congress passed in 1956, during the
height of the Cold War, banning exchange of financial
information with Soviet companies
-A law passed in 2002 that imposed new regulations -on
both businesses and accounting firms
-A set of securities market regulations adopted in 1934
in response to the Great Depression
-A federal regulation released in 2008 outlawing pump-
and-dump schemes: A law passed in 2002 that imposed new regulations
on both businesses and accounting firms
2. What led to the passage of the Dodd-Frank Act?
-Release of computerized computer packages for
double-entry accounting
-Bursting of the dot-com bubble caused by investor
overoptimism
,-Excessive risk-taking by banks and other financial
institutions
-Pump-and-dump schemes operated by Wall Street
investment banks: Excessive risk-taking by banks and other financial
institutions
3. How did the Industrial Revolution lead to increased
importance of reliable financial statements?
-Through the creation of a greater need for investment
capital
-Through the invention of computers for better
information processing
-Through the legalization of banks and accounting firms
-Through the development of the internet and the need
for rapid data trans-mission: Through the creation of a greater need
for investment capital
4. What contributed to the need for accounting in Egypt
5,000 years ago?
-Military defense
-Taxation
-Astronomy
-Architecture: Taxation
5. Which U.S. regulatory agency is tasked with making sure
that investors have all necessary information with respect
to the risks and returns associated with an investment in
a publicly traded company?
,-Sarbanes-Oxley Trading Union (SOTU)
-Federal Trade Commission (FTC)
, -Financial Accounting Standards Board (FASB)
-Securities and Exchange Commission (SEC): Securities and
Exchange Commission (SEC)
6. An act that imposed new regulations on both
businesses and accounting firms in 2002: Sarbanes-Oxley
7. Person who must personally attest to the accuracy
and fairness of their company's financial statements:
CEO
8. An act that was passed in 2008 because of excessive
risk-taking by banks: -
Dodd-Frank
9. Nation/empire that used a taxation system 5,000 years
ago: Egypt
10. Country of residence of the monk/mathematician who
developed the dou-ble-entry accounting system: Italy
11. Major economic event that followed soon after the
Stock Market Crash of 1929: Depression
12. Father of Accounting: Luca Pacioli
13. Regulatory agency created to restore confidence in
the financial markets after the Great Stock Market Crash:
SEC
14. What was significant about the years 2007 and 2008
that led to the passage of the Dodd-Frank Act?
-They saw the invention of the internet and the initial
ACCOUNTING EXAM QUESTIONS AND ANSWERS
1. What is the Sarbanes-Oxley Act?
An act of U.S. Congress passed in 1956, during the
height of the Cold War, banning exchange of financial
information with Soviet companies
-A law passed in 2002 that imposed new regulations -on
both businesses and accounting firms
-A set of securities market regulations adopted in 1934
in response to the Great Depression
-A federal regulation released in 2008 outlawing pump-
and-dump schemes: A law passed in 2002 that imposed new regulations
on both businesses and accounting firms
2. What led to the passage of the Dodd-Frank Act?
-Release of computerized computer packages for
double-entry accounting
-Bursting of the dot-com bubble caused by investor
overoptimism
,-Excessive risk-taking by banks and other financial
institutions
-Pump-and-dump schemes operated by Wall Street
investment banks: Excessive risk-taking by banks and other financial
institutions
3. How did the Industrial Revolution lead to increased
importance of reliable financial statements?
-Through the creation of a greater need for investment
capital
-Through the invention of computers for better
information processing
-Through the legalization of banks and accounting firms
-Through the development of the internet and the need
for rapid data trans-mission: Through the creation of a greater need
for investment capital
4. What contributed to the need for accounting in Egypt
5,000 years ago?
-Military defense
-Taxation
-Astronomy
-Architecture: Taxation
5. Which U.S. regulatory agency is tasked with making sure
that investors have all necessary information with respect
to the risks and returns associated with an investment in
a publicly traded company?
,-Sarbanes-Oxley Trading Union (SOTU)
-Federal Trade Commission (FTC)
, -Financial Accounting Standards Board (FASB)
-Securities and Exchange Commission (SEC): Securities and
Exchange Commission (SEC)
6. An act that imposed new regulations on both
businesses and accounting firms in 2002: Sarbanes-Oxley
7. Person who must personally attest to the accuracy
and fairness of their company's financial statements:
CEO
8. An act that was passed in 2008 because of excessive
risk-taking by banks: -
Dodd-Frank
9. Nation/empire that used a taxation system 5,000 years
ago: Egypt
10. Country of residence of the monk/mathematician who
developed the dou-ble-entry accounting system: Italy
11. Major economic event that followed soon after the
Stock Market Crash of 1929: Depression
12. Father of Accounting: Luca Pacioli
13. Regulatory agency created to restore confidence in
the financial markets after the Great Stock Market Crash:
SEC
14. What was significant about the years 2007 and 2008
that led to the passage of the Dodd-Frank Act?
-They saw the invention of the internet and the initial
