WGU D196 OA AND PRE ASSESSMENT
TESTBANK EXAM 2024-2025 ACTUAL
EXAM 2 VERSIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
WGU D196 OA
How is it possible for an accountant to intentionally
deceive financial statement users and yet still
technically be in compliance with generally accepted
accounting principles (GAAP)? - ....ANSWER...There is
flexibility inherent in the assumptions underlying the
preparation of financial statements.
Your boss approaches you with a concerning letter
from the IRS and asks you to explain the role of the
IRS in regulating accounting standards. Based on the
role of the IRS, what could be the problem detailed
in the letter? - ....ANSWER...The company has not
filed its taxes in accordance with the law.
,Anika is considering investing in a tech company that
is known for developing smart home appliances.
Before investing, Anika first wants to ensure that the
company's past financial performance has been
satisfactory and that the company manages its cash
flows well. What type of accounting information
would provide this evidence for Anika? -
....ANSWER...Financial reports
Alliah Company just released its public accounting
data for 20X9. Which user of accounting information
will monitor this data to ensure that the company is
providing sufficient information for investors? -
....ANSWER...Government agencies
A new product line manager approaches the
accounting department in order to understand the
past performance of the product line he has been
asked to manage in the future. Which role of
accounting involves obtaining and using financial
information to determine the financial health and
performance of a business or product line? -
....ANSWER...Evaluation
You read in the newspaper that a local company you
are familiar with has been found guilty in court of
,publishing financial statements that are false and
misleading to users of those financial statements. In
this situation, what could the American Institute of
Certified Public Accountants (AICPA) do in response
to the accountants who were found guilty of
unethical conduct in accounting practices? -
....ANSWER...Implement professional sanctions
What is the correct summary sequence in the
accounting cycle? - ....ANSWER...Analyze, Record,
Summarize, Prepare
Business documents, such as a sales invoice, a
purchase order, or a check stub, are an important
part of the accounting process. From an accounting
cycle standpoint, what is purpose of business
documents? - ....ANSWER...To confirm that a
transaction has occurred
What is the purpose of the financial accounting
cycle? - ....ANSWER...To turn transactions into
financial statements and provide useful financial
information for decision makers
, What is a transaction in accounting? -
....ANSWER...An interaction in which two parties
exchange something of value
In the context of the financial accounting cycle, what
is the definition of an account? - ....ANSWER...A
specific accounting record that provides an efficient
way to categorize similar types of transactions
What is an arm's-length transaction? -
....ANSWER...An exchange between two independent
parties
Which event represents a transaction recorded as
part of the financial accounting cycle? -
....ANSWER...The sale of a product for cash or on
account
A company sells a product to a customer on account.
Which part(s) of the accounting equation does this
particular transaction change? - ....ANSWER...Both
assets and owners' equity
TESTBANK EXAM 2024-2025 ACTUAL
EXAM 2 VERSIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
WGU D196 OA
How is it possible for an accountant to intentionally
deceive financial statement users and yet still
technically be in compliance with generally accepted
accounting principles (GAAP)? - ....ANSWER...There is
flexibility inherent in the assumptions underlying the
preparation of financial statements.
Your boss approaches you with a concerning letter
from the IRS and asks you to explain the role of the
IRS in regulating accounting standards. Based on the
role of the IRS, what could be the problem detailed
in the letter? - ....ANSWER...The company has not
filed its taxes in accordance with the law.
,Anika is considering investing in a tech company that
is known for developing smart home appliances.
Before investing, Anika first wants to ensure that the
company's past financial performance has been
satisfactory and that the company manages its cash
flows well. What type of accounting information
would provide this evidence for Anika? -
....ANSWER...Financial reports
Alliah Company just released its public accounting
data for 20X9. Which user of accounting information
will monitor this data to ensure that the company is
providing sufficient information for investors? -
....ANSWER...Government agencies
A new product line manager approaches the
accounting department in order to understand the
past performance of the product line he has been
asked to manage in the future. Which role of
accounting involves obtaining and using financial
information to determine the financial health and
performance of a business or product line? -
....ANSWER...Evaluation
You read in the newspaper that a local company you
are familiar with has been found guilty in court of
,publishing financial statements that are false and
misleading to users of those financial statements. In
this situation, what could the American Institute of
Certified Public Accountants (AICPA) do in response
to the accountants who were found guilty of
unethical conduct in accounting practices? -
....ANSWER...Implement professional sanctions
What is the correct summary sequence in the
accounting cycle? - ....ANSWER...Analyze, Record,
Summarize, Prepare
Business documents, such as a sales invoice, a
purchase order, or a check stub, are an important
part of the accounting process. From an accounting
cycle standpoint, what is purpose of business
documents? - ....ANSWER...To confirm that a
transaction has occurred
What is the purpose of the financial accounting
cycle? - ....ANSWER...To turn transactions into
financial statements and provide useful financial
information for decision makers
, What is a transaction in accounting? -
....ANSWER...An interaction in which two parties
exchange something of value
In the context of the financial accounting cycle, what
is the definition of an account? - ....ANSWER...A
specific accounting record that provides an efficient
way to categorize similar types of transactions
What is an arm's-length transaction? -
....ANSWER...An exchange between two independent
parties
Which event represents a transaction recorded as
part of the financial accounting cycle? -
....ANSWER...The sale of a product for cash or on
account
A company sells a product to a customer on account.
Which part(s) of the accounting equation does this
particular transaction change? - ....ANSWER...Both
assets and owners' equity
