WGU MBA PROGRAM C213 ACCOUNTING OA EXAM
LATEST VERSION ACTUAL EXAM 100 QUESTIONS AND
CORRECT DETAILED ANSWERS |ALREADY GRADED A+
Information included in Annual Report - ANSWER: Management discussion and
analysis (MD&A), notes to the financial statements, and an independent auditor's
report
Includes subjective estimates and opinions in annual report - ANSWER: MD&A
(Management discussion and analysis)
What does MD&A provide in annual report - ANSWER: Management's views on
company's ability to pay near-term obligations, its ability to fund operations and
expansion, and its result of operations
Auditor expresses an __________ if satisfied with company's financial statements
and in accordance with GAAP - ANSWER: Unqualified Opinion
Current Assets- examples - ANSWER: Cash, Accounts Receivable, Inventory, Prepaid
expenses
Long Term Assets- examples - ANSWER: Investments, PP&E (Fixed Assets),
Intangibles
GAAP - ANSWER: Generally Accepted Accounting Principles
FASB - ANSWER: Financial Accounting Standards Board
GASB - ANSWER: Governmental Accounting Standards Board
Maintaining and improving GAAP is the mission of - ANSWER: FASB and GASB
Internal users - ANSWER: Finance, marketing, human resources, management
External users - ANSWER: investors and creditors
Common stock - ANSWER: Amount paid by stockholders for shares
Purchase of resources a company needs to operate - ANSWER: Investing Activities
Common expenses - ANSWER: Cost of goods sold, selling expenses, marketing
expenses, admin expenses, interest expense, income tax expense
The two primary types of financial statements required are monitored by - ANSWER:
International Financial Reporting Standards (IFRS) and General Accepted Accounting
Principles (GAAP)
, Income statements reports revenues and expenses - ANSWER: Over a period of time
Time period for statement of retained earnings? - ANSWER: Same as time period for
income statement
Net Income from Income statement is used for - ANSWER: Ending balance in
retained earnings
Statement of Retained Earnings formula so to speak - ANSWER: Beginning Retained
Earnings
+Net Income
-Dividends
=Ending Retained Earnings
Ending Retained earnings number used for - ANSWER: Balance Sheet
Balance Sheet reports assets and claims to an asset. When? - ANSWER: At a specific
point in time
Annual Report always has - ANSWER: 1) Financial Statements
2) MD&A (MGMT Discussion and Analysis)
3) Notes to Financial Statements
4) Auditor's report- only by CPA
In annual report, what section highlights favorable or unfavorable trends and
identifies events and uncertainties - ANSWER: MD&A
Gross Profit - ANSWER: Revenues - Costs of Goods Sold
Return on Assets = - ANSWER: Operating Profit (Revenue-COGS-SG&A) / Total Assets
Return on Equity = - ANSWER: Net Income / Total Equity
Shareholders Equity = - ANSWER: Assets - Liabilities
Shareholders Equity is comprised of - ANSWER: Common Shares & Retained Earnings
Statement of Retained Earnings reports how - ANSWER: Net Income & Dividends
change Equity
Majority of changes in equity are due to - ANSWER: Generation and distribution of
profits
Equity = - ANSWER: Wealth due to owners
Equity formula = - ANSWER: Owners capital + Net Income Retained - Dividends
LATEST VERSION ACTUAL EXAM 100 QUESTIONS AND
CORRECT DETAILED ANSWERS |ALREADY GRADED A+
Information included in Annual Report - ANSWER: Management discussion and
analysis (MD&A), notes to the financial statements, and an independent auditor's
report
Includes subjective estimates and opinions in annual report - ANSWER: MD&A
(Management discussion and analysis)
What does MD&A provide in annual report - ANSWER: Management's views on
company's ability to pay near-term obligations, its ability to fund operations and
expansion, and its result of operations
Auditor expresses an __________ if satisfied with company's financial statements
and in accordance with GAAP - ANSWER: Unqualified Opinion
Current Assets- examples - ANSWER: Cash, Accounts Receivable, Inventory, Prepaid
expenses
Long Term Assets- examples - ANSWER: Investments, PP&E (Fixed Assets),
Intangibles
GAAP - ANSWER: Generally Accepted Accounting Principles
FASB - ANSWER: Financial Accounting Standards Board
GASB - ANSWER: Governmental Accounting Standards Board
Maintaining and improving GAAP is the mission of - ANSWER: FASB and GASB
Internal users - ANSWER: Finance, marketing, human resources, management
External users - ANSWER: investors and creditors
Common stock - ANSWER: Amount paid by stockholders for shares
Purchase of resources a company needs to operate - ANSWER: Investing Activities
Common expenses - ANSWER: Cost of goods sold, selling expenses, marketing
expenses, admin expenses, interest expense, income tax expense
The two primary types of financial statements required are monitored by - ANSWER:
International Financial Reporting Standards (IFRS) and General Accepted Accounting
Principles (GAAP)
, Income statements reports revenues and expenses - ANSWER: Over a period of time
Time period for statement of retained earnings? - ANSWER: Same as time period for
income statement
Net Income from Income statement is used for - ANSWER: Ending balance in
retained earnings
Statement of Retained Earnings formula so to speak - ANSWER: Beginning Retained
Earnings
+Net Income
-Dividends
=Ending Retained Earnings
Ending Retained earnings number used for - ANSWER: Balance Sheet
Balance Sheet reports assets and claims to an asset. When? - ANSWER: At a specific
point in time
Annual Report always has - ANSWER: 1) Financial Statements
2) MD&A (MGMT Discussion and Analysis)
3) Notes to Financial Statements
4) Auditor's report- only by CPA
In annual report, what section highlights favorable or unfavorable trends and
identifies events and uncertainties - ANSWER: MD&A
Gross Profit - ANSWER: Revenues - Costs of Goods Sold
Return on Assets = - ANSWER: Operating Profit (Revenue-COGS-SG&A) / Total Assets
Return on Equity = - ANSWER: Net Income / Total Equity
Shareholders Equity = - ANSWER: Assets - Liabilities
Shareholders Equity is comprised of - ANSWER: Common Shares & Retained Earnings
Statement of Retained Earnings reports how - ANSWER: Net Income & Dividends
change Equity
Majority of changes in equity are due to - ANSWER: Generation and distribution of
profits
Equity = - ANSWER: Wealth due to owners
Equity formula = - ANSWER: Owners capital + Net Income Retained - Dividends
