WGU D196 ACCOUNTING EXAM QUESTIONS WITH
CORRECT ANSWERS
Which of the following types of accounting is primarily responsible for the
preparation of reports for internal users? - ANSWER Management Accounting
What is the IASB's role in terms of the regulation of accounting standards? -
ANSWER To establish international accounting standards
What kinds of individuals comprise the FASB? - ANSWER Individuals from a
variety of business-related backgrounds
What is the role of the GASB in setting accounting standards? - ANSWER
GASB is a private sector organization that establishes standards of accounting
and financial reporting for state and local governmental entities in the United
States.
A new product line manager visits the accounting department to gain an
understanding of the past performance of the product line he will be managing
going forward. 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 the newspaper and find that a local company you know has been
found guilty in court for publishing financial statements that are misleading and
false to the users of the financial statements. In a case like this, what can the
AICPA do to the accountants who have been found guilty of unethical conduct
relative to accounting practices? - ANSWER Impose professional sanctions
, Accounting cycle, account balances are prepared and financial statements are
prepared in what sequence? - ANSWER Analyze, Record, Summarize, Prepare
What is the purpose of financial accounting cycle? - ANSWER to transform
transactions into useful financial statements/information to decision makers
What is a transaction? - ANSWER Exchange between two parties, the
exchange of things of value
What does the term account mean as it relates to the financial accounting cycle?
- ANSWER A unique accounting record that provides a way of accumulating
and storing 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
After Oliver posts each transaction, what does he need to do to make sure the
accounting equation is still balanced? - ANSWER Add up the balances in all
of the asset accounts and compare to the sum of all the liability and owners'
equity accounts
CORRECT ANSWERS
Which of the following types of accounting is primarily responsible for the
preparation of reports for internal users? - ANSWER Management Accounting
What is the IASB's role in terms of the regulation of accounting standards? -
ANSWER To establish international accounting standards
What kinds of individuals comprise the FASB? - ANSWER Individuals from a
variety of business-related backgrounds
What is the role of the GASB in setting accounting standards? - ANSWER
GASB is a private sector organization that establishes standards of accounting
and financial reporting for state and local governmental entities in the United
States.
A new product line manager visits the accounting department to gain an
understanding of the past performance of the product line he will be managing
going forward. 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 the newspaper and find that a local company you know has been
found guilty in court for publishing financial statements that are misleading and
false to the users of the financial statements. In a case like this, what can the
AICPA do to the accountants who have been found guilty of unethical conduct
relative to accounting practices? - ANSWER Impose professional sanctions
, Accounting cycle, account balances are prepared and financial statements are
prepared in what sequence? - ANSWER Analyze, Record, Summarize, Prepare
What is the purpose of financial accounting cycle? - ANSWER to transform
transactions into useful financial statements/information to decision makers
What is a transaction? - ANSWER Exchange between two parties, the
exchange of things of value
What does the term account mean as it relates to the financial accounting cycle?
- ANSWER A unique accounting record that provides a way of accumulating
and storing 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
After Oliver posts each transaction, what does he need to do to make sure the
accounting equation is still balanced? - ANSWER Add up the balances in all
of the asset accounts and compare to the sum of all the liability and owners'
equity accounts
