WGU D196 STUDY GUIDE QUESTIONS AND
ANSWERS
What is accounting's function and goal? ANSWER Accounting is used to
gather, quantify, and share financial data about businesses. Making well-
informed decisions about the allocation and utilization of resources is made
possible by this knowledge.
Why and by whom is accounting data used? ANSWER Internal decision-
making by managers, CEOs, supervisors, and others is known as managerial
accounting.
Benefits to external users (investors, stakeholders, tax authorities, etc.) of
financial accounting
Which factors have a significant impact on accounting? ANSWER The FASB
in the United States and the IASB globally developed GAAP. ethical and
international commercial considerations.
What part does ethics play in accounting? ANSWER The public views
accountants as making sure that financial information is not misrepresented.
What is the purpose of the PCAOB? ANSWER The Public Company
Accounting Oversight Board, or PCAOB, is in charge of public company audits.
established by the SEC to rebuild public trust following the enactment of the
Sarbanes Oxley Act in 2002.
Describe the accounting cycle. 1. Examine the transactions.
2. Document the impact of transactions
3. List the results of the transactions.
3a. Write journal entries
3. Get the trial balance ready.
4. Create financial summaries
4a. Modify journal entries
4b. Compile financial records
ANSWERS
What is accounting's function and goal? ANSWER Accounting is used to
gather, quantify, and share financial data about businesses. Making well-
informed decisions about the allocation and utilization of resources is made
possible by this knowledge.
Why and by whom is accounting data used? ANSWER Internal decision-
making by managers, CEOs, supervisors, and others is known as managerial
accounting.
Benefits to external users (investors, stakeholders, tax authorities, etc.) of
financial accounting
Which factors have a significant impact on accounting? ANSWER The FASB
in the United States and the IASB globally developed GAAP. ethical and
international commercial considerations.
What part does ethics play in accounting? ANSWER The public views
accountants as making sure that financial information is not misrepresented.
What is the purpose of the PCAOB? ANSWER The Public Company
Accounting Oversight Board, or PCAOB, is in charge of public company audits.
established by the SEC to rebuild public trust following the enactment of the
Sarbanes Oxley Act in 2002.
Describe the accounting cycle. 1. Examine the transactions.
2. Document the impact of transactions
3. List the results of the transactions.
3a. Write journal entries
3. Get the trial balance ready.
4. Create financial summaries
4a. Modify journal entries
4b. Compile financial records
