WGU D196- Principles of Financial and
Managerial Accounting UPDATED ACTUAL
Exam Questions and CORRECT Answers
bookkeeping - CORRECT ANSWER - day to day keeping of transcations
steps of decision making - CORRECT ANSWER - identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - CORRECT ANSWER - analysis of events
record and report financial effects of business activities
where does capital come from (3) - CORRECT ANSWER - investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - CORRECT ANSWER - financial and managerial
managerial accounting - CORRECT ANSWER - gather and analysis of information for
internal use and decision making.
financial accounting - CORRECT ANSWER - gather, report, analysis of information for
external users- investors and creditors. summary of a business
what does managerial accounting review - CORRECT ANSWER - product cost,
breakeven analysis, budgeting, performance analysis, outsource production
,what does financial accounting review - CORRECT ANSWER - credit analysis, financial
health, estimate value of the company
examples of external financial reports for financial accounting - CORRECT ANSWER -
annual report, financial statement, balance sheet, income statement, statement of cash flow
balance sheet - CORRECT ANSWER - reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - CORRECT ANSWER - how much did you ,ake
period of time - from nov to jan
statement of cash flow - CORRECT ANSWER - where did the cash come from and where
did the cash go
period of time - from nov to jan
lender - CORRECT ANSWER - lends money with intend to get it back plus interest. need
current income, existing obligations, existing assets, payroll stub, tax return, monthly payments,
bank stmts
investor - CORRECT ANSWER - buys into your company. looks at if the business is
profitable, what they are buying, buying obligations, potential future projections
what forms will the manager of a business use - CORRECT ANSWER - both financial and
managerial
fasb- what does it stand for, who are they and what do they do - CORRECT ANSWER -
financial accounting standards board
, private group, not govt agency, no legal authority, conducted of people from a variety of business
related backgrounds.
establishes financial accounting and reporting standards for private sector companies
1 of the two boards that make up GAAP
gasb- what does it stand for, who are they, what do they do - CORRECT ANSWER -
governmental accounting standards board
sets accounting and financial reporting standards for state and legal governments.
authority over financial reporting by government entities
1 of the two boards that make up GAAP
gaap - CORRECT ANSWER - generally accepted accounting principles
sec - CORRECT ANSWER - Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair information about publicly
traded companies.
legal punishment
iasb - CORRECT ANSWER - International Accounting Standards Board
develop international accounting standards. made up of members from many countries
aicpa - CORRECT ANSWER - american institute of certified public accountants
administers the cpa exam.
enforces professional sanction by taking away cpa license when acted unethically.
role and purpose of accounting - CORRECT ANSWER - accumulate and report on
financial information about performance, financial position, cash flow of a business. used to
reach decisions about how to manage the business, invest in it, or lend money to it
Managerial Accounting UPDATED ACTUAL
Exam Questions and CORRECT Answers
bookkeeping - CORRECT ANSWER - day to day keeping of transcations
steps of decision making - CORRECT ANSWER - identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - CORRECT ANSWER - analysis of events
record and report financial effects of business activities
where does capital come from (3) - CORRECT ANSWER - investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - CORRECT ANSWER - financial and managerial
managerial accounting - CORRECT ANSWER - gather and analysis of information for
internal use and decision making.
financial accounting - CORRECT ANSWER - gather, report, analysis of information for
external users- investors and creditors. summary of a business
what does managerial accounting review - CORRECT ANSWER - product cost,
breakeven analysis, budgeting, performance analysis, outsource production
,what does financial accounting review - CORRECT ANSWER - credit analysis, financial
health, estimate value of the company
examples of external financial reports for financial accounting - CORRECT ANSWER -
annual report, financial statement, balance sheet, income statement, statement of cash flow
balance sheet - CORRECT ANSWER - reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - CORRECT ANSWER - how much did you ,ake
period of time - from nov to jan
statement of cash flow - CORRECT ANSWER - where did the cash come from and where
did the cash go
period of time - from nov to jan
lender - CORRECT ANSWER - lends money with intend to get it back plus interest. need
current income, existing obligations, existing assets, payroll stub, tax return, monthly payments,
bank stmts
investor - CORRECT ANSWER - buys into your company. looks at if the business is
profitable, what they are buying, buying obligations, potential future projections
what forms will the manager of a business use - CORRECT ANSWER - both financial and
managerial
fasb- what does it stand for, who are they and what do they do - CORRECT ANSWER -
financial accounting standards board
, private group, not govt agency, no legal authority, conducted of people from a variety of business
related backgrounds.
establishes financial accounting and reporting standards for private sector companies
1 of the two boards that make up GAAP
gasb- what does it stand for, who are they, what do they do - CORRECT ANSWER -
governmental accounting standards board
sets accounting and financial reporting standards for state and legal governments.
authority over financial reporting by government entities
1 of the two boards that make up GAAP
gaap - CORRECT ANSWER - generally accepted accounting principles
sec - CORRECT ANSWER - Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair information about publicly
traded companies.
legal punishment
iasb - CORRECT ANSWER - International Accounting Standards Board
develop international accounting standards. made up of members from many countries
aicpa - CORRECT ANSWER - american institute of certified public accountants
administers the cpa exam.
enforces professional sanction by taking away cpa license when acted unethically.
role and purpose of accounting - CORRECT ANSWER - accumulate and report on
financial information about performance, financial position, cash flow of a business. used to
reach decisions about how to manage the business, invest in it, or lend money to it
