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WGU D196 OBJECTIVE ASSESSMENT FINAL EXAM VERSION 2 LATEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+|
||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
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
Financial reports are used by individuals and organizations
that have an economic interest in the business. They provide
information about the financial performance of a company.
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
This is the role of the SEC, a federal government agency.
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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
The AICPA can enforce professional sanctions by taking
away the CPA designation from an accountant who has acted
unethically.
What is the correct summary sequence in the accounting cycle? -
ANSWER-Analyze, Record, Summarize, Prepare
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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
Important purposes of business documents are to confirm
that a transaction has occurred, to establish the amounts to
be recorded, and to facilitate the analysis of business events.
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
, 4|Page
that provides an efficient way to categorize similar types of
transactions
An account is a specific accounting record that provides an
efficient way to categorize similar transactions. You can think
of an individual account as a summary of every transaction
affecting a certain item, such as cash. Examples of asset
accounts are cash, inventory, and equipment. Liability
accounts include accounts payable and notes payable.
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
The sale of a product is an external transaction and is recorded
on a company's books.
WGU D196 OBJECTIVE ASSESSMENT FINAL EXAM VERSION 2 LATEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+|
||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
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
Financial reports are used by individuals and organizations
that have an economic interest in the business. They provide
information about the financial performance of a company.
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
This is the role of the SEC, a federal government agency.
,2|Page
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
The AICPA can enforce professional sanctions by taking
away the CPA designation from an accountant who has acted
unethically.
What is the correct summary sequence in the accounting cycle? -
ANSWER-Analyze, Record, Summarize, Prepare
,3|Page
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
Important purposes of business documents are to confirm
that a transaction has occurred, to establish the amounts to
be recorded, and to facilitate the analysis of business events.
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
, 4|Page
that provides an efficient way to categorize similar types of
transactions
An account is a specific accounting record that provides an
efficient way to categorize similar transactions. You can think
of an individual account as a summary of every transaction
affecting a certain item, such as cash. Examples of asset
accounts are cash, inventory, and equipment. Liability
accounts include accounts payable and notes payable.
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
The sale of a product is an external transaction and is recorded
on a company's books.
