WGU D774 Intro to Business Accounting Exam 70
Questions with Verified Answers
Italy - CORRECT ANSWER In which country was the double-entry accounting
system developed in the 15th century?
Great Depression - CORRECT ANSWER Which major economic event followed
soon after the Stock Market Crash of 1929?
Dot-com bubble - CORRECT ANSWER Which economic event immediately
preceded and led to the passage of the Sarbanes-Oxley Act of 2002?
Company managers can generate any information they want to help them make
better decisions, so no outside regulation is needed. - CORRECT ANSWER Why are
there no standardized regulations relating to the production of managerial
accounting information?
Making better planning, operating, and evaluating decisions inside a company -
CORRECT ANSWER What is a common use of managerial accounting information?
Income statement - CORRECT ANSWER Which report is one of the three primary
financial statements?
Certified Public Accountant (CPA) - CORRECT ANSWER Who performs external
audits of financial statements?
, Shareholders of the corporation - CORRECT ANSWER Who selects a corporation's
board of directors?
Legal existence separated from that of the shareholders - CORRECT ANSWER What
is an advantage of structuring a business as a corporation?
Ease of transfer of ownership - CORRECT ANSWER What is one of the
characteristics of a corporation?
Annual audited financial statements - CORRECT ANSWER What is contained in
Securities and Exchange Commission Form 10-K?
To assess the current profitability of the company, its performance, and its
liquidity - CORRECT ANSWER Why would a company's employees be directly
interested in the company's income statement?
The amount by which revenues exceed expenses - CORRECT ANSWER Which
information is contained in the reported amount of net income?
Operating income - CORRECT ANSWER Which measurement is highlighted in the
multi-step format for the income statement?
Cost of sales - CORRECT ANSWER Which label refers to the costs of buying or
making the products a company sells?
Revenues - CORRECT ANSWER Which item is listed first on the income statement?
Questions with Verified Answers
Italy - CORRECT ANSWER In which country was the double-entry accounting
system developed in the 15th century?
Great Depression - CORRECT ANSWER Which major economic event followed
soon after the Stock Market Crash of 1929?
Dot-com bubble - CORRECT ANSWER Which economic event immediately
preceded and led to the passage of the Sarbanes-Oxley Act of 2002?
Company managers can generate any information they want to help them make
better decisions, so no outside regulation is needed. - CORRECT ANSWER Why are
there no standardized regulations relating to the production of managerial
accounting information?
Making better planning, operating, and evaluating decisions inside a company -
CORRECT ANSWER What is a common use of managerial accounting information?
Income statement - CORRECT ANSWER Which report is one of the three primary
financial statements?
Certified Public Accountant (CPA) - CORRECT ANSWER Who performs external
audits of financial statements?
, Shareholders of the corporation - CORRECT ANSWER Who selects a corporation's
board of directors?
Legal existence separated from that of the shareholders - CORRECT ANSWER What
is an advantage of structuring a business as a corporation?
Ease of transfer of ownership - CORRECT ANSWER What is one of the
characteristics of a corporation?
Annual audited financial statements - CORRECT ANSWER What is contained in
Securities and Exchange Commission Form 10-K?
To assess the current profitability of the company, its performance, and its
liquidity - CORRECT ANSWER Why would a company's employees be directly
interested in the company's income statement?
The amount by which revenues exceed expenses - CORRECT ANSWER Which
information is contained in the reported amount of net income?
Operating income - CORRECT ANSWER Which measurement is highlighted in the
multi-step format for the income statement?
Cost of sales - CORRECT ANSWER Which label refers to the costs of buying or
making the products a company sells?
Revenues - CORRECT ANSWER Which item is listed first on the income statement?
