WGU D774 - Section 1 Exam Questions with Correct Answers Latest Update

WGU D774 - Section 1 Exam Questions with Correct Answers Latest Update The Stock Market Crash of 1929 and the resulting Great Depression resulted in the government creating which government organization? - Answers The Securities and Exchange Commission (SEC) Which act of Congress (1) requires corporate executives to implement risk management procedures, (2) requires management to establish and maintain internal controls, and (3) requires both management and external auditors to certify the adequacy of the company's internal controls? - Answers The Sarbanes-Oxley Act of 2002 The father of accounting - Answers Luca Pacioli Major economic event that followed soon after the stock market crash of 1929 - Answers The Great Depression An act that imposed new regulations on both businesses and accounting firms in 2002 - Answers Sarbanes-Oxley An act that was passed in 2008 because of excessive risk taking by banks - Answers Dodd-Frank Nation/empire that used to taxation system 5000 years ago - Answers Egypt Regulatory agency created to restore confidence in the financial markets after the great stock market crash - Answers SEC Country of residence of the monk/mathematician who develop the double entry accounting system - Answers Italy Person who must personally attest to the accuracy in fairness of their company financial statements - Answers CEO Which primary financial statement examines the profitability of the business of a specific time period ? - Answers The income statement Which planning interest statement shows what a company owns (its assets), what else its liabilities), and how much the owners interest in the company are (it's owners equity)? - Answers The balance sheet The statement of cash flows provides what detail about a company? - Answers The statement of cash flows details, accompanies, and flows and outflows of cash from all sources - some from operations and some financing other activities What field of accounting - financial or managerial - is more rule based? - Answers Financial accounting is governed by rules and regulations. Managerial accounting is based on competitive needs, and it's use will vary from company to company. What is a corporation? - Answers Corporation is an organization, that combines resources, skills, capital, labor, and knowledge to provide goods and services to a market and pursuit a profit. It is a legal entity that is separate and distinct from itsowners. What are some of the advantages of a corporation? - Answers -Owners of a corporation generally have limited liability, meaning they cannot be held liable for more than they have invested by buying the company's stock. -Corporations have ease of transferability, meaning shares of ownership can easily be purchased and sold on exchanges such as the NYSE or Nasdaq. -Corporations are separate from their owners and, in almost every way, have the same legal rights as individuals.