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WGU D196 OBJECTIVE ASSESSMENT FINAL EXAM VERSION 1
NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
What group of people make up the FASB?
a. Senior SEC staff members
b. People from a variety of business-related backgrounds
c. Financial accounting specialists appointed by the U.S.
Congress
d. Senior IRS staff members - ANSWER-b. People from a variety
of business-related backgrounds
What is the role of the GASB in setting accounting standards?
a. The GASB establishes accounting and financial reporting
standards together with the IASB.
b. The GASB is a private-sector organization that establishes
accounting and financial reporting standards for U.S. state and
local governments.
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c. The GASB establishes accounting and reporting standards
together with the SEC.
d. The GASB establishes accounting and reporting standards
together with the IRS. - ANSWER-b. The GASB is a private-sector
organization that establishes accounting and financial reporting
standards for U.S. state and local governments.
What is the role of ethics in Accounting? - ANSWER-Ethics
require accounting professionals to comply with the laws and
regulations that govern their jurisdictions and their bodies of work.
In what way do accountants have an economic incentive to
conduct themselves ethically?
a. It is not possible for an unethical accountant to become a
certified public accountant.
b. Most computerized accounting systems recognize unethical
accounting procedures.
c. The value of the information produced by accountants is related
to the confidence that users have in the reliability of that
information.
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d. It is not possible for an unethical accountant to rise to a top
management position in a company. - ANSWER-c. The value of
the information produced by accountants is related to the
confidence that users have in the reliability of that information.
How is it possible for an accountant to intentionally deceive
financial statement users and yet still technically be in compliance
with generally accepted accounting principles (GAAP)?
a. There is conflict between FASB rules and SEC rules.
b. The mismatch between the timing of the filing of tax returns and
the deadlines for the completion of the financial statements leaves
room for dishonesty.
c. An accountant can use a computerized accounting system to
cover up deceptive practices.
d. There is flexibility inherent in the assumptions underlying the
preparation of financial statements. - ANSWER-d. There is
flexibility inherent in the assumptions underlying the preparation
of financial statements.
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Your boss approaches you with a concerning letter from the IRS
and asks you to explain the role of the IRS in regulating
accounting standards. Based on the role of the IRS, what could
be the problem detailed in the letter?
A. company has not complied with certification requirements for
its accounting department
B. the company has not filed its taxes in accordance with the law
C. the companys accounting practices are not up to international
standards.
D. the companys accounting practices are not up to state financial
accounting standards - ANSWER-B. the company has not filed its
taxes in accordance with the law
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?
WGU D196 OBJECTIVE ASSESSMENT FINAL EXAM VERSION 1
NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
What group of people make up the FASB?
a. Senior SEC staff members
b. People from a variety of business-related backgrounds
c. Financial accounting specialists appointed by the U.S.
Congress
d. Senior IRS staff members - ANSWER-b. People from a variety
of business-related backgrounds
What is the role of the GASB in setting accounting standards?
a. The GASB establishes accounting and financial reporting
standards together with the IASB.
b. The GASB is a private-sector organization that establishes
accounting and financial reporting standards for U.S. state and
local governments.
,2|Page
c. The GASB establishes accounting and reporting standards
together with the SEC.
d. The GASB establishes accounting and reporting standards
together with the IRS. - ANSWER-b. The GASB is a private-sector
organization that establishes accounting and financial reporting
standards for U.S. state and local governments.
What is the role of ethics in Accounting? - ANSWER-Ethics
require accounting professionals to comply with the laws and
regulations that govern their jurisdictions and their bodies of work.
In what way do accountants have an economic incentive to
conduct themselves ethically?
a. It is not possible for an unethical accountant to become a
certified public accountant.
b. Most computerized accounting systems recognize unethical
accounting procedures.
c. The value of the information produced by accountants is related
to the confidence that users have in the reliability of that
information.
,3|Page
d. It is not possible for an unethical accountant to rise to a top
management position in a company. - ANSWER-c. The value of
the information produced by accountants is related to the
confidence that users have in the reliability of that information.
How is it possible for an accountant to intentionally deceive
financial statement users and yet still technically be in compliance
with generally accepted accounting principles (GAAP)?
a. There is conflict between FASB rules and SEC rules.
b. The mismatch between the timing of the filing of tax returns and
the deadlines for the completion of the financial statements leaves
room for dishonesty.
c. An accountant can use a computerized accounting system to
cover up deceptive practices.
d. There is flexibility inherent in the assumptions underlying the
preparation of financial statements. - ANSWER-d. There is
flexibility inherent in the assumptions underlying the preparation
of financial statements.
, 4|Page
Your boss approaches you with a concerning letter from the IRS
and asks you to explain the role of the IRS in regulating
accounting standards. Based on the role of the IRS, what could
be the problem detailed in the letter?
A. company has not complied with certification requirements for
its accounting department
B. the company has not filed its taxes in accordance with the law
C. the companys accounting practices are not up to international
standards.
D. the companys accounting practices are not up to state financial
accounting standards - ANSWER-B. the company has not filed its
taxes in accordance with the law
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?
