WGU D774 Intro to Business Accounting UPDATED ACTUAL Questions and
CORRECT Answers
In which country was the double-entry Italy 3 multiple choice options
accounting system developed in the 15th
century?
Which major economic event followed Great Depression 3 multiple choice options
soon after the Stock Market Crash of 1929?
Which economic event immediately Dot-com bubble 3 multiple choice options
preceded and led to the passage of the
Sarbanes-Oxley Act of 2002?
Why are there no standardized Company managers can generate any information they want to help them make
regulations relating to the production of better decisions, so no outside regulation is needed.
managerial accounting information? 3 multiple choice options
What is a common use of managerial Making better planning, operating, and evaluating decisions inside a company
accounting information? 3 multiple choice options
Which report is one of the three primary Income statement 3 multiple choice options
financial statements?
Who performs external audits of financial Certified Public Accountant (CPA) 3 multiple choice options
statements?
Who selects a corporation’s board of Shareholders of the corporation 3 multiple choice options
directors?
What is an advantage of structuring a Legal existence separated from that of the shareholders 3 multiple choice options
business as a corporation?
What is one of the characteristics of a Ease of transfer of ownership 3 multiple choice options
corporation?
What is contained in Securities and Annual audited financial statements 3 multiple choice options
Exchange Commission Form 10-K?
, Why would a company's employees be To assess the current profitability of the company, its performance, and its liquidity
directly interested in the company's income
3 multiple choice options
statement?
Which information is contained in the The amount by which revenues exceed expenses 3 multiple choice options
reported amount of net income?
Which measurement is highlighted in the Operating income 3 multiple choice options
multi-step format for the income
statement?
Which label refers to the costs of buying Cost of sales 3 multiple choice options
or making the products a company sells?
Which item is listed first on the income Revenues 3 multiple choice options
statement?
Which item is reported in an income Revenues 3 multiple choice options
statement?
In which situation does a company report When products or services are sold 3 multiple choice options
revenue?
Which item should be reported as Amount earned from customers for the sale of goods 3 multiple choice options
revenue in the income statement?
Alliah Company is preparing to do an Revenue and expenses 3 multiple choice options
initial public offering (IPO) of its shares
next year. Alliah knows that investors use
a company’s net income in their valuation
models to determine how much an IPO
company’s shares are worth. Alliah’s
founders are eager for this IPO to do well
so that their many years of work will be
validated in the stock market. Here are
some data from Alliah Company’s
financial statements:Inventory
Accounts Payable
Expenses
Capital Stock (also called Paid-in Capital)
Accounts Receivable
Cash
Retained Earnings
Revenue
Building
Loans Payable
Which items are used to compute Alliah’s
net income?
The financial records for Freedom Rock Sales, salary expense, and income tax expense 3 multiple choice options
Bicycles contain the following accounts.
Salary expense
Cash
Sales
Inventory
Income tax expense
Accounts receivable
Which items should be used to compute
Freedom Rock’s net income?
CORRECT Answers
In which country was the double-entry Italy 3 multiple choice options
accounting system developed in the 15th
century?
Which major economic event followed Great Depression 3 multiple choice options
soon after the Stock Market Crash of 1929?
Which economic event immediately Dot-com bubble 3 multiple choice options
preceded and led to the passage of the
Sarbanes-Oxley Act of 2002?
Why are there no standardized Company managers can generate any information they want to help them make
regulations relating to the production of better decisions, so no outside regulation is needed.
managerial accounting information? 3 multiple choice options
What is a common use of managerial Making better planning, operating, and evaluating decisions inside a company
accounting information? 3 multiple choice options
Which report is one of the three primary Income statement 3 multiple choice options
financial statements?
Who performs external audits of financial Certified Public Accountant (CPA) 3 multiple choice options
statements?
Who selects a corporation’s board of Shareholders of the corporation 3 multiple choice options
directors?
What is an advantage of structuring a Legal existence separated from that of the shareholders 3 multiple choice options
business as a corporation?
What is one of the characteristics of a Ease of transfer of ownership 3 multiple choice options
corporation?
What is contained in Securities and Annual audited financial statements 3 multiple choice options
Exchange Commission Form 10-K?
, Why would a company's employees be To assess the current profitability of the company, its performance, and its liquidity
directly interested in the company's income
3 multiple choice options
statement?
Which information is contained in the The amount by which revenues exceed expenses 3 multiple choice options
reported amount of net income?
Which measurement is highlighted in the Operating income 3 multiple choice options
multi-step format for the income
statement?
Which label refers to the costs of buying Cost of sales 3 multiple choice options
or making the products a company sells?
Which item is listed first on the income Revenues 3 multiple choice options
statement?
Which item is reported in an income Revenues 3 multiple choice options
statement?
In which situation does a company report When products or services are sold 3 multiple choice options
revenue?
Which item should be reported as Amount earned from customers for the sale of goods 3 multiple choice options
revenue in the income statement?
Alliah Company is preparing to do an Revenue and expenses 3 multiple choice options
initial public offering (IPO) of its shares
next year. Alliah knows that investors use
a company’s net income in their valuation
models to determine how much an IPO
company’s shares are worth. Alliah’s
founders are eager for this IPO to do well
so that their many years of work will be
validated in the stock market. Here are
some data from Alliah Company’s
financial statements:Inventory
Accounts Payable
Expenses
Capital Stock (also called Paid-in Capital)
Accounts Receivable
Cash
Retained Earnings
Revenue
Building
Loans Payable
Which items are used to compute Alliah’s
net income?
The financial records for Freedom Rock Sales, salary expense, and income tax expense 3 multiple choice options
Bicycles contain the following accounts.
Salary expense
Cash
Sales
Inventory
Income tax expense
Accounts receivable
Which items should be used to compute
Freedom Rock’s net income?
