WGU D774 – PA UPDATED ACTUAL Questions and CORRECT Answers
Which ancient civilization dates to the early Ancient Mesopotamia (c. 3000 BCE) 3 multiple choice options
development of accounting?
Which year is associated with the stock 1929 3 multiple choice options
market crash that had a profound
economic impact?
What was the regulatory outcome of The Sarbanes-Oxley Act was introduced, requiring stricter financial controls and
accounting scandals such as Enron, oversight.
WorldCom, and Tyco? 3 multiple choice options
A business owner is trying to better Financial accounting focuses on external reporting, while managerial accounting
understand their company's financial focuses on internal decision-making.
performance and operations. The owner
recently learned that two types of
accounting—financial accounting and
3 multiple choice options
managerial accounting—serve different
purposes. What is one difference between
them?
Which statement describes the focus of Improving future results based on an analysis of past performance
managerial accounting? 3 multiple choice options
A company is preparing annual financial They include monetary and nonmonetary information. 3 multiple choice options
statements to share with investors. Which
characteristic of financial accounting
reports applies in this situation?
, A publicly traded company is preparing to Securities and Exchange Commission (SEC) 2 multiple choice options
issue stock to its investors. As part of the
process, the company must submit financial
disclosures and filings to the regulatory
agency overseeing securities markets.
Which federal agency is responsible for this
regulation?
Which organization is an independent, Financial Accounting Standards Board (FASB) 2 multiple choice options
nonprofit entity responsible for setting
financial accounting and reporting
standards for public and private sector
businesses in the United States that use
generally accepted accounting principles
(GAAP)?
What is the purpose of the Public Company It oversees the audits of public companies to protect investors. 2 multiple choice options
Accounting Oversight Board (PCAOB)?
A multinational corporation wants to hire Big Four 3 multiple choice options
an audit firm with extensive experience in
financial statement auditing for publicly
traded companies. Which type of firm
would be the most suitable choice?
Which accounting formula does the income Revenues - expenses 3 multiple choice options
statement represent?
The day-to-day operational costs not associated with the direct selling of products
What does a company's operating expense
or services
on the income statement represent?
2 multiple choice options
A business pays rent for its office space, General and administrative expenses 2 multiple choice options
which is reported as an expense on its
income statement.Which category includes
this expense?
Which financial statement reports the profit Income statement 2 multiple choice options
or loss using the accrual basis of
accounting?
How do the income statement categories It categorizes revenue based on operating and non-operating activities.
allow for different income streams when a
company earns money from multiple 2 multiple choice options
sources?
A shopkeeper receives $500 from selling Revenues 2 multiple choice options
products in their store. Where should this
be reported on the income statement?
The investors of Kretsmart are interested in Income statement 2 multiple choice options
whether Kretsmart has been profitable for
the last year. The investors received the
complete financial statements for the
company. Which report should they review
to see if the company was profitable?
Which ancient civilization dates to the early Ancient Mesopotamia (c. 3000 BCE) 3 multiple choice options
development of accounting?
Which year is associated with the stock 1929 3 multiple choice options
market crash that had a profound
economic impact?
What was the regulatory outcome of The Sarbanes-Oxley Act was introduced, requiring stricter financial controls and
accounting scandals such as Enron, oversight.
WorldCom, and Tyco? 3 multiple choice options
A business owner is trying to better Financial accounting focuses on external reporting, while managerial accounting
understand their company's financial focuses on internal decision-making.
performance and operations. The owner
recently learned that two types of
accounting—financial accounting and
3 multiple choice options
managerial accounting—serve different
purposes. What is one difference between
them?
Which statement describes the focus of Improving future results based on an analysis of past performance
managerial accounting? 3 multiple choice options
A company is preparing annual financial They include monetary and nonmonetary information. 3 multiple choice options
statements to share with investors. Which
characteristic of financial accounting
reports applies in this situation?
, A publicly traded company is preparing to Securities and Exchange Commission (SEC) 2 multiple choice options
issue stock to its investors. As part of the
process, the company must submit financial
disclosures and filings to the regulatory
agency overseeing securities markets.
Which federal agency is responsible for this
regulation?
Which organization is an independent, Financial Accounting Standards Board (FASB) 2 multiple choice options
nonprofit entity responsible for setting
financial accounting and reporting
standards for public and private sector
businesses in the United States that use
generally accepted accounting principles
(GAAP)?
What is the purpose of the Public Company It oversees the audits of public companies to protect investors. 2 multiple choice options
Accounting Oversight Board (PCAOB)?
A multinational corporation wants to hire Big Four 3 multiple choice options
an audit firm with extensive experience in
financial statement auditing for publicly
traded companies. Which type of firm
would be the most suitable choice?
Which accounting formula does the income Revenues - expenses 3 multiple choice options
statement represent?
The day-to-day operational costs not associated with the direct selling of products
What does a company's operating expense
or services
on the income statement represent?
2 multiple choice options
A business pays rent for its office space, General and administrative expenses 2 multiple choice options
which is reported as an expense on its
income statement.Which category includes
this expense?
Which financial statement reports the profit Income statement 2 multiple choice options
or loss using the accrual basis of
accounting?
How do the income statement categories It categorizes revenue based on operating and non-operating activities.
allow for different income streams when a
company earns money from multiple 2 multiple choice options
sources?
A shopkeeper receives $500 from selling Revenues 2 multiple choice options
products in their store. Where should this
be reported on the income statement?
The investors of Kretsmart are interested in Income statement 2 multiple choice options
whether Kretsmart has been profitable for
the last year. The investors received the
complete financial statements for the
company. Which report should they review
to see if the company was profitable?
