WGU D774 EXAM ACTUAL EXAM 2026 | INTRODUCTION
TO BUSINESS ACCOUNTING EXAM | ALL QUESTIONS
AND CORRECT ANSWERS | VERIFIED ANSWERS |
UPDATED VERSION
Which regulation requires the certification and documentation of
internal controls, including an auditor's issuance of an internal report
after evaluating those controls?
- Dodd-Frank Act
- Foreign Corrupt Practices Act
- Federal Trade Commission Act
- Sarbanes-Oxley Act ---------CORRECT ANSWER-----------------Sarbanes-
Oxley Act
Which financial statement represents the formula: revenues -
expenses?
- Income statement
- Statement of owner's equity
- Statement of cash flows
- Balance sheet ---------CORRECT ANSWER-----------------Income
statement
,A company reports advertising, rent on administrative offices, and
payroll expenses for the sales executives in a separate category on the
income statement from production costs.
Which category of expenses should advertising, rent, and payroll
expenses be in on the income statement?
- Operating expenses
- Non-operating expenses
- Cost of goods sold
- Interest expenses ---------CORRECT ANSWER-----------------Operating
expenses
A company donates money to a charity and reports the expense on its
income statement.
Which category includes this type of expense?
- General and administrative expenses
- Cost of goods sold
- Non-operating expenses
- Operating expenses ---------CORRECT ANSWER-----------------Non-
operating expenses
A company reports a net loss despite strong sales growth due to high
operational costs.
,What does this reveal about the limitations of the income statement?
- It does not explain why costs are increasing.
- It automatically indicates poor business performance.
- It excludes revenue growth data.
- It provides only cash flow details. ---------CORRECT ANSWER---------------
--It does not explain why costs are increasing.
A company reports the following items:
Assets: $45,000
Liabilities: $20,000
Revenues: $12,000
Expenses: $5,000
Which amount should be reported as the company's owner's equity
amount on the balance sheet?
- $25,000
- $17,000
- $65,000
- $7,000 ---------CORRECT ANSWER-----------------$25,000 (The owner's
equity is calculated by subtracting total liabilities from total assets.)
A business owns equipment that has a five-year useful life.
, How should this equipment be classified in accounting?
- Short-term asset
- Intangible asset
- Natural resource
- Tangible asset ---------CORRECT ANSWER-----------------Tangible asset
Which statement is true about stockholders and stakeholders?
- All stockholders are stakeholders, but not all stakeholders are
stockholders.
- Stakeholders must own shares in a company to be considered
stakeholders.
- Stockholders and stakeholders are completely unrelated terms.
- All stakeholders are stockholders ---------CORRECT ANSWER---------------
--All stockholders are stakeholders, but not all stakeholders are
stockholders.
Which organization is responsible for creating and issuing the financial
accounting standards that form the foundation of generally accepted
accounting principles (GAAP) in the United States?
- Securities and Exchange Commission (SEC)
- American Institute of Certified Public Accountants (AICPA)
- Internal Revenue Service (IRS)
TO BUSINESS ACCOUNTING EXAM | ALL QUESTIONS
AND CORRECT ANSWERS | VERIFIED ANSWERS |
UPDATED VERSION
Which regulation requires the certification and documentation of
internal controls, including an auditor's issuance of an internal report
after evaluating those controls?
- Dodd-Frank Act
- Foreign Corrupt Practices Act
- Federal Trade Commission Act
- Sarbanes-Oxley Act ---------CORRECT ANSWER-----------------Sarbanes-
Oxley Act
Which financial statement represents the formula: revenues -
expenses?
- Income statement
- Statement of owner's equity
- Statement of cash flows
- Balance sheet ---------CORRECT ANSWER-----------------Income
statement
,A company reports advertising, rent on administrative offices, and
payroll expenses for the sales executives in a separate category on the
income statement from production costs.
Which category of expenses should advertising, rent, and payroll
expenses be in on the income statement?
- Operating expenses
- Non-operating expenses
- Cost of goods sold
- Interest expenses ---------CORRECT ANSWER-----------------Operating
expenses
A company donates money to a charity and reports the expense on its
income statement.
Which category includes this type of expense?
- General and administrative expenses
- Cost of goods sold
- Non-operating expenses
- Operating expenses ---------CORRECT ANSWER-----------------Non-
operating expenses
A company reports a net loss despite strong sales growth due to high
operational costs.
,What does this reveal about the limitations of the income statement?
- It does not explain why costs are increasing.
- It automatically indicates poor business performance.
- It excludes revenue growth data.
- It provides only cash flow details. ---------CORRECT ANSWER---------------
--It does not explain why costs are increasing.
A company reports the following items:
Assets: $45,000
Liabilities: $20,000
Revenues: $12,000
Expenses: $5,000
Which amount should be reported as the company's owner's equity
amount on the balance sheet?
- $25,000
- $17,000
- $65,000
- $7,000 ---------CORRECT ANSWER-----------------$25,000 (The owner's
equity is calculated by subtracting total liabilities from total assets.)
A business owns equipment that has a five-year useful life.
, How should this equipment be classified in accounting?
- Short-term asset
- Intangible asset
- Natural resource
- Tangible asset ---------CORRECT ANSWER-----------------Tangible asset
Which statement is true about stockholders and stakeholders?
- All stockholders are stakeholders, but not all stakeholders are
stockholders.
- Stakeholders must own shares in a company to be considered
stakeholders.
- Stockholders and stakeholders are completely unrelated terms.
- All stakeholders are stockholders ---------CORRECT ANSWER---------------
--All stockholders are stakeholders, but not all stakeholders are
stockholders.
Which organization is responsible for creating and issuing the financial
accounting standards that form the foundation of generally accepted
accounting principles (GAAP) in the United States?
- Securities and Exchange Commission (SEC)
- American Institute of Certified Public Accountants (AICPA)
- Internal Revenue Service (IRS)
