WGU D775 Objective Assessment Exams Set
Questions with Verified Answers
1. Which ancient civilization dates to the early development of accounting?: An-
cient Mesopotamia (c. 3000 BCE)
2. Which year is associated with the stocḳ marḳet crash that had a profound
economic impact?: 1929
3. What was the regulatory outcome of accounting scandals such as Enron,
WorldCom, and Tyco?: The Sarbanes-Oxley Act was introduced, requiring stricter financial controls and
oversight.
4. A business owner is trying to better understand their company's financial
performance and operations. The owner recently learned that two types of
accounting—financial accounting and managerial accounting—serve different
purposes. What is one difference between them?: Financial accounting focuses on external
reporting, while managerial accounting focuses on internal decision-maḳing.
5. Which statement describes the focus of managerial accounting?: Improving future
results based on an analysis of past performance
6. A company is preparing annual financial statements to share with investors.
Which characteristic of financial accounting reports applies in this situation?: -
They include monetary and nonmonetary information.
7. A publicly traded company is preparing to issue stocḳ to its investors. As part
of the process, the company must submit financial disclosures and filings to
the regulatory agency overseeing securities marḳets. Which federal agency is
, responsible for this regulation?: Securities and Exchange Commission (SEC)
8. Which organization is an independent, nonprofit entity responsible for set-
ting financial accounting and reporting standards for public and private sector
businesses in the United States that use generally accepted accounting princi-
ples (GAAP)?: Financial Accounting Standards Board (FASB)
9. What is the purpose of the Public Company Accounting Oversight Board
(PCAOB)?: It oversees the audits of public companies to protect investors.
10. A multinational corporation wants to hire an audit firm with extensive ex-
perience in financial statement auditing for publicly traded companies. Which
type of firm would be the most suitable choice?: Big Four
11. Which accounting formula does the income statement represent?: Revenues -
expenses
Questions with Verified Answers
1. Which ancient civilization dates to the early development of accounting?: An-
cient Mesopotamia (c. 3000 BCE)
2. Which year is associated with the stocḳ marḳet crash that had a profound
economic impact?: 1929
3. What was the regulatory outcome of accounting scandals such as Enron,
WorldCom, and Tyco?: The Sarbanes-Oxley Act was introduced, requiring stricter financial controls and
oversight.
4. A business owner is trying to better understand their company's financial
performance and operations. The owner recently learned that two types of
accounting—financial accounting and managerial accounting—serve different
purposes. What is one difference between them?: Financial accounting focuses on external
reporting, while managerial accounting focuses on internal decision-maḳing.
5. Which statement describes the focus of managerial accounting?: Improving future
results based on an analysis of past performance
6. A company is preparing annual financial statements to share with investors.
Which characteristic of financial accounting reports applies in this situation?: -
They include monetary and nonmonetary information.
7. A publicly traded company is preparing to issue stocḳ to its investors. As part
of the process, the company must submit financial disclosures and filings to
the regulatory agency overseeing securities marḳets. Which federal agency is
, responsible for this regulation?: Securities and Exchange Commission (SEC)
8. Which organization is an independent, nonprofit entity responsible for set-
ting financial accounting and reporting standards for public and private sector
businesses in the United States that use generally accepted accounting princi-
ples (GAAP)?: Financial Accounting Standards Board (FASB)
9. What is the purpose of the Public Company Accounting Oversight Board
(PCAOB)?: It oversees the audits of public companies to protect investors.
10. A multinational corporation wants to hire an audit firm with extensive ex-
perience in financial statement auditing for publicly traded companies. Which
type of firm would be the most suitable choice?: Big Four
11. Which accounting formula does the income statement represent?: Revenues -
expenses
