WGU D103 Questions with verified
solutions already passed
,Unit 2.
1. What entity was established by the federal government to help develop and standardize
financial information presented to stockholders?
a. SEC (Securities and Exchange Commission) b. CAP (Committee on
Accounting Procedure)
c. AICPA (American Institute of Certified Public Accountants) d. FASB (Financial Accounting
Standards Board)
2. What group selects members of the FASB?
a. FASAC (Financial Accounting Standards Advisory Council)
** The FASB relies the FASAC's expertise on major policy and technical issues.
b. AICPA (American Institute of Certified Public Accountants) c. FAF (Financial
Accounting Foundation)
d. SEC (Securities and Exchange Commission)
3. How is the role of the Securities and Exchange Commission (SEC) in the formulation of
accounting standards best described?
a. It allows the FASB to develop all accounting standards by itself.
b. It develops all accounting standards by itself.
c. The SEC vetoes standards proposed by the FASB.
d. The SEC relies on FASB to develop standards but gives advice and recommendations to the
private sector as needed.
4. What is a significant difference between the FASB (Financial Accounting Standards Board) and
its predecessor, the APB?
a. Larger membership b. Increased independence c. centralized representation d. Less
autonomy
** APB members kept their positions in the private sector. FASB members must sever all ties to firms,
companies, or institutions.
5. What organization has been responsible for setting U.S. accounting standards?
a. The Committee on Accounting Procedure b. The U.S. Accounting Standards Board
c. The Accounting Principles Board d. The Financial Accounting Standards Board
6. What is a characteristic of generally accepted accounting principles?
a. They are standards and principles based on federal statutes.
b. They are practices that become accepted for at least a year by all industry members.
, c. Their acceptance requires an affirmative vote of Certified Public Accountants.
d. They are a common set of standards and principles.
1. What is true of generally accepted accounting principles?
a. GAAP is not influenced by pronouncements of the SEC and IRS.
b. GAAP changes over time as the nature of the business environment changes.
c. GAAP changes over time as the nature of the business environment changes.
d. GAAP includes mainly broad practices and procedures and strict guidelines of general application.
2. Which publication is considered a GAAP document?
a. FASB Opinions b. APB Opinions
c. AICPA Research Notifications d. Statements of Financial Accounting Concepts
3. What is part of generally accepted accounting principles?
a. CAP Intepretations b. AICPA Research Analysis c. FASB Opinions d. APB
Opinions
4. Which entity provides most significant current source of generally accepted accounting principles?
a. SEC b. FASB c. APB d. AICPA
1. What is true regarding the FASB Codification?
a. The purpose of the Codification is to create new GAAP.
b. The Codification was created to simplify user access.
c. The goal of the Codification is to minimize the relevant literature about a particular topic to just
a relevant few.
d. The Codification slightly changes the way GAAP is documented, but the update process remains
the same.
2. What does the Financial Accounting Standards Board Accounting Standards Codification do?
a. Eliminates nonessential information and simplifies user access to all authoritative U.S.
generally accepted accounting principles
b. Creates new GAAP, eliminates nonessential information and simplifies user access to some of
the essential authoritative GAAP
c. Restricts user access to portions of the authoritative U.S. generally accepted accounting principles
d. Creates new GAAP
1. What is a characteristic for members of the Financial Accounting Standards Board (FASB)?
solutions already passed
,Unit 2.
1. What entity was established by the federal government to help develop and standardize
financial information presented to stockholders?
a. SEC (Securities and Exchange Commission) b. CAP (Committee on
Accounting Procedure)
c. AICPA (American Institute of Certified Public Accountants) d. FASB (Financial Accounting
Standards Board)
2. What group selects members of the FASB?
a. FASAC (Financial Accounting Standards Advisory Council)
** The FASB relies the FASAC's expertise on major policy and technical issues.
b. AICPA (American Institute of Certified Public Accountants) c. FAF (Financial
Accounting Foundation)
d. SEC (Securities and Exchange Commission)
3. How is the role of the Securities and Exchange Commission (SEC) in the formulation of
accounting standards best described?
a. It allows the FASB to develop all accounting standards by itself.
b. It develops all accounting standards by itself.
c. The SEC vetoes standards proposed by the FASB.
d. The SEC relies on FASB to develop standards but gives advice and recommendations to the
private sector as needed.
4. What is a significant difference between the FASB (Financial Accounting Standards Board) and
its predecessor, the APB?
a. Larger membership b. Increased independence c. centralized representation d. Less
autonomy
** APB members kept their positions in the private sector. FASB members must sever all ties to firms,
companies, or institutions.
5. What organization has been responsible for setting U.S. accounting standards?
a. The Committee on Accounting Procedure b. The U.S. Accounting Standards Board
c. The Accounting Principles Board d. The Financial Accounting Standards Board
6. What is a characteristic of generally accepted accounting principles?
a. They are standards and principles based on federal statutes.
b. They are practices that become accepted for at least a year by all industry members.
, c. Their acceptance requires an affirmative vote of Certified Public Accountants.
d. They are a common set of standards and principles.
1. What is true of generally accepted accounting principles?
a. GAAP is not influenced by pronouncements of the SEC and IRS.
b. GAAP changes over time as the nature of the business environment changes.
c. GAAP changes over time as the nature of the business environment changes.
d. GAAP includes mainly broad practices and procedures and strict guidelines of general application.
2. Which publication is considered a GAAP document?
a. FASB Opinions b. APB Opinions
c. AICPA Research Notifications d. Statements of Financial Accounting Concepts
3. What is part of generally accepted accounting principles?
a. CAP Intepretations b. AICPA Research Analysis c. FASB Opinions d. APB
Opinions
4. Which entity provides most significant current source of generally accepted accounting principles?
a. SEC b. FASB c. APB d. AICPA
1. What is true regarding the FASB Codification?
a. The purpose of the Codification is to create new GAAP.
b. The Codification was created to simplify user access.
c. The goal of the Codification is to minimize the relevant literature about a particular topic to just
a relevant few.
d. The Codification slightly changes the way GAAP is documented, but the update process remains
the same.
2. What does the Financial Accounting Standards Board Accounting Standards Codification do?
a. Eliminates nonessential information and simplifies user access to all authoritative U.S.
generally accepted accounting principles
b. Creates new GAAP, eliminates nonessential information and simplifies user access to some of
the essential authoritative GAAP
c. Restricts user access to portions of the authoritative U.S. generally accepted accounting principles
d. Creates new GAAP
1. What is a characteristic for members of the Financial Accounting Standards Board (FASB)?
