WGU D774 - INTRODUCTION TO BUSINESS ACCOUNTING - ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS (100% CORRECT | GRADED A+ | NEW UPDATE | GUARANTEED PASS | WGU

WGU D774 - INTRODUCTION TO BUSINESS ACCOUNTING - ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS (100% CORRECT | GRADED A+ | NEW UPDATE | GUARANTEED PASS | WGU Which balance is required to prepare the balance sheet from an organization's statement of owners' equity? - Correct Answer Ending owners' equity balance Why was the Securities Act of 1933 passed? - Correct Answer To ensure that investors have financial and other critical information about securities (stocks and bonds) that are being issued to the public for the first time. How does the change in the cash balance for the year impact the computation of the ending retained earnings balance? - Correct Answer It is ignored. Ability to raise large sums of money for investments - Correct Answer What is considered the greatest advantage of corporations? Page 2 of 27 What has been a key development in accounting over the last 500 years? - Correct Answer Using accounting data to evaluate business performance and health The Securities and Exchange Commission (SEC) - Correct Answer The Stock Market Crash of 1929 and the resulting Great Depression resulted in the government creating which government organization? What is required for registration statements filed with the SEC? - Correct Answer They must be audited by independent accountants What did the Securities Act of 1933 require? - Correct Answer It requires companies to disclose information such as their assets, their financial health, and who their board members and senior executives are What was one of the main intentions of the Dodd-Frank Act? - Correct Answer To curb extremely risky financial industry activities in the United States What does the Sarbanes-Oxley Act of 2002 require corporate executives to implement? - Correct Answer Risk management procedures Page 3 of 27 Which corporations is considered of having indefinite life? - Correct Answer The history of the Kikkoman Corporation When the terms are correctly used, what is the difference between revenue and income? - Correct Answer Income is a net concept whereas revenue is a gross concept. Income statement - Correct Answer Which primary financial statement provides a detailed report explaining one component in the year-to-year change in the retained earnings balance? What does controlling involve? - Correct Answer Tracking actual performance and comparing it against budgets What is a common-size income statement? - Correct Answer A statement with percentages of revenue Which question about strategy must be answered when using zerobased budgeting? - Correct Answer Have there been any significant strategy changes that should cause a reallocation of budgeted funds? Page 4 of 27 What are the consequences for a CFO or CEO who knowingly certifies fraudulent financial statements under the SarbanesOxley Act? - Correct Answer A fine of $5 million and up to 20 years in prison What 3 major reports were required by the 1934 Act? - Correct Answer Form 10-K (the annual report), Form 10-Q (the quarterly report), and Form 8-K (the report companies must file to announce major events that shareholders would want to know about). What are generally accepted accounting principles (GAAP)? - Correct Answer Authoritative guidelines that define accounting practice in the United States The Securities Act of 1934 required companies to? - Correct Answer The 1934 Act requires companies to regularly disclose information that investors need to make informed investment decisions. Retained Earnings - Correct Answer balance sheet account is directly impacted by net income Form 10-K? - Correct Answer The annual, audited financial report that all public companies are required to file Page 5 of 27 Public Company Accounting Oversight Board (PCAOB) - Correct Answer A private-sector, nonprofit organization created by Congress in 2002 What is the final step in the sequence of the flow of costs through a manufacturing operation? - Correct Answer Sell goods and transfer cost to cost of goods sold What is the purpose of operational budgeting? - Correct Answer To establish and communicate daily, weekly, and monthly goals What is the purpose of the PCAOB? - Correct Answer To protect the interests of investors by overseeing accounting professionals who provide independent audit reports