WGU D774 - Section 1 Exam Questions With Correct Answers

WGU D774 - Section 1 Exam Questions With
Correct Answers

What |is |the |primary |purpose |of |accounting? |- |CORRECT |ANSWER✔✔-To |provide |financial |
information |useful |in |decision-making.



Who |are |the |internal |users |of |accounting |information? |- |CORRECT |ANSWER✔✔-Managers, |
executives, |supervisors, |and |employees.



Who |are |the |external |users |of |accounting |information? |- |CORRECT |ANSWER✔✔-Investors, |
creditors, |government |agencies, |suppliers, |and |customers.



What |is |the |accounting |equation? |- |CORRECT |ANSWER✔✔-Assets |= |Liabilities |+ |Owner's |
Equity



What |type |of |business |is |owned |by |one |person |and |offers |no |liability |protection? |- |CORRECT |
ANSWER✔✔-Sole |proprietorship.



What |is |the |key |characteristic |of |a |corporation? |- |CORRECT |ANSWER✔✔-It |is |a |separate |legal |
entity |with |limited |liability |for |its |owners.



What |are |the |four |main |financial |statements? |- |CORRECT |ANSWER✔✔-Income |Statement, |
Statement |of |Retained |Earnings, |Balance |Sheet, |Statement |of |Cash |Flows.



Which |financial |statement |shows |revenues |and |expenses? |- |CORRECT |ANSWER✔✔-Income |
Statement.