WGU D774 Intro to Business Accounting Exam
Questions With Correct Answers
In |which |country |was |the |double-entry |accounting |system |developed |in |the |15th |century?
Italy
3 |multiple |choice |options
Which |major |economic |event |followed |soon |after |the |Stock |Market |Crash |of |1929?
Great |Depression
3 |multiple |choice |options
Which |economic |event |immediately |preceded |and |led |to |the |passage |of |the |Sarbanes-Oxley |
Act |of |2002?
Dot-com |bubble
3 |multiple |choice |options
Why |are |there |no |standardized |regulations |relating |to |the |production |of |managerial |
accounting |information?
Company |managers |can |generate |any |information |they |want |to |help |them |make |better |
decisions, |so |no |outside |regulation |is |needed.
3 |multiple |choice |options
What |is |a |common |use |of |managerial |accounting |information?
Making |better |planning, |operating, |and |evaluating |decisions |inside |a |company
3 |multiple |choice |options
Which |report |is |one |of |the |three |primary |financial |statements?
Income |statement
3 |multiple |choice |options
Who |performs |external |audits |of |financial |statements?
Certified |Public |Accountant |(CPA)
3 |multiple |choice |options
, Who |selects |a |corporation’s |board |of |directors?
Shareholders |of |the |corporation
3 |multiple |choice |options
What |is |an |advantage |of |structuring |a |business |as |a |corporation?
Legal |existence |separated |from |that |of |the |shareholders
3 |multiple |choice |options
What |is |one |of |the |characteristics |of |a |corporation?
Ease |of |transfer |of |ownership
3 |multiple |choice |options
What |is |contained |in |Securities |and |Exchange |Commission |Form |10-K?
Annual |audited |financial |statements
3 |multiple |choice |options
Why |would |a |company's |employees |be |directly |interested |in |the |company's |income |
statement?
To |assess |the |current |profitability |of |the |company, |its |performance, |and |its |liquidity
3 |multiple |choice |options
Which |information |is |contained |in |the |reported |amount |of |net |income?
The |amount |by |which |revenues |exceed |expenses
3 |multiple |choice |options
Which |measurement |is |highlighted |in |the |multi-step |format |for |the |income |statement?
Operating |income
3 |multiple |choice |options
Which |label |refers |to |the |costs |of |buying |or |making |the |products |a |company |sells?
Cost |of |sales
3 |multiple |choice |options
Which |item |is |listed |first |on |the |income |statement?
Questions With Correct Answers
In |which |country |was |the |double-entry |accounting |system |developed |in |the |15th |century?
Italy
3 |multiple |choice |options
Which |major |economic |event |followed |soon |after |the |Stock |Market |Crash |of |1929?
Great |Depression
3 |multiple |choice |options
Which |economic |event |immediately |preceded |and |led |to |the |passage |of |the |Sarbanes-Oxley |
Act |of |2002?
Dot-com |bubble
3 |multiple |choice |options
Why |are |there |no |standardized |regulations |relating |to |the |production |of |managerial |
accounting |information?
Company |managers |can |generate |any |information |they |want |to |help |them |make |better |
decisions, |so |no |outside |regulation |is |needed.
3 |multiple |choice |options
What |is |a |common |use |of |managerial |accounting |information?
Making |better |planning, |operating, |and |evaluating |decisions |inside |a |company
3 |multiple |choice |options
Which |report |is |one |of |the |three |primary |financial |statements?
Income |statement
3 |multiple |choice |options
Who |performs |external |audits |of |financial |statements?
Certified |Public |Accountant |(CPA)
3 |multiple |choice |options
, Who |selects |a |corporation’s |board |of |directors?
Shareholders |of |the |corporation
3 |multiple |choice |options
What |is |an |advantage |of |structuring |a |business |as |a |corporation?
Legal |existence |separated |from |that |of |the |shareholders
3 |multiple |choice |options
What |is |one |of |the |characteristics |of |a |corporation?
Ease |of |transfer |of |ownership
3 |multiple |choice |options
What |is |contained |in |Securities |and |Exchange |Commission |Form |10-K?
Annual |audited |financial |statements
3 |multiple |choice |options
Why |would |a |company's |employees |be |directly |interested |in |the |company's |income |
statement?
To |assess |the |current |profitability |of |the |company, |its |performance, |and |its |liquidity
3 |multiple |choice |options
Which |information |is |contained |in |the |reported |amount |of |net |income?
The |amount |by |which |revenues |exceed |expenses
3 |multiple |choice |options
Which |measurement |is |highlighted |in |the |multi-step |format |for |the |income |statement?
Operating |income
3 |multiple |choice |options
Which |label |refers |to |the |costs |of |buying |or |making |the |products |a |company |sells?
Cost |of |sales
3 |multiple |choice |options
Which |item |is |listed |first |on |the |income |statement?
