WGU D774 OBJECTIVE ASSESSEMENT FINAL VERSION
2 /WGU D774 INTRODUCTION TO BUSINESS OA EXAM
Exam
Historical period of increased accounting importance - ANSWER-The Industrial Revolution
Effect of Sarbanes-Oxley Act of 2002 - ANSWER-It increased corporate responsibility.
Using corporate credit card for personal expenses - ANSWER-Fraud
Purpose of financial accounting - ANSWER-Provides historical financial data in standardized reports
for external stakeholders
Feature of managerial accounting reports - ANSWER-Tailored to meet internal decision-makers' needs
Statement describing managerial accounting reports - ANSWER-Prepared for internal decision-making
needs of management
SEC role in accounting standards - ANSWER-Enforces financial reporting rules established by the
FASB
Certification to offer auditing/tax services - ANSWER-CPA
Auditor buying stock in a company they audit - ANSWER-Violates independence and objectivity
Who oversees and maintains internal controls - ANSWER-Management
Manufacturing expense category on income statement - ANSWER-Cost of goods sold
Interpretation of net income - ANSWER-Revenues are greater than expenses
Limitation of accrual accounting - ANSWER-May not reflect actual cash flow
Effect of favorable volume variance - ANSWER-Increases revenue and cost of goods sold
Category for wages of store employees - ANSWER-Cost of goods sold
Which statement tracks actual cash movement - ANSWER-Statement of cash flows
How to report flea market finds on balance sheet - ANSWER-Assets
Trend shown by comparative income statements - ANSWER-Changes in profitability over time
1
2 /WGU D774 INTRODUCTION TO BUSINESS OA EXAM
Exam
Historical period of increased accounting importance - ANSWER-The Industrial Revolution
Effect of Sarbanes-Oxley Act of 2002 - ANSWER-It increased corporate responsibility.
Using corporate credit card for personal expenses - ANSWER-Fraud
Purpose of financial accounting - ANSWER-Provides historical financial data in standardized reports
for external stakeholders
Feature of managerial accounting reports - ANSWER-Tailored to meet internal decision-makers' needs
Statement describing managerial accounting reports - ANSWER-Prepared for internal decision-making
needs of management
SEC role in accounting standards - ANSWER-Enforces financial reporting rules established by the
FASB
Certification to offer auditing/tax services - ANSWER-CPA
Auditor buying stock in a company they audit - ANSWER-Violates independence and objectivity
Who oversees and maintains internal controls - ANSWER-Management
Manufacturing expense category on income statement - ANSWER-Cost of goods sold
Interpretation of net income - ANSWER-Revenues are greater than expenses
Limitation of accrual accounting - ANSWER-May not reflect actual cash flow
Effect of favorable volume variance - ANSWER-Increases revenue and cost of goods sold
Category for wages of store employees - ANSWER-Cost of goods sold
Which statement tracks actual cash movement - ANSWER-Statement of cash flows
How to report flea market finds on balance sheet - ANSWER-Assets
Trend shown by comparative income statements - ANSWER-Changes in profitability over time
1
