D236 PRE ASSESSMENT EXAMPREP 2026
GUARANTEED PASS TESTED QUESTIONS AND
SOLUTIONS
◉ 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
GUARANTEED PASS TESTED QUESTIONS AND
SOLUTIONS
◉ 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
