WGU C213 PA AND OA EXAM SCRIPT
VERIFIED QUESTIONS AND SOLUTIONS
COMPLETE REVIEW MATERIAL
●● What is NOT typically true of accounting information?
Answer: The information relates to future time periods.
●● Which is NOT a key component of the definition of accounting?
Answer: Qualitative
●● What is true about the double-entry system of bookkeeping?
Answer: It was developed in the 1300s−1400s in Italy.
●● Businesses use accounting systems to
Answer: Analyze transactions; Handle routine bookkeeping tasks;
Evaluate performance and health of the business.
●● What is not a function of accounting?
Answer: Executing sales transactions for organizations
●● What is NOT one of the three primary financial statements?
Answer: Statement of retained earnings
,●● Generally accepted accounting principles are
Answer: Developed by accounting rule makers
●● The initials GAAP stand for
Answer: Generally Accepted Accounting Principles
●● The current standard-setting board for accounting in the private
sector is the
Answer: Financial Accounting Standards Board (FASB)
●● Which of the following organizations has specific legal authority to
establish accounting standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
●● Which is NOT a service typically provided by large public
accounting firms?
Answer: Making management decisions
●● The organization that develops worldwide accounting standards is
the
Answer: International Accounting Standards Board (IASB)
,●● The initials CPA stand for
Answer: Certified Public Accountant
●● Which of the following financial statements reports a company's
resources, obligations, and owner's equity?
Answer: Balance sheet
●● Which of the following financial statements reports the excess of a
company's revenues over its expenses?
Answer: Income statement
●● Which of the following financial statements reports the amount of
cash collected and paid out by a company?
Answer: Statement of cash flows
●● The emphasis in financial accounting is on which of the following
external user groups?
Answer: Investors and creditors
●● The primary internal group that uses accounting information is
Answer: Management
●● Internal reports are generally used by
, Answer: Management
●● Which of the following is NOT an external user of financial
information?
Answer: Management
●● Which of the following is NOT true of the Financial Accounting
Standards Board (FASB)?
Answer: It is a government agency
●● Generally accepted accounting principles are
Answer: Developed by accounting rule makers
●● The initials GAAP stand for
Answer: Generally Accepted Accounting Principles
●● The current standard-setting board for accounting in the private
sector is the
Answer: Financial Accounting Standards Board (FASB)
●● Which of the following organizations has specific legal authority to
establish accounting standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
VERIFIED QUESTIONS AND SOLUTIONS
COMPLETE REVIEW MATERIAL
●● What is NOT typically true of accounting information?
Answer: The information relates to future time periods.
●● Which is NOT a key component of the definition of accounting?
Answer: Qualitative
●● What is true about the double-entry system of bookkeeping?
Answer: It was developed in the 1300s−1400s in Italy.
●● Businesses use accounting systems to
Answer: Analyze transactions; Handle routine bookkeeping tasks;
Evaluate performance and health of the business.
●● What is not a function of accounting?
Answer: Executing sales transactions for organizations
●● What is NOT one of the three primary financial statements?
Answer: Statement of retained earnings
,●● Generally accepted accounting principles are
Answer: Developed by accounting rule makers
●● The initials GAAP stand for
Answer: Generally Accepted Accounting Principles
●● The current standard-setting board for accounting in the private
sector is the
Answer: Financial Accounting Standards Board (FASB)
●● Which of the following organizations has specific legal authority to
establish accounting standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
●● Which is NOT a service typically provided by large public
accounting firms?
Answer: Making management decisions
●● The organization that develops worldwide accounting standards is
the
Answer: International Accounting Standards Board (IASB)
,●● The initials CPA stand for
Answer: Certified Public Accountant
●● Which of the following financial statements reports a company's
resources, obligations, and owner's equity?
Answer: Balance sheet
●● Which of the following financial statements reports the excess of a
company's revenues over its expenses?
Answer: Income statement
●● Which of the following financial statements reports the amount of
cash collected and paid out by a company?
Answer: Statement of cash flows
●● The emphasis in financial accounting is on which of the following
external user groups?
Answer: Investors and creditors
●● The primary internal group that uses accounting information is
Answer: Management
●● Internal reports are generally used by
, Answer: Management
●● Which of the following is NOT an external user of financial
information?
Answer: Management
●● Which of the following is NOT true of the Financial Accounting
Standards Board (FASB)?
Answer: It is a government agency
●● Generally accepted accounting principles are
Answer: Developed by accounting rule makers
●● The initials GAAP stand for
Answer: Generally Accepted Accounting Principles
●● The current standard-setting board for accounting in the private
sector is the
Answer: Financial Accounting Standards Board (FASB)
●● Which of the following organizations has specific legal authority to
establish accounting standards for publicly held companies?
Answer: Securities and Exchange Commission (SEC)
