WGU D774 INTRO TO BUSINESS
ACCOUNTING EXAM PREP TEST BANK
VERIFIED QUESTIONS AND CORRECT
ANSWERS
●● Financial Accounting Standards Board (FASB)
Answer: Which organization is an independent, nonprofit entity
responsible for setting financial accounting and reporting standards for
public and private sector businesses in the United States that use
generally accepted accounting principles (GAAP)?
●● It oversees the audits of public companies to protect investors.
Answer: What is the purpose of the Public Company Accounting
Oversight Board (PCAOB)?
●● Big Four
Answer: A multinational corporation wants to hire an audit firm with
extensive experience in financial statement auditing for publicly traded
companies. Which type of firm would be the most suitable choice?
●● Ancient Mesopotamia (c. 3000 BCE)
Answer: Which ancient civilization dates to the early development of
accounting?
, ●● 1929
Answer: Which year is associated with the stock market crash that had a
profound economic impact?
●● The Sarbanes-Oxley Act was introduced, requiring stricter financial
controls and oversight.
Answer: What was the regulatory outcome of accounting scandals such
as Enron, WorldCom, and Tyco?
●● Financial accounting focuses on external reporting, while managerial
accounting focuses on internal decision-making.
Answer: A business owner is trying to better understand their company's
financial performance and operations. The owner recently learned that
two types of accounting—financial accounting and managerial
accounting—serve different purposes. What is one difference between
them?
●● Improving future results based on an analysis of past performance
Answer: Which statement describes the focus of managerial accounting?
●● They include monetary and nonmonetary information.
Answer: A company is preparing annual financial statements to share
with investors. Which characteristic of financial accounting reports
applies in this situation?
ACCOUNTING EXAM PREP TEST BANK
VERIFIED QUESTIONS AND CORRECT
ANSWERS
●● Financial Accounting Standards Board (FASB)
Answer: Which organization is an independent, nonprofit entity
responsible for setting financial accounting and reporting standards for
public and private sector businesses in the United States that use
generally accepted accounting principles (GAAP)?
●● It oversees the audits of public companies to protect investors.
Answer: What is the purpose of the Public Company Accounting
Oversight Board (PCAOB)?
●● Big Four
Answer: A multinational corporation wants to hire an audit firm with
extensive experience in financial statement auditing for publicly traded
companies. Which type of firm would be the most suitable choice?
●● Ancient Mesopotamia (c. 3000 BCE)
Answer: Which ancient civilization dates to the early development of
accounting?
, ●● 1929
Answer: Which year is associated with the stock market crash that had a
profound economic impact?
●● The Sarbanes-Oxley Act was introduced, requiring stricter financial
controls and oversight.
Answer: What was the regulatory outcome of accounting scandals such
as Enron, WorldCom, and Tyco?
●● Financial accounting focuses on external reporting, while managerial
accounting focuses on internal decision-making.
Answer: A business owner is trying to better understand their company's
financial performance and operations. The owner recently learned that
two types of accounting—financial accounting and managerial
accounting—serve different purposes. What is one difference between
them?
●● Improving future results based on an analysis of past performance
Answer: Which statement describes the focus of managerial accounting?
●● They include monetary and nonmonetary information.
Answer: A company is preparing annual financial statements to share
with investors. Which characteristic of financial accounting reports
applies in this situation?
