WGU D774 – PA EXAM QUESTIONS AND ANSWERS
1. Which ancient civilization dates to the early development of
accounting?: An-cient Mesopotamia (c. 3000 BCE)
2. Which year is associated with the stock market crash that had
a profound economic impact?: 1929
3. What was the regulatory outcome of accounting scandals such
as Enron, WorldCom, and Tyco?: The Sarbanes-Oxley Act was introduced,
requiring stricter financial controls and oversight.
4. 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 differ-ent purposes. What is one
difference between them?: Financial accounting focuses on external
reporting, while managerial accounting focuses on internal decision-making.
5. Which statement describes the focus of managerial accounting?:
Improving future results based on an analysis of past performance
6. A company is preparing annual financial statements to share
with investors. Which characteristic of financial accounting
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, reports applies in this situation?-
: They include monetary and nonmonetary information.
7. A publicly traded company is preparing to issue stock to its
investors. As part of the process, the company must submit
financial disclosures and filings to the regulatory agency
overseeing securities markets. Which federal agency is responsible
for this regulation?: Securities and Exchange Commission (SEC)
8. 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)?:
Financial Accounting Standards Board (FASB)
9. What is the purpose of the Public Company Accounting
Oversight Board (PCAOB)?: It oversees the audits of public companies to
protect investors.
10. 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?: Big Four
11. Which accounting formula does the income statement represent?:
Revenues - expenses
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1. Which ancient civilization dates to the early development of
accounting?: An-cient Mesopotamia (c. 3000 BCE)
2. Which year is associated with the stock market crash that had
a profound economic impact?: 1929
3. What was the regulatory outcome of accounting scandals such
as Enron, WorldCom, and Tyco?: The Sarbanes-Oxley Act was introduced,
requiring stricter financial controls and oversight.
4. 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 differ-ent purposes. What is one
difference between them?: Financial accounting focuses on external
reporting, while managerial accounting focuses on internal decision-making.
5. Which statement describes the focus of managerial accounting?:
Improving future results based on an analysis of past performance
6. A company is preparing annual financial statements to share
with investors. Which characteristic of financial accounting
1/
13
, reports applies in this situation?-
: They include monetary and nonmonetary information.
7. A publicly traded company is preparing to issue stock to its
investors. As part of the process, the company must submit
financial disclosures and filings to the regulatory agency
overseeing securities markets. Which federal agency is responsible
for this regulation?: Securities and Exchange Commission (SEC)
8. 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)?:
Financial Accounting Standards Board (FASB)
9. What is the purpose of the Public Company Accounting
Oversight Board (PCAOB)?: It oversees the audits of public companies to
protect investors.
10. 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?: Big Four
11. Which accounting formula does the income statement represent?:
Revenues - expenses
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13
