WGU D774 INTRO TO BUSINESS ACCOUNTING
EXAM QUESTIONS AND ANSWERS GRADED A+
Two key responsibilities of external auditors? - correct answer
Examining financial statements for accuracy and compliance &
assessing the effectiveness of internal controls
What do internal auditors do? - correct answer Enhance financial
integrity by evaluating internal controls and proactively
identifying weaknesses
What was an effect of the Sarbanes-Oxley Act? - correct answer
Strengthened auditor independence and corporate
accountability.
,Purpose of the Sarbanes-Oxley Act? - correct answer Improve
financial transparency and reduce corporate fraud.
Simple difference between financial and managerial
accounting? - correct answer Financial accounting focuses on
external reporting while managerial accounting focuses on
internal decision-making.
Does managerial accounting need to comply with GAAP? - correct
answer No
Celebrities that have an accounting degree - correct answer Janet
Jackson, John Grisham, Simu Liu, & D'Lo Brown
Which organization is responsible for creating and issuing the
financial accounting standards that form the foundation of
generally accepted accounting principles (GAAP) in the United
States? - correct answer (FASB) Financial Accounting Standards
Board
How often are external financial accounting reports typically
published for stakeholders, such as investors and regulators? -
correct answer Quarterly or Annually
, Which regulation requires the certification and documentation
of internal controls, including an auditor's issuance of an
internal report after evaluating those controls? - correct answer
Sarbanes-Oxley Act
Who was the father of accounting? - correct answer Luca Pacioli
Formula for Net Income - correct answer Revenue - Expenses
Accrual Accounting is a method that... - correct answer Records
revenues when earned and expenses when incurred, regardless
of when cash changes hands
Cash basis accounting is a method that... - correct answer Records
revenues WHEN cash is received and expenses WHEN cash is
paid, ignoring WHEN the money was earned or the service was
provided
Purpose of the income statement? - correct answer Report a
company's revenues and expenses over a period of time
EXAM QUESTIONS AND ANSWERS GRADED A+
Two key responsibilities of external auditors? - correct answer
Examining financial statements for accuracy and compliance &
assessing the effectiveness of internal controls
What do internal auditors do? - correct answer Enhance financial
integrity by evaluating internal controls and proactively
identifying weaknesses
What was an effect of the Sarbanes-Oxley Act? - correct answer
Strengthened auditor independence and corporate
accountability.
,Purpose of the Sarbanes-Oxley Act? - correct answer Improve
financial transparency and reduce corporate fraud.
Simple difference between financial and managerial
accounting? - correct answer Financial accounting focuses on
external reporting while managerial accounting focuses on
internal decision-making.
Does managerial accounting need to comply with GAAP? - correct
answer No
Celebrities that have an accounting degree - correct answer Janet
Jackson, John Grisham, Simu Liu, & D'Lo Brown
Which organization is responsible for creating and issuing the
financial accounting standards that form the foundation of
generally accepted accounting principles (GAAP) in the United
States? - correct answer (FASB) Financial Accounting Standards
Board
How often are external financial accounting reports typically
published for stakeholders, such as investors and regulators? -
correct answer Quarterly or Annually
, Which regulation requires the certification and documentation
of internal controls, including an auditor's issuance of an
internal report after evaluating those controls? - correct answer
Sarbanes-Oxley Act
Who was the father of accounting? - correct answer Luca Pacioli
Formula for Net Income - correct answer Revenue - Expenses
Accrual Accounting is a method that... - correct answer Records
revenues when earned and expenses when incurred, regardless
of when cash changes hands
Cash basis accounting is a method that... - correct answer Records
revenues WHEN cash is received and expenses WHEN cash is
paid, ignoring WHEN the money was earned or the service was
provided
Purpose of the income statement? - correct answer Report a
company's revenues and expenses over a period of time
