©BRAINBARTER 2024/2025 ALL RIGHTS RESERVED.
WSP Accounting Exam With Latest
Questions And Answers. Updated And
Verified.
What is accounting? - Answer✔Standard way of reporting a business' performance
Generally accepted accounting principles (GAAP) - Answer✔A standardized set of rules for
company repoprting
Who governs the FASB (Financial Accounting standards board) - Answer✔Securities and
Exchange Commission (SEC)
What is SFAS? - Answer✔Statements of financial accounting standards
How are FASB and SFAS connected? - Answer✔FASB communicates rules through SFAS which
makes GAAP
How is the FASB structured? - Answer✔Governed by people who are appointed, supposed to
act independently
What is the IFRS? - Answer✔International Financial Reporting Standards- they determine rules
for international reporting
Accounting Assumption #1 - Answer✔Accounting entity- The company is its own entity
seperate from its owners and therefore can report its health to the general public, pay taxes,
sue, etc
Accounting Assumption #2 - Answer✔The firm is a going concern- the firm should report their
financials like they will be going on indefinitely
Accounting Assumption #3 - Answer✔Measurement- Firm should report their financial
statements monetarily so things like customer loyalty and customer satisfaction aren't reported
Accounting Assumption #4 - Answer✔Periodicity- Many companies are required to report
quarterly and annually
Accounting Principle #1 - Answer✔Companies should report company's resources at the
historical cost because it can be difficult to appraise value
1|Page
, ©BRAINBARTER 2024/2025 ALL RIGHTS RESERVED.
Accounting Principle #2 - Answer✔Accrual accounting dictates when you recognize revenue and
expenses
Revenue recognition must be recorded when earned and measurable
Accounting Principle #3 - Answer✔Matching principle- costs associated with making a product
must be reported during the same time as the revenue generated from said product
Accounting Principle #4 - Answer✔Full disclosure- companies must reveal all relevant economic
information that they determine is relevant
Major accounting restraints #1 - Answer✔Estimates and judgements- certain measures cant be
performed accurately so companies should use conservative estimates
Major accounting restraints #2 - Answer✔Materiality- you have to present things that are
material- this is determined by the size of the firm.
I.e. a hundred thousand dollar loan wouldn't be reported by apple but would be by a smaller
company
Major accounting restraints #3 - Answer✔consistency- each company has to prepare financial
statements using a consistent set of assumptions and techniques
Major accounting restraints #4 - Answer✔Conservatism- financial statements should always be
reported with a downward bias meaning conservative estimates
10k - Answer✔Annual filing published at the end of the fiscal year that covers the company's
finances and business
when does a 10k have to be filed? - Answer✔Within 60-90 days of end of fiscal year
10Q - Answer✔quarterly filing that are less detailed
Why should you be skeptical of 10qs - Answer✔they are reviewed, but not audited by CPAs
8k - Answer✔Report filed immediately (72 hours) after material item is going to effect stock
price`
14a - Answer✔Proxy Statement: tells you about the management team, board of directors, the
CPA firm. Used to vote on these people. It tells you how much someone is making
s-1 - Answer✔filed when company decides to go public
s-4 - Answer✔filed when company is public
20f - Answer✔annual filing for companies that have foreign securities trading
Income statement - Answer✔A financial statement showing the revenue and expenses for a
fiscal period.
2|Page
WSP Accounting Exam With Latest
Questions And Answers. Updated And
Verified.
What is accounting? - Answer✔Standard way of reporting a business' performance
Generally accepted accounting principles (GAAP) - Answer✔A standardized set of rules for
company repoprting
Who governs the FASB (Financial Accounting standards board) - Answer✔Securities and
Exchange Commission (SEC)
What is SFAS? - Answer✔Statements of financial accounting standards
How are FASB and SFAS connected? - Answer✔FASB communicates rules through SFAS which
makes GAAP
How is the FASB structured? - Answer✔Governed by people who are appointed, supposed to
act independently
What is the IFRS? - Answer✔International Financial Reporting Standards- they determine rules
for international reporting
Accounting Assumption #1 - Answer✔Accounting entity- The company is its own entity
seperate from its owners and therefore can report its health to the general public, pay taxes,
sue, etc
Accounting Assumption #2 - Answer✔The firm is a going concern- the firm should report their
financials like they will be going on indefinitely
Accounting Assumption #3 - Answer✔Measurement- Firm should report their financial
statements monetarily so things like customer loyalty and customer satisfaction aren't reported
Accounting Assumption #4 - Answer✔Periodicity- Many companies are required to report
quarterly and annually
Accounting Principle #1 - Answer✔Companies should report company's resources at the
historical cost because it can be difficult to appraise value
1|Page
, ©BRAINBARTER 2024/2025 ALL RIGHTS RESERVED.
Accounting Principle #2 - Answer✔Accrual accounting dictates when you recognize revenue and
expenses
Revenue recognition must be recorded when earned and measurable
Accounting Principle #3 - Answer✔Matching principle- costs associated with making a product
must be reported during the same time as the revenue generated from said product
Accounting Principle #4 - Answer✔Full disclosure- companies must reveal all relevant economic
information that they determine is relevant
Major accounting restraints #1 - Answer✔Estimates and judgements- certain measures cant be
performed accurately so companies should use conservative estimates
Major accounting restraints #2 - Answer✔Materiality- you have to present things that are
material- this is determined by the size of the firm.
I.e. a hundred thousand dollar loan wouldn't be reported by apple but would be by a smaller
company
Major accounting restraints #3 - Answer✔consistency- each company has to prepare financial
statements using a consistent set of assumptions and techniques
Major accounting restraints #4 - Answer✔Conservatism- financial statements should always be
reported with a downward bias meaning conservative estimates
10k - Answer✔Annual filing published at the end of the fiscal year that covers the company's
finances and business
when does a 10k have to be filed? - Answer✔Within 60-90 days of end of fiscal year
10Q - Answer✔quarterly filing that are less detailed
Why should you be skeptical of 10qs - Answer✔they are reviewed, but not audited by CPAs
8k - Answer✔Report filed immediately (72 hours) after material item is going to effect stock
price`
14a - Answer✔Proxy Statement: tells you about the management team, board of directors, the
CPA firm. Used to vote on these people. It tells you how much someone is making
s-1 - Answer✔filed when company decides to go public
s-4 - Answer✔filed when company is public
20f - Answer✔annual filing for companies that have foreign securities trading
Income statement - Answer✔A financial statement showing the revenue and expenses for a
fiscal period.
2|Page
