WGU D103 Learning Checks (31) MODULE QUIZZES 2025 Western Governors University

WGU D103 Learning Checks (31) MODULE
QUIZZES 2025 Western Governors University




WGU D103 Learning Checks (31)
Learning Check Lesson 1
1
What entity was established by the federal government to help develop and standardize financial
information presented to stockholders?
SEC (Securities and Exchange Commission)
Correct. The SEC (Securities and Exchange Commission) was established by the federal
government to help develop and standardize financial information presented to
stockholders
2
What group selects members of the FASB?
FAF (Financial Accounting Foundation)
Correct. The FAF (Financial Accounting Foundation) selects members of the FASB
3
How is the role of the Securities and Exchange Commission (SEC) in the formulation of
accounting standards best described?
The SEC relies on FASB to develop standards but gives advice and recommendations to
the private sector as needed.
Correct. The SEC relies on FASB to develop standards but gives advice and
recommendations to the private sector as needed.
4
What is a significant difference between the FASB (Financial Accounting Standards Board) and its
predecessor, the APB?
Increased independence
Correct. APB members kept their positions in the private sector. FASB members must
sever all ties to firms, companies, or institutions.
5
What organization has been responsible for setting U.S. accounting standards?
The Financial Accounting Standards Board
Correct. The Financial Accounting Standards Board has been responsible for setting U.S.
accounting standards.
6
What is a characteristic of generally accepted accounting principles?
They are a common set of standards and principles.
Correct. GAAP is a generally accepted accounting
principles.

, Learning Check Lesson 2
1
What is true of generally accepted accounting principles?
GAAP changes over time as the nature of the business environment changes.
Correct. GAAP changes over time as the nature of the business environment changes.
2
Which publication is considered a GAAP document?
APB Opinions
Correct. APB Opinions were issued by the FASB predecessor and are included in major
sources of GAAP.
3
What is part of generally accepted accounting
principles?
APB Opinions
Correct. APB Opinions, issued between, 1959 and 1973, have been integrated in GAAP
codification.
4
Which entity provides most significant current source of generally accepted accounting
principles?
FASB
Correct. The most significant current source of generally accepted accounting principles
is the FASB.
Learning Check Lesson 3
1
What is true regarding the FASB Codification?
The Codification was created to simplify user access.
Correct. The Codification was created to simplify user
access.

, 2
What does the Financial Accounting Standards Board Accounting Standards Codification do?
Eliminates nonessential information and simplifies user access to all authoritative U.S.
generally accepted accounting principles
Correct. The FASB codification eliminates nonessential information and simplifies user
access.
Learning Check Lesson 4
1
What does a conceptual framework provide guidance on?
Identifying the boundaries of financial reporting, selecting the transactions, other
events, and circumstances to be represented
Correct. A conceptual framework establishes the concepts that provide guidance for
identifying the boundaries of financial reporting, selecting the transactions, other events,
and circumstances to be represented, and determining how transactions, events and
circumstances should be recognized and measured.
2
The conceptual framework for financial reporting consists of how many
levels?
3
Correct. There are three levels of the conceptual framework: the objective of financial
reporting; the qualitative characteristics and elements of the financial statements; the
recognition, measurement, and disclosure concepts.
3
In the conceptual framework for financial reporting, what provides "the how" – the implementation
of accounting?
Measurement, recognition and disclosure concepts such as assumptions, principles, and
constraints Correct. Measurement, recognition and disclosure concepts such as
assumptions, principles, and constraints provide "the how" – the implementation of
accounting.
4
Why is a conceptual framework necessary?
It increases financial statement users’ understanding of and confidence in financial
reporting. Correct. A conceptual framework is necessary because it allows the profession
to quickly solve new and emerging issues; enables standard setters to issue more
useful and consistent pronouncements over time; and increases financial statement
users’ understanding of and confidence in financial reporting.
5
Which level of the conceptual framework is devoted to elements of financial statements and the
qualitative characteristics?
2nd
Correct. The second level of the conceptual framework provides the qualitative
characteristics and elements of the financial statements - it is the bridge between the
'why' and 'how' of accounting.
Learning Check Lesson 5
1
What is an ingredient of the fundamental quality of relevance?
Predictive value
Correct. Predictive value, confirmatory value, and materiality are all ingredients of the
fundamental quality of relevance.
2
What is an enhancing quality of financial
statements?
Comparability
Correct. "Comparability" is an enhancing quality of financial reporting.
3
What is an ingredient of the fundamental quality of faithful representation?
Free from error
Correct. The fundamental qualities of faithful representation include: completeness,
neutrality, and free from error.
Learning Check Lesson 6
1