WGU C213 - Accounting for MBA's
1. 1.1 Which of the following is NOT a key component of
the definition of
accounting?
Correct Answer: Qualitative
2. 1.1 Which of the following is NOT a function of
accounting
Correct Answer: Executing sales transactions for organizations
3. 1.1 Which of the following is the most correct definition
of accounting?
Correct Answer: A system for providing quantitative
information, primarily financial in nature, about economic entities
that is intended to be useful in making economic decisions.
4. 1.1 Businesses use accounting systems to
Correct Answer: Analyze transactions
Handle routine bookkeeping tasks
Evaluate the performance and health of the business
**All of these are correct
5. 1.1 Which of the following is NOT typically true of
accounting information?-
Correct Answer: The information relates to future time periods.
6. 1.2 Which of the following is NOT one of the three
primary financial statements?
Correct Answer: Statement of retained earnings
,7. 1.2 Which of the following financial statements reports
a company's resources, obligations, and owner's equity?
Correct Answer: Balance sheet
8. 1.2 Which of the following financial statements reports
the excess of a company's revenues over its expenses?
Correct Answer: Income statement
9. 1.2 Which of the following financial statements reports
the amount of cash collected and paid out by a company?
Correct Answer: Statement of cash flows
10. 1.3 The emphasis in financial accounting is on which of
the following
external user groups?
Correct Answer: Investors and creditors
11. 1.3 The primary internal group that uses accounting
information is
Correct Answer: Management
12. 1.3 Internal reports are generally used by
Correct Answer: Management
13. 1.3 Which of the following is NOT an external user of
financial information-
Correct Answer: Management
14. 1.4 Which of the following is NOT true of the Financial
Accounting Standards Board (FASB)?
Correct Answer: It is a government agency
15. 1.4 Generally accepted accounting principles are
,Correct Answer: Developed by accounting rule makers
16. 1.4 The initials GAAP stand for
Correct Answer: Generally Accepted Accounting Principles
17. 1.4 The current standard-setting board for accounting
in the private sector is the
Correct Answer: Financial Accounting Standards Board (FASB)
18. 1.5 Which of the following organizations has specific
legal authority to
establish accounting standards for publicly held
companies?
Correct Answer: Securities and Exchange Commission (SEC)
19. 1.5 The organization that develops worldwide
accounting standards is
The
Correct Answer: International Accounting Standards Board
(IASB)
20. 1.5 The initials CPA stand for
Correct Answer: Certified Public Accountant
21. 1.5 Which of the following is NOT a service typically
provided by large public accounting firms?
Correct Answer: Making management decisions
22. 1.5 Which of the following is the government agency
that stipulates the rules and regulations that govern the
collection of taxes in the United States?-
Correct Answer: Internal Revenue Service
, 23. 1.6 Which of the following is NOT a reason for the
integration of worldwide accounting standards?
Correct Answer: the theoretical necessity of a common set of
accounting
standards
24. 1.6 The International Accounting Standards Board
(IASB) is charged with developing worldwide accounting
practices
Correct Answer: True
25. 1.6 With the current state of information technology,
investors outside
a company are now allowed access to a company's internal
database of
financial information and do their own customized analysis
of a firm's performance.
Correct Answer: False
While the technology may be available, companies are still not
allowing outsiders access to their internal accounting records.
26. 1.6 Increased federal oversight of the audit process
resulted from the
passage of the following act of Congress –
Correct Answer: Sarbanes-Oxley Act
27. 2.1 A borrower benefits from providing financial
information regarding income and expenses in the form of
a lower interest rate on the loan because of reduced
uncertainty for the lender with regard to repayment
Correct Answer: True
1. 1.1 Which of the following is NOT a key component of
the definition of
accounting?
Correct Answer: Qualitative
2. 1.1 Which of the following is NOT a function of
accounting
Correct Answer: Executing sales transactions for organizations
3. 1.1 Which of the following is the most correct definition
of accounting?
Correct Answer: A system for providing quantitative
information, primarily financial in nature, about economic entities
that is intended to be useful in making economic decisions.
4. 1.1 Businesses use accounting systems to
Correct Answer: Analyze transactions
Handle routine bookkeeping tasks
Evaluate the performance and health of the business
**All of these are correct
5. 1.1 Which of the following is NOT typically true of
accounting information?-
Correct Answer: The information relates to future time periods.
6. 1.2 Which of the following is NOT one of the three
primary financial statements?
Correct Answer: Statement of retained earnings
,7. 1.2 Which of the following financial statements reports
a company's resources, obligations, and owner's equity?
Correct Answer: Balance sheet
8. 1.2 Which of the following financial statements reports
the excess of a company's revenues over its expenses?
Correct Answer: Income statement
9. 1.2 Which of the following financial statements reports
the amount of cash collected and paid out by a company?
Correct Answer: Statement of cash flows
10. 1.3 The emphasis in financial accounting is on which of
the following
external user groups?
Correct Answer: Investors and creditors
11. 1.3 The primary internal group that uses accounting
information is
Correct Answer: Management
12. 1.3 Internal reports are generally used by
Correct Answer: Management
13. 1.3 Which of the following is NOT an external user of
financial information-
Correct Answer: Management
14. 1.4 Which of the following is NOT true of the Financial
Accounting Standards Board (FASB)?
Correct Answer: It is a government agency
15. 1.4 Generally accepted accounting principles are
,Correct Answer: Developed by accounting rule makers
16. 1.4 The initials GAAP stand for
Correct Answer: Generally Accepted Accounting Principles
17. 1.4 The current standard-setting board for accounting
in the private sector is the
Correct Answer: Financial Accounting Standards Board (FASB)
18. 1.5 Which of the following organizations has specific
legal authority to
establish accounting standards for publicly held
companies?
Correct Answer: Securities and Exchange Commission (SEC)
19. 1.5 The organization that develops worldwide
accounting standards is
The
Correct Answer: International Accounting Standards Board
(IASB)
20. 1.5 The initials CPA stand for
Correct Answer: Certified Public Accountant
21. 1.5 Which of the following is NOT a service typically
provided by large public accounting firms?
Correct Answer: Making management decisions
22. 1.5 Which of the following is the government agency
that stipulates the rules and regulations that govern the
collection of taxes in the United States?-
Correct Answer: Internal Revenue Service
, 23. 1.6 Which of the following is NOT a reason for the
integration of worldwide accounting standards?
Correct Answer: the theoretical necessity of a common set of
accounting
standards
24. 1.6 The International Accounting Standards Board
(IASB) is charged with developing worldwide accounting
practices
Correct Answer: True
25. 1.6 With the current state of information technology,
investors outside
a company are now allowed access to a company's internal
database of
financial information and do their own customized analysis
of a firm's performance.
Correct Answer: False
While the technology may be available, companies are still not
allowing outsiders access to their internal accounting records.
26. 1.6 Increased federal oversight of the audit process
resulted from the
passage of the following act of Congress –
Correct Answer: Sarbanes-Oxley Act
27. 2.1 A borrower benefits from providing financial
information regarding income and expenses in the form of
a lower interest rate on the loan because of reduced
uncertainty for the lender with regard to repayment
Correct Answer: True
