WGU D362 EXAM REVIEW 2026 FINAL
PAPER COMPLETE QUESTIONS AND
ANSWERS.
⫸ Who is responsible for preparing a company's financial
statements?
The internal auditor
The controller
The treasurer
The external auditor Answer: Answer
Correct:In addition to maintaining the firm's financial and cost
accounting systems, preparing taxes, and working closely with the
firm's external auditors, the controller is responsible for preparing the
financial statements.
⫸ Which type of business organization is subject to paying taxes on
its income, while its stockholders are also taxed on the dividends?
Partnership
Sole proprietorship
C-corporation
Limited liability corporation (LLC) Answer: Correct:
A major disadvantage of a C-corporation is that it must pay taxes on
the income it earns. If the corporation pays a cash dividend, the
stockholders must also pay taxes on the dividends they receive. Thus,
, the owners of C-corporations are subject to being taxed twice—first at
the corporate level and then at the personal level when they receive
dividends.
⫸ Who is responsible for managing a company's insurance portfolio?
The controller
The treasurer
The internal auditor
The risk manager Answer: Correct:
The risk manager is responsible for monitoring and managing the
firm's risk exposure in financial and commodity markets and the
firm's relationships with insurance providers.
⫸ What is a key difference between C-corporations and S-
corporations?
C-corporations can be owned by other types of companies and are
easily acquired, while S-corporations cannot be acquired.
Owners of S-corporations have limited liability, while owners of C-
corporations have unlimited liability.
An S-corporation is the default corporation when articles of
incorporation are filed in a state, but C-corporations require an
additional forms.
S-corporations must pay taxes on the income they earn; all profits
earned by C-corporations pass directly to the stockholders. Answer:
rrect
Answer
PAPER COMPLETE QUESTIONS AND
ANSWERS.
⫸ Who is responsible for preparing a company's financial
statements?
The internal auditor
The controller
The treasurer
The external auditor Answer: Answer
Correct:In addition to maintaining the firm's financial and cost
accounting systems, preparing taxes, and working closely with the
firm's external auditors, the controller is responsible for preparing the
financial statements.
⫸ Which type of business organization is subject to paying taxes on
its income, while its stockholders are also taxed on the dividends?
Partnership
Sole proprietorship
C-corporation
Limited liability corporation (LLC) Answer: Correct:
A major disadvantage of a C-corporation is that it must pay taxes on
the income it earns. If the corporation pays a cash dividend, the
stockholders must also pay taxes on the dividends they receive. Thus,
, the owners of C-corporations are subject to being taxed twice—first at
the corporate level and then at the personal level when they receive
dividends.
⫸ Who is responsible for managing a company's insurance portfolio?
The controller
The treasurer
The internal auditor
The risk manager Answer: Correct:
The risk manager is responsible for monitoring and managing the
firm's risk exposure in financial and commodity markets and the
firm's relationships with insurance providers.
⫸ What is a key difference between C-corporations and S-
corporations?
C-corporations can be owned by other types of companies and are
easily acquired, while S-corporations cannot be acquired.
Owners of S-corporations have limited liability, while owners of C-
corporations have unlimited liability.
An S-corporation is the default corporation when articles of
incorporation are filed in a state, but C-corporations require an
additional forms.
S-corporations must pay taxes on the income they earn; all profits
earned by C-corporations pass directly to the stockholders. Answer:
rrect
Answer
