WGU D774 Intro to Business Accounting
1. In which country was the double-entry accounting sys- Italy
tem developed in the 15th century?
2. Which major economic event followed soon after the Great Depression
Stock Market Crash of 1929?
3. Which economic event immediately preceded and led Dot-com bubble
to the passage of the Sarbanes-Oxley Act of 2002?
4. Why are there no standardized regulations relating to Company managers can
the production of managerial accounting information? generate any information
they want to help them
make better decisions, so
no outside regulation is
needed.
5. What is a common use of managerial accounting infor- Making better planning,
mation? operating, and evaluating
decisions inside a compa-
ny
6. Which report is one of the three primary financial Income statement
statements?
7. Who performs external audits of financial statements? Certified Public Accountant
(CPA)
8. Who selects a corporation's board of directors? Shareholders of the cor-
poration
9. What is an advantage of structuring a business as a Legal existence separated
corporation? from that of the share-
holders
, WGU D774 Intro to Business Accounting
10. What is one of the characteristics of a corporation? Ease of transfer of owner-
ship
11. What is contained in Securities and Exchange Commis- Annual audited financial
sion Form 10-K? statements
12. Why would a company's employees be directly inter- To assess the current prof-
ested in the company's income statement? itability of the company,
its performance, and its
liquidity
13. Which information is contained in the reported The amount by which rev-
amount of net income? enues exceed expenses
14. Which measurement is highlighted in the multi-step Operating income
format for the income statement?
15. Which label refers to the costs of buying or making the Cost of sales
products a company sells?
16. Which item is listed first on the income statement? Revenues
17. Which item is reported in an income statement? Revenues
18. In which situation does a company report revenue? When products or services
are sold
19. Which item should be reported as revenue in the in- Amount earned from cus-
come statement? tomers for the sale of
goods
20. Alliah Company is preparing to do an initial public of- Revenue and expenses
fering (IPO) of its shares next year. Alliah knows that
investors use a company's net income in their valua-
1. In which country was the double-entry accounting sys- Italy
tem developed in the 15th century?
2. Which major economic event followed soon after the Great Depression
Stock Market Crash of 1929?
3. Which economic event immediately preceded and led Dot-com bubble
to the passage of the Sarbanes-Oxley Act of 2002?
4. Why are there no standardized regulations relating to Company managers can
the production of managerial accounting information? generate any information
they want to help them
make better decisions, so
no outside regulation is
needed.
5. What is a common use of managerial accounting infor- Making better planning,
mation? operating, and evaluating
decisions inside a compa-
ny
6. Which report is one of the three primary financial Income statement
statements?
7. Who performs external audits of financial statements? Certified Public Accountant
(CPA)
8. Who selects a corporation's board of directors? Shareholders of the cor-
poration
9. What is an advantage of structuring a business as a Legal existence separated
corporation? from that of the share-
holders
, WGU D774 Intro to Business Accounting
10. What is one of the characteristics of a corporation? Ease of transfer of owner-
ship
11. What is contained in Securities and Exchange Commis- Annual audited financial
sion Form 10-K? statements
12. Why would a company's employees be directly inter- To assess the current prof-
ested in the company's income statement? itability of the company,
its performance, and its
liquidity
13. Which information is contained in the reported The amount by which rev-
amount of net income? enues exceed expenses
14. Which measurement is highlighted in the multi-step Operating income
format for the income statement?
15. Which label refers to the costs of buying or making the Cost of sales
products a company sells?
16. Which item is listed first on the income statement? Revenues
17. Which item is reported in an income statement? Revenues
18. In which situation does a company report revenue? When products or services
are sold
19. Which item should be reported as revenue in the in- Amount earned from cus-
come statement? tomers for the sale of
goods
20. Alliah Company is preparing to do an initial public of- Revenue and expenses
fering (IPO) of its shares next year. Alliah knows that
investors use a company's net income in their valua-
