WSP ACCOUNTING QUESTIONS AND
ANSWERS 2026 COMPLETE STUDY GUIDE
◉ 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
◉ Accounting Principle #2 Answer: Accrual accounting dictates
when you recognize revenue and expenses
Revenue recognition must be recorded when earned and
measurable
ANSWERS 2026 COMPLETE STUDY GUIDE
◉ 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
◉ Accounting Principle #2 Answer: Accrual accounting dictates
when you recognize revenue and expenses
Revenue recognition must be recorded when earned and
measurable
