WSP ACCOUNTING MODULE QUIZ
QUESTIONS AND ANSWERS 2026 FULL
REVIEW PACK
◉ Matching Principle. Answer: Under the matching principle, costs
associated with making a product must be recorded during the same
period as revenue generated from that product, costs recognized
when the revenues were earned
◉ Full Disclosure. Answer: companies must reveal all relevant
economic information that they determine to make a difference to
its users
◉ Where do GAAP and IFRS differ on accrual accounting?. Answer:
GAAP uses very specific guidelines for revenue recognition for
industries with unique issues (like software and real estate), IFRS is
more general and up to interpretation
◉ Major accounting constraints. Answer: 1. Estimates & Judgements
2. Materiality
3. Consistency
4. Conservatism
,◉ Estimates & Judgements. Answer: Certain measurements cannot
be performed completely accurately, and must therefore utilize
conservative estimates and judgments.
◉ Materiality. Answer: Inclusion and disclosure of financial
transactions in financial statements hinge on their size and effect on
the company performing them
◉ Consistency. Answer: For each company the preparation of
financial statements must utilize measurement techniques and
assumption which are consistent from one period to another, Ie.
toggling between LIFO v. FIFO depending on how you want
inventories to eb priced
◉ Conservatism. Answer: Financial statements should be prepared
with a downward measurement bias. Assets and revenues should
not be overstated, while liabilities and expenses should not be
understated
◉ 10-K (Annual filing). Answer: At end of fiscal year, publicly traded
companies must file a 10-k which is thorough overview of their
businesses and finances as well as their financial statements, 60-90
days within year end, has md&a section on management
commentary
, ◉ 10-Q. Answer: includes financial statements and non-financial
data, 40-45 days after quarter end, these are not required to be
audited whereas 10-Ks are
◉ 8-K. Answer: required filing any time a company undergoes or
announces a materially significant event, earnings press release, an
acquisition, disposal of assets, etc.
◉ !0-Q v. 10-K. Answer: 1. Both: include footnotes/management
commentary on state of business, but 10-k more detailed
2. 10-k will usually contain more details regarding stock options,
fixed/intangible assets, debt, and future expectations and include
extensive management, as well as commentary on the state of the
business (MD&A)
3. 10-k reports are audited by an independent firm while 10-q filings
are reviewed by a CPA
◉ Form 14-A. Answer: Proxy statement, is required filing prior to
companies' annual shareholder meetings.
1. contains detailed information about top officers and their
compensations
2. the form often solicits shareholder votes (proxies) for Board
nominees and other important matters
QUESTIONS AND ANSWERS 2026 FULL
REVIEW PACK
◉ Matching Principle. Answer: Under the matching principle, costs
associated with making a product must be recorded during the same
period as revenue generated from that product, costs recognized
when the revenues were earned
◉ Full Disclosure. Answer: companies must reveal all relevant
economic information that they determine to make a difference to
its users
◉ Where do GAAP and IFRS differ on accrual accounting?. Answer:
GAAP uses very specific guidelines for revenue recognition for
industries with unique issues (like software and real estate), IFRS is
more general and up to interpretation
◉ Major accounting constraints. Answer: 1. Estimates & Judgements
2. Materiality
3. Consistency
4. Conservatism
,◉ Estimates & Judgements. Answer: Certain measurements cannot
be performed completely accurately, and must therefore utilize
conservative estimates and judgments.
◉ Materiality. Answer: Inclusion and disclosure of financial
transactions in financial statements hinge on their size and effect on
the company performing them
◉ Consistency. Answer: For each company the preparation of
financial statements must utilize measurement techniques and
assumption which are consistent from one period to another, Ie.
toggling between LIFO v. FIFO depending on how you want
inventories to eb priced
◉ Conservatism. Answer: Financial statements should be prepared
with a downward measurement bias. Assets and revenues should
not be overstated, while liabilities and expenses should not be
understated
◉ 10-K (Annual filing). Answer: At end of fiscal year, publicly traded
companies must file a 10-k which is thorough overview of their
businesses and finances as well as their financial statements, 60-90
days within year end, has md&a section on management
commentary
, ◉ 10-Q. Answer: includes financial statements and non-financial
data, 40-45 days after quarter end, these are not required to be
audited whereas 10-Ks are
◉ 8-K. Answer: required filing any time a company undergoes or
announces a materially significant event, earnings press release, an
acquisition, disposal of assets, etc.
◉ !0-Q v. 10-K. Answer: 1. Both: include footnotes/management
commentary on state of business, but 10-k more detailed
2. 10-k will usually contain more details regarding stock options,
fixed/intangible assets, debt, and future expectations and include
extensive management, as well as commentary on the state of the
business (MD&A)
3. 10-k reports are audited by an independent firm while 10-q filings
are reviewed by a CPA
◉ Form 14-A. Answer: Proxy statement, is required filing prior to
companies' annual shareholder meetings.
1. contains detailed information about top officers and their
compensations
2. the form often solicits shareholder votes (proxies) for Board
nominees and other important matters
