D196 WGU Latest Exam And 100%
Correct Answers 2025-2026 Updated.
What is the role and purpose of accounting? - Answer To help track income and
expenditures, and to provide investors, management, and government with financial
information.
Purpose: To accumulate, measure, and communicate financial information about businesses
and other organizations.
· Who uses accounting information and why? - Answer Potential investors and creditors, but
basically everyone uses it. They use it to make internal and external business decisions.
· What are the important influences on accounting? - Answer the development of the
"generally accepted accounting principles"(GAAP), international business and ethical
consideration.
· What is the role of ethics in accounting? - Answer Being an accountant requires honesty
and integrity, as well as professional judgement. So having ethics in accounting is very
important.
What are the three main functions of accounting? - Answer Analyzing, Bookkeeping, and
Evaluating(ABE).
The Financial Accounting Standards Board(FASB) - Answer An organization responsible for
studying accounting issues and establishing standards
a) Private group
b) Public process
c) Establishes GAAP
The Governmental Accounting Standards Board(GASB) - Answer A private, non governmental
organization who sets accounting and financial reporting standards for state and local
governments
Securities and Exchange Commission(SEC) - Answer Regulates stock exchanges
a) Has legal authority to regulate financial markets and accounting
b) Usually defers to the FASB on accounting matters
The Public Company Accounting Oversight Board(PCAOB) - Answer Oversees all accounting
firms.
, Internal Revenue Service(IRS) - Answer Collects and regulates income taxes
International Accounting Standards Board(IASB) - Answer The FASB of the world(except the
USA)
Assets - Answer assets are what we OWN.
Common Assets:
-) Cash
-) Accounts receivable
-) Inventory
-) Buildings
-) Prepaid
Liabilities - Answer An obligation to pay cash, transfer other assets, or provide services to
someone.
A) Liabilities are what we OWE.
B) Common Liabilities:
-) Accounts Payable
-) Taxes Payable
-) Mortgage Payable
-) Unearned Revenue
Owners Equity - Answer The owners share of earnings.
A) Sources of equity:
-) Capital/Common Stock
-) Retained Earnings
What is the Accounting Cycle and how does it work? - Answer The accounting cycle is the
procedure for analyzing, recording, summarizing, and preparing the transactions of a business.
The accounting cycle works by turning transactions into financial statements through these
steps:
Step 1: Analyze Transactions
Step 2: Record the effects of transactions
Step 3: Summarize the effects
Step 4: Prepare reports
Correct Answers 2025-2026 Updated.
What is the role and purpose of accounting? - Answer To help track income and
expenditures, and to provide investors, management, and government with financial
information.
Purpose: To accumulate, measure, and communicate financial information about businesses
and other organizations.
· Who uses accounting information and why? - Answer Potential investors and creditors, but
basically everyone uses it. They use it to make internal and external business decisions.
· What are the important influences on accounting? - Answer the development of the
"generally accepted accounting principles"(GAAP), international business and ethical
consideration.
· What is the role of ethics in accounting? - Answer Being an accountant requires honesty
and integrity, as well as professional judgement. So having ethics in accounting is very
important.
What are the three main functions of accounting? - Answer Analyzing, Bookkeeping, and
Evaluating(ABE).
The Financial Accounting Standards Board(FASB) - Answer An organization responsible for
studying accounting issues and establishing standards
a) Private group
b) Public process
c) Establishes GAAP
The Governmental Accounting Standards Board(GASB) - Answer A private, non governmental
organization who sets accounting and financial reporting standards for state and local
governments
Securities and Exchange Commission(SEC) - Answer Regulates stock exchanges
a) Has legal authority to regulate financial markets and accounting
b) Usually defers to the FASB on accounting matters
The Public Company Accounting Oversight Board(PCAOB) - Answer Oversees all accounting
firms.
, Internal Revenue Service(IRS) - Answer Collects and regulates income taxes
International Accounting Standards Board(IASB) - Answer The FASB of the world(except the
USA)
Assets - Answer assets are what we OWN.
Common Assets:
-) Cash
-) Accounts receivable
-) Inventory
-) Buildings
-) Prepaid
Liabilities - Answer An obligation to pay cash, transfer other assets, or provide services to
someone.
A) Liabilities are what we OWE.
B) Common Liabilities:
-) Accounts Payable
-) Taxes Payable
-) Mortgage Payable
-) Unearned Revenue
Owners Equity - Answer The owners share of earnings.
A) Sources of equity:
-) Capital/Common Stock
-) Retained Earnings
What is the Accounting Cycle and how does it work? - Answer The accounting cycle is the
procedure for analyzing, recording, summarizing, and preparing the transactions of a business.
The accounting cycle works by turning transactions into financial statements through these
steps:
Step 1: Analyze Transactions
Step 2: Record the effects of transactions
Step 3: Summarize the effects
Step 4: Prepare reports
