WGU D774 Introduction to
Business Accounting Midterm
exam with correct answers.
WDU D774 covers foundational financial and managerial accounting
principles, including GAAP, financial statements (Income Statement, Balance
Sheet, Cash Flow), and cost analysis
In which country was the double-entry accounting system developed in the
15th century?
Italy
,
Which major economic event followed soon after the Stock Market Crash of
1929?
Great Depression
,
Which economic event immediately preceded and led to the passage of the
Sarbanes-Oxley Act of 2002?
Dot-com bubble
,
,Why are there no standardized regulations relating to the production of
managerial accounting information?
Company managers can generate any information they want to help them
make better decisions, so no outside regulation is needed.
,
What is a common use of managerial accounting information?
Making better planning, operating, and evaluating decisions inside a
company
,
Which report is one of the three primary financial statements?
Income statement
,
Who performs external audits of financial statements?
Certified Public Accountant (CPA)
,
Who selects a corporation’s board of directors?
,Shareholders of the corporation
,
What is an advantage of structuring a business as a corporation?
Legal existence separated from that of the shareholders
,
What is one of the characteristics of a corporation?
Ease of transfer of ownership
,
What is contained in Securities and Exchange Commission Form 10-K?
Annual audited financial statements
,
Why would a company's employees be directly interested in the company's
income statement?
To assess the current profitability of the company, its performance, and its
liquidity
,
, Which information is contained in the reported amount of net income?
The amount by which revenues exceed expenses
,
Which measurement is highlighted in the multi-step format for the income
statement?
Operating income
,
Which label refers to the costs of buying or making the products a company
sells?
Cost of sales
,
Which item is listed first on the income statement?
Revenues
,
Business Accounting Midterm
exam with correct answers.
WDU D774 covers foundational financial and managerial accounting
principles, including GAAP, financial statements (Income Statement, Balance
Sheet, Cash Flow), and cost analysis
In which country was the double-entry accounting system developed in the
15th century?
Italy
,
Which major economic event followed soon after the Stock Market Crash of
1929?
Great Depression
,
Which economic event immediately preceded and led to the passage of the
Sarbanes-Oxley Act of 2002?
Dot-com bubble
,
,Why are there no standardized regulations relating to the production of
managerial accounting information?
Company managers can generate any information they want to help them
make better decisions, so no outside regulation is needed.
,
What is a common use of managerial accounting information?
Making better planning, operating, and evaluating decisions inside a
company
,
Which report is one of the three primary financial statements?
Income statement
,
Who performs external audits of financial statements?
Certified Public Accountant (CPA)
,
Who selects a corporation’s board of directors?
,Shareholders of the corporation
,
What is an advantage of structuring a business as a corporation?
Legal existence separated from that of the shareholders
,
What is one of the characteristics of a corporation?
Ease of transfer of ownership
,
What is contained in Securities and Exchange Commission Form 10-K?
Annual audited financial statements
,
Why would a company's employees be directly interested in the company's
income statement?
To assess the current profitability of the company, its performance, and its
liquidity
,
, Which information is contained in the reported amount of net income?
The amount by which revenues exceed expenses
,
Which measurement is highlighted in the multi-step format for the income
statement?
Operating income
,
Which label refers to the costs of buying or making the products a company
sells?
Cost of sales
,
Which item is listed first on the income statement?
Revenues
,
