1
WGU D774 Intro To Business
Accounting- Complete Actual
Questions With Answers 2026
Two key responsibilities of external auditors? - correct-answer -Examining
financial statements for accuracy and compliance & assessing the effectiveness of
internal controls
What do internal auditors do? - correct-answer -Enhance financial integrity by
evaluating internal controls and proactively identifying weaknesses
What was an effect of the Sarbanes-Oxley Act? - correct-answer -Strengthened
auditor independence and corporate accountability.
Purpose of the Sarbanes-Oxley Act? - correct-answer -Improve financial
transparency and reduce corporate fraud.
, 2
Simple difference between financial and managerial accounting? - correct-answer
-Financial accounting focuses on external reporting while managerial accounting
focuses on internal decision-making.
Does managerial accounting need to comply with GAAP? - correct-answer -No
Celebrities that have an accounting degree - correct-answer -Janet Jackson, John
Grisham, Simu Liu, & D'Lo Brown
Which organization is responsible for creating and issuing the financial accounting
standards that form the foundation of generally accepted accounting principles
(GAAP) in the United States? - correct-answer -(FASB) Financial Accounting
Standards Board
How often are external financial accounting reports typically published for
stakeholders, such as investors and regulators? - correct-answer -Quarterly or
Annually
, 3
Which regulation requires the certification and documentation of internal
controls, including an auditor's issuance of an internal report after evaluating
those controls? - correct-answer -Sarbanes-Oxley Act
Who was the father of accounting? - correct-answer -Luca Pacioli
Formula for Net Income - correct-answer -Revenue - Expenses
Accrual Accounting is a method that... - correct-answer -Records revenues when
earned and expenses when incurred, regardless of when cash changes hands
Cash basis accounting is a method that... - correct-answer -Records revenues
WHEN cash is received and expenses WHEN cash is paid, ignoring WHEN the
money was earned or the service was provided
Purpose of the income statement? - correct-answer -Report a company's
revenues and expenses over a period of time
WGU D774 Intro To Business
Accounting- Complete Actual
Questions With Answers 2026
Two key responsibilities of external auditors? - correct-answer -Examining
financial statements for accuracy and compliance & assessing the effectiveness of
internal controls
What do internal auditors do? - correct-answer -Enhance financial integrity by
evaluating internal controls and proactively identifying weaknesses
What was an effect of the Sarbanes-Oxley Act? - correct-answer -Strengthened
auditor independence and corporate accountability.
Purpose of the Sarbanes-Oxley Act? - correct-answer -Improve financial
transparency and reduce corporate fraud.
, 2
Simple difference between financial and managerial accounting? - correct-answer
-Financial accounting focuses on external reporting while managerial accounting
focuses on internal decision-making.
Does managerial accounting need to comply with GAAP? - correct-answer -No
Celebrities that have an accounting degree - correct-answer -Janet Jackson, John
Grisham, Simu Liu, & D'Lo Brown
Which organization is responsible for creating and issuing the financial accounting
standards that form the foundation of generally accepted accounting principles
(GAAP) in the United States? - correct-answer -(FASB) Financial Accounting
Standards Board
How often are external financial accounting reports typically published for
stakeholders, such as investors and regulators? - correct-answer -Quarterly or
Annually
, 3
Which regulation requires the certification and documentation of internal
controls, including an auditor's issuance of an internal report after evaluating
those controls? - correct-answer -Sarbanes-Oxley Act
Who was the father of accounting? - correct-answer -Luca Pacioli
Formula for Net Income - correct-answer -Revenue - Expenses
Accrual Accounting is a method that... - correct-answer -Records revenues when
earned and expenses when incurred, regardless of when cash changes hands
Cash basis accounting is a method that... - correct-answer -Records revenues
WHEN cash is received and expenses WHEN cash is paid, ignoring WHEN the
money was earned or the service was provided
Purpose of the income statement? - correct-answer -Report a company's
revenues and expenses over a period of time
