d196 - study set wgu questions with
verified solution / already passed
Accounting plays a vital role in the decision-making process. Which action is the
first step in the decision-making process.
Identify the issues
The money that a company needs to buy its land, pay its employees, and buy its
supplies is called capital. What are the potential sources of capital for a business.
Investors, creditors, and retained business earnings.
Accountants measure and communicate the results of business activities.
True
Which primary area of accounting generates reports for internal users.
Management accounting
Which group use financial information to evaluate whether a company will be
able to repay a loan.
Lenders
Which of the primary financial statements reports the resources, obligations, and
owner's equity of a company
Balance sheet
What is the role of the IASB regulating accounting standards
Establish international accounting standards
,What group of people make up the FASB
People from a variety of business-related backgrounds
What is the role of the GASB in setting accounting standards
The GSAB is a private-sector organization the establishes accounting and
financial reporting standards for the U.S. state and local governments
In what way do accountants have an economic incentive to conduct themselves
ethically
The value of the information produced by accountants is related to the
confidence that users have in the reliability of that information
How is it possible for an accountant to intentionally deceive financial statement
users and still technically be in compliance with generally accepted accounting
principles (GAAP)
There is flexibility inherent in the assumptions underlying the preparation of
financial statements
Your boss has approached you with a concerning letter from the IRS and ask you
to explain the role of the IRS in regulating accounting standards. Based on the
role of the IRS, what would be the problem detailed in the letter
The company has not filed its taxes in accordance to the law
Anika is considering investing in a tech company that is known for developing
smart home appliances. Before investing, Annika first wants to ensure that the
companies past performance has been satisfactory and that the company
manages its cash flows well. What type of accounting information would provide
this evidence for Anika
Financial reports
, Alliah company just released it's public accounting data for 2019. Which user of
accounting information will monitor this data to ensure that the company is
providing sufficient information for investors.
Government agencies
A new product line manager approaches the accounting department in order to
understand the past performance of the product line he has been asked to
manage in the future. Which role of accounting involves obtaining and using
financial information to determine the financial health and performance of a
business or product line?
Evaluation
You read in the newspaper that a local company you are familiar with has been
found guilty in court of publishing financial statements that are false and
misleading to users of those financial statements. In this situation, what could the
American Institute of Certified Public Accountants (AICPA) do in response to the
accountants who were found guilty of unethical conduct in accounting practices?
Implement professional sanctions
What is the correct summary sequence in the accounting cycle?
Analyze, Record, Summarize, Prepare
Business documents, such as a sales invoice, a purchase order, or a check stub,
are an important part of the accounting process. From an accounting cycle
standpoint, what is purpose of business documents?
To confirm that a transaction has occurred
What is the purpose of the financial accounting cycle?
To turn transactions into financial statements and provide useful financial
information for decision makers
verified solution / already passed
Accounting plays a vital role in the decision-making process. Which action is the
first step in the decision-making process.
Identify the issues
The money that a company needs to buy its land, pay its employees, and buy its
supplies is called capital. What are the potential sources of capital for a business.
Investors, creditors, and retained business earnings.
Accountants measure and communicate the results of business activities.
True
Which primary area of accounting generates reports for internal users.
Management accounting
Which group use financial information to evaluate whether a company will be
able to repay a loan.
Lenders
Which of the primary financial statements reports the resources, obligations, and
owner's equity of a company
Balance sheet
What is the role of the IASB regulating accounting standards
Establish international accounting standards
,What group of people make up the FASB
People from a variety of business-related backgrounds
What is the role of the GASB in setting accounting standards
The GSAB is a private-sector organization the establishes accounting and
financial reporting standards for the U.S. state and local governments
In what way do accountants have an economic incentive to conduct themselves
ethically
The value of the information produced by accountants is related to the
confidence that users have in the reliability of that information
How is it possible for an accountant to intentionally deceive financial statement
users and still technically be in compliance with generally accepted accounting
principles (GAAP)
There is flexibility inherent in the assumptions underlying the preparation of
financial statements
Your boss has approached you with a concerning letter from the IRS and ask you
to explain the role of the IRS in regulating accounting standards. Based on the
role of the IRS, what would be the problem detailed in the letter
The company has not filed its taxes in accordance to the law
Anika is considering investing in a tech company that is known for developing
smart home appliances. Before investing, Annika first wants to ensure that the
companies past performance has been satisfactory and that the company
manages its cash flows well. What type of accounting information would provide
this evidence for Anika
Financial reports
, Alliah company just released it's public accounting data for 2019. Which user of
accounting information will monitor this data to ensure that the company is
providing sufficient information for investors.
Government agencies
A new product line manager approaches the accounting department in order to
understand the past performance of the product line he has been asked to
manage in the future. Which role of accounting involves obtaining and using
financial information to determine the financial health and performance of a
business or product line?
Evaluation
You read in the newspaper that a local company you are familiar with has been
found guilty in court of publishing financial statements that are false and
misleading to users of those financial statements. In this situation, what could the
American Institute of Certified Public Accountants (AICPA) do in response to the
accountants who were found guilty of unethical conduct in accounting practices?
Implement professional sanctions
What is the correct summary sequence in the accounting cycle?
Analyze, Record, Summarize, Prepare
Business documents, such as a sales invoice, a purchase order, or a check stub,
are an important part of the accounting process. From an accounting cycle
standpoint, what is purpose of business documents?
To confirm that a transaction has occurred
What is the purpose of the financial accounting cycle?
To turn transactions into financial statements and provide useful financial
information for decision makers
