WGU D774 Introduction to Business Accounting Exam
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In which country was the double-entry accounting system developed in the 15th
century?
ANS:<< Italy
Which major economic event followed soon after the Stock Market Crash of
1929?
ANS:<< Great Depression
Which economic event immediately preceded and led to the passage of the
Sarbanes-Oxley Act of 2002?
ANS:<< Dot-com bubble
Why are there no standardized regulations relating to the production of
managerial accounting information?
ANS:<< 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?
ANS:<< Making better planning, operating, and evaluating decisions inside a
company
Which report is one of the three primary financial statements?
ANS:<< Income statement
Who performs external audits of financial statements?
ANS:<< Certified Public Accountant (CPA)
,Who selects a corporation’s board of directors?
ANS:<< Shareholders of the corporation
What is an advantage of structuring a business as a corporation?
ANS:<< Legal existence separated from that of the shareholders
What is one of the characteristics of a corporation?
ANS:<< Ease of transfer of ownership
What is contained in Securities and Exchange Commission Form 10-K?
ANS:<< Annual audited financial statements
Why would a company's employees be directly interested in the company's
income statement?
ANS:<< To assess the current profitability of the company, its performance, and
its liquidity
Which information is contained in the reported amount of net income?
ANS:<< The amount by which revenues exceed expenses
Which measurement is highlighted in the multi-step format for the income
statement?
ANS:<< Operating income
Which label refers to the costs of buying or making the products a company
sells?
ANS:<< Cost of sales
Which item is listed first on the income statement?
ANS:<< Revenues
Which item is reported in an income statement?
ANS:<< Revenues
In which situation does a company report revenue?
ANS:<< When products or services are sold
Which item should be reported as revenue in the income statement?
ANS:<< Amount earned from customers for the sale of goods
,Alliah Company is preparing to do an initial public offering (IPO) of its shares
next year. Alliah knows that investors use a company’s net income in their
valuation models to determine how much an IPO company’s shares are worth.
Alliah’s founders are eager for this IPO to do well so that their many years of
work will be validated in the stock market. Here are some data from Alliah
Company’s financial statements:Inventory
Accounts Payable
Expenses
Capital Stock (also called Paid-in Capital)
Accounts Receivable
Cash
Retained Earnings
Revenue
Building
Loans Payable
Which items are used to compute Alliah’s net income?
ANS:<< Revenue and expenses
The financial records for Freedom Rock Bicycles contain the following
accounts.
Salary expense
Cash
Sales
Inventory
Income tax expense
Accounts receivable
Which items should be used to compute Freedom Rock’s net income?
ANS:<< Sales, salary expense, and income tax expense
, The amount of a company’s assets and the amount of the company’s liabilities
are known. Which computation should be performed to determine the
company’s owners’ equity amount according to the accounting equation?
ANS:<< Assets minus liabilities
Alliah Company’s financial records include these accounts at the end of the
year.
Land
Accounts Receivable
Buildings
Inventory
Loans Payable
Accounts Payable
Retained Earnings
Capital Stock (also called Paid-in Capital)
Cash
Which set of items is a complete listing of Alliah’s current assets?
ANS:<< Cash, accounts receivable, and inventory
How does capital stock differ from inventory?
ANS:<< Capital stock is equity; inventory is an asset.
Endothon Company has these accounts in its financial records at the end of the
year.
Land
Retained Earnings
Accounts Receivable
Loans Payable
Accounts Payable
Capital Stock (also called Paid-in Capital)
Cash
Fully Solved & Updated ( Latest Version Verified for
Accuracy ) High Yield Questions and Answers | Solved
100% Correct | Frequently Most Tested Questions |
Expert Guarantee Pass | Newest Version!!!
In which country was the double-entry accounting system developed in the 15th
century?
ANS:<< Italy
Which major economic event followed soon after the Stock Market Crash of
1929?
ANS:<< Great Depression
Which economic event immediately preceded and led to the passage of the
Sarbanes-Oxley Act of 2002?
ANS:<< Dot-com bubble
Why are there no standardized regulations relating to the production of
managerial accounting information?
ANS:<< 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?
ANS:<< Making better planning, operating, and evaluating decisions inside a
company
Which report is one of the three primary financial statements?
ANS:<< Income statement
Who performs external audits of financial statements?
ANS:<< Certified Public Accountant (CPA)
,Who selects a corporation’s board of directors?
ANS:<< Shareholders of the corporation
What is an advantage of structuring a business as a corporation?
ANS:<< Legal existence separated from that of the shareholders
What is one of the characteristics of a corporation?
ANS:<< Ease of transfer of ownership
What is contained in Securities and Exchange Commission Form 10-K?
ANS:<< Annual audited financial statements
Why would a company's employees be directly interested in the company's
income statement?
ANS:<< To assess the current profitability of the company, its performance, and
its liquidity
Which information is contained in the reported amount of net income?
ANS:<< The amount by which revenues exceed expenses
Which measurement is highlighted in the multi-step format for the income
statement?
ANS:<< Operating income
Which label refers to the costs of buying or making the products a company
sells?
ANS:<< Cost of sales
Which item is listed first on the income statement?
ANS:<< Revenues
Which item is reported in an income statement?
ANS:<< Revenues
In which situation does a company report revenue?
ANS:<< When products or services are sold
Which item should be reported as revenue in the income statement?
ANS:<< Amount earned from customers for the sale of goods
,Alliah Company is preparing to do an initial public offering (IPO) of its shares
next year. Alliah knows that investors use a company’s net income in their
valuation models to determine how much an IPO company’s shares are worth.
Alliah’s founders are eager for this IPO to do well so that their many years of
work will be validated in the stock market. Here are some data from Alliah
Company’s financial statements:Inventory
Accounts Payable
Expenses
Capital Stock (also called Paid-in Capital)
Accounts Receivable
Cash
Retained Earnings
Revenue
Building
Loans Payable
Which items are used to compute Alliah’s net income?
ANS:<< Revenue and expenses
The financial records for Freedom Rock Bicycles contain the following
accounts.
Salary expense
Cash
Sales
Inventory
Income tax expense
Accounts receivable
Which items should be used to compute Freedom Rock’s net income?
ANS:<< Sales, salary expense, and income tax expense
, The amount of a company’s assets and the amount of the company’s liabilities
are known. Which computation should be performed to determine the
company’s owners’ equity amount according to the accounting equation?
ANS:<< Assets minus liabilities
Alliah Company’s financial records include these accounts at the end of the
year.
Land
Accounts Receivable
Buildings
Inventory
Loans Payable
Accounts Payable
Retained Earnings
Capital Stock (also called Paid-in Capital)
Cash
Which set of items is a complete listing of Alliah’s current assets?
ANS:<< Cash, accounts receivable, and inventory
How does capital stock differ from inventory?
ANS:<< Capital stock is equity; inventory is an asset.
Endothon Company has these accounts in its financial records at the end of the
year.
Land
Retained Earnings
Accounts Receivable
Loans Payable
Accounts Payable
Capital Stock (also called Paid-in Capital)
Cash
