WGU D774 INTRO TO BUSINESS ACCOUNTING | COMPLETE
QUESTIONS WITH 100% GRADED EXPERT SOLUTIONS| 2026 LATEST
UPDATED | GET A+
Two key responsibilities of external auditors? - (Answer)Examining financial statements for
accuracy and compliance & assessing the effectiveness of internal controls
What do internal auditors do? - (Answer)Enhance financial integrity by evaluating internal
controls and proactively identifying weaknesses
What was an effect of the Sarbanes-Oxley Act? - (Answer)Strengthened auditor independence
and corporate accountability.
Purpose of the Sarbanes-Oxley Act? - (Answer)Improve financial transparency and reduce
corporate fraud.
Simple difference between financial and managerial accounting? - (Answer)Financial accounting
focuses on external reporting while managerial accounting focuses on internal decision-making.
Does managerial accounting need to comply with GAAP? - (Answer)No
,Celebrities that have an accounting degree - (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? -
(Answer)(FASB) Financial Accounting Standards Board
How often are external financial accounting reports typically published for stakeholders, such as
investors and regulators? - (Answer)Quarterly or Annually
Which regulation requires the certification and documentation of internal controls, including an
auditor's issuance of an internal report after evaluating those controls? - (Answer)Sarbanes-
Oxley Act
Who was the father of accounting? - (Answer)Luca Pacioli
Formula for Net Income - (Answer)Revenue - Expenses
Accrual Accounting is a method that... - (Answer)Records revenues when earned and expenses
when incurred, regardless of when cash changes hands
, Cash basis accounting is a method that... - (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? - (Answer)Report a company's revenues and expenses over a
period of time
5 core components of an income statement - (Answer)Revenue, expenses, gains, losses, and net
income.
Income statement is also called? - (Answer)Profit & loss statement
What is the statement of owner's equity? - (Answer)Shows how the equity (or value) of the
organization has changed over time
Owner's equity formula - (Answer)Beginning equity + investments - Distributions = Ending
Equity
3 core components of a balance sheet? - (Answer)Assets, liabilities, & Equity
QUESTIONS WITH 100% GRADED EXPERT SOLUTIONS| 2026 LATEST
UPDATED | GET A+
Two key responsibilities of external auditors? - (Answer)Examining financial statements for
accuracy and compliance & assessing the effectiveness of internal controls
What do internal auditors do? - (Answer)Enhance financial integrity by evaluating internal
controls and proactively identifying weaknesses
What was an effect of the Sarbanes-Oxley Act? - (Answer)Strengthened auditor independence
and corporate accountability.
Purpose of the Sarbanes-Oxley Act? - (Answer)Improve financial transparency and reduce
corporate fraud.
Simple difference between financial and managerial accounting? - (Answer)Financial accounting
focuses on external reporting while managerial accounting focuses on internal decision-making.
Does managerial accounting need to comply with GAAP? - (Answer)No
,Celebrities that have an accounting degree - (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? -
(Answer)(FASB) Financial Accounting Standards Board
How often are external financial accounting reports typically published for stakeholders, such as
investors and regulators? - (Answer)Quarterly or Annually
Which regulation requires the certification and documentation of internal controls, including an
auditor's issuance of an internal report after evaluating those controls? - (Answer)Sarbanes-
Oxley Act
Who was the father of accounting? - (Answer)Luca Pacioli
Formula for Net Income - (Answer)Revenue - Expenses
Accrual Accounting is a method that... - (Answer)Records revenues when earned and expenses
when incurred, regardless of when cash changes hands
, Cash basis accounting is a method that... - (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? - (Answer)Report a company's revenues and expenses over a
period of time
5 core components of an income statement - (Answer)Revenue, expenses, gains, losses, and net
income.
Income statement is also called? - (Answer)Profit & loss statement
What is the statement of owner's equity? - (Answer)Shows how the equity (or value) of the
organization has changed over time
Owner's equity formula - (Answer)Beginning equity + investments - Distributions = Ending
Equity
3 core components of a balance sheet? - (Answer)Assets, liabilities, & Equity
