WGU MBA PROGRAM C213 ACCOUNTING OA EXAM 2 LATEST VERSIONS ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES|ALREADY GRADED
A+
Accounting -(ANSWER)Recording of day-to-day financial activities of a company and the organization of
that information into summary reports used to evaluate the companies financial status.
Three primary financial statements in financial accounting -(ANSWER)1) The Balance Sheet
2) The Income Statement
3) The Statement of Cash Flows
Balance Sheet -(ANSWER)A financial statement that reports assets, liabilities, and owner's equity on a
specific date.
Income Statement -(ANSWER)A financial statement showing the revenue and expenses for a fiscal
period. A company's expenses are subtracted from its revenues in computing net income.
Statement of Cash Flows -(ANSWER)the amount of cash collected and paid out by a company in the
following three types of activities, operating, investing, and financing.
Financial Accounting Users -(ANSWER)Lenders, investors, company management, suppliers, customers,
employees, competitors, government agencies, politicians and the press.
FASB (Financial Accounting Standards Board) -(ANSWER)A private body that sets the accounting
standards in the United States.
SEC Securities and Exchange Commission -(ANSWER)Regulates US stock exchanges
AICPA (American Institute of Certified Public Accountants) -(ANSWER)Professional organization of
certified public accountants in the US.
, WGU MBA PROGRAM C213 ACCOUNTING OA EXAM 2 LATEST VERSIONS ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES|ALREADY GRADED
A+
Three factors that make right now a time of significant change in accounting are: -(ANSWER)1)
Globalization of Accounting Standards
2) Information Technology
3) Accounting scandals including the 2001 Sarbanes-Oxley Act.
Financial Statements -(ANSWER)Increase the amount of financial information about a company to
attract investors, lenders and other parties interested in the companies financial status.
The Balance Sheet -(ANSWER)A report that shows the company's financial position at a specified point in
time and lists the company's resources (assets), obligations (liabilities), and net ownership interest
(owner's equity).
Notes to the Financial Statement -(ANSWER)Provide information on the accounting assumptions used in
preparing the statements and also provide supplemental information not included in the statements
themselves.
An audit performed by accountants from outside a company that increases the reliance that users can
place on the information in the companies financial statements -(ANSWER)External Audit Report
Relevant -(ANSWER)Information that is provided on a timely basis that can be used to assess the past
and project the future.
Reliable -(ANSWER)Information that represents exactly what it is supposed to represent.
Comparability -(ANSWER)Ability to compare the accounting information of different companies because
they use the same accounting principles.
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES|ALREADY GRADED
A+
Accounting -(ANSWER)Recording of day-to-day financial activities of a company and the organization of
that information into summary reports used to evaluate the companies financial status.
Three primary financial statements in financial accounting -(ANSWER)1) The Balance Sheet
2) The Income Statement
3) The Statement of Cash Flows
Balance Sheet -(ANSWER)A financial statement that reports assets, liabilities, and owner's equity on a
specific date.
Income Statement -(ANSWER)A financial statement showing the revenue and expenses for a fiscal
period. A company's expenses are subtracted from its revenues in computing net income.
Statement of Cash Flows -(ANSWER)the amount of cash collected and paid out by a company in the
following three types of activities, operating, investing, and financing.
Financial Accounting Users -(ANSWER)Lenders, investors, company management, suppliers, customers,
employees, competitors, government agencies, politicians and the press.
FASB (Financial Accounting Standards Board) -(ANSWER)A private body that sets the accounting
standards in the United States.
SEC Securities and Exchange Commission -(ANSWER)Regulates US stock exchanges
AICPA (American Institute of Certified Public Accountants) -(ANSWER)Professional organization of
certified public accountants in the US.
, WGU MBA PROGRAM C213 ACCOUNTING OA EXAM 2 LATEST VERSIONS ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES|ALREADY GRADED
A+
Three factors that make right now a time of significant change in accounting are: -(ANSWER)1)
Globalization of Accounting Standards
2) Information Technology
3) Accounting scandals including the 2001 Sarbanes-Oxley Act.
Financial Statements -(ANSWER)Increase the amount of financial information about a company to
attract investors, lenders and other parties interested in the companies financial status.
The Balance Sheet -(ANSWER)A report that shows the company's financial position at a specified point in
time and lists the company's resources (assets), obligations (liabilities), and net ownership interest
(owner's equity).
Notes to the Financial Statement -(ANSWER)Provide information on the accounting assumptions used in
preparing the statements and also provide supplemental information not included in the statements
themselves.
An audit performed by accountants from outside a company that increases the reliance that users can
place on the information in the companies financial statements -(ANSWER)External Audit Report
Relevant -(ANSWER)Information that is provided on a timely basis that can be used to assess the past
and project the future.
Reliable -(ANSWER)Information that represents exactly what it is supposed to represent.
Comparability -(ANSWER)Ability to compare the accounting information of different companies because
they use the same accounting principles.
