WGU MBA PROGRAM C213 ACCOUNTING OA EXAM 2
LATEST VERSIONS 2023-2024 ACTUAL EXAM 200
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES|ALREADY GRADED A+
VERSION A
What is NOT one of the three primary financial statements – ANSWERStatement of retained earnings
The initials GAAP stand for – ANSWER- Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector is
the – ANSWER- Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to
establish accounting standards for publicly held companies – ANSWERSecurities and Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting
firms – ANSWER- making management decisions
The organization that develops worldwide accounting standards is the: –
ANSWER- International Accounting Standards Board (IASB)
The initials CPA stand for – ANSWER- certified public accountant
Which of the following financial statements reports a company’s
resources, obligations, and owner’s equity – ANSWER- Balance Sheet
Which of the following financial statements reports the excess of a
company’s revenues over its expenses – ANSWER- Income statement
Which of the following financial statements reports the amount of cash
collected and paid out by a company – ANSWER- statement of cash
flows
The emphasis in financial accounting is on which of the following
external user groups – ANSWER- investors and creditors
The primary internal group that uses accounting information is: –
ANSWER- management
Internal reports are generally used by: – ANSWER- management
Which of the following is NOT an external user of financial
information?- – ANSWER- management
Which of the following is NOT true of the Financial Accounting
Standards Board (FASB) – ANSWER- It is a government agency
Which of the following is NOT a service typically provided by large
public accounting firms – ANSWER- making management decisions
Standards established by the International Accounting Standards Board
are referred to as: – ANSWER- International Financial Accounting
Standards
Which of the following is NOT a reason for the integration of worldwide
accounting standards – ANSWER- the theoretical necessity of a common
set of accounting standards.
the preservation of systematic, quantitative record of an activity –
ANSWER- bookkeeping
used by a business to handle routine bookkeeping tasks and to structure
the information so it can be used to evaluate the eprfomance and
financial status of a business – ANSWER- accounting system
Which of the following is the most correct definition of accounting –
ANSWER- A system for providing quantitative information, primarily
financial in nature, about economic entities that is intended to be useful
in making economic decisions
Which is NOT a key component of the definition of accounting –
ANSWER- Qualitative
What is NOT typically true of accounting information – ANSWER- The
information relates to future time periods.
What is true about the double-entry system of bookkeeping – ANSWERIt was developed in the 1300s 1400s in Italy.
Businesses use accounting systems to: – ANSWER- Analyze
transactions; Handle routine bookkeeping tasks; Evaluate performance
and health of the business.
What is not a function of accounting – ANSWER- Executing sales
transactions for organizations
Generally accepted accounting principles are – ANSWER- Developed by
accounting rule makers
info that is intended to be useful in making decisions about the future –
ANSWER- accounting information
who is financial accounting information primarily used by? – ANSWERexternal users
the name given to accounting systems designed for internal users –
ANSWER- managerial accounting