WGU C213 Accounting for Decision Makers 2023\/ 2024 Exam Version | Questions and Verified Answers | A Grade<\/p>\n\n\n\n
WGU C213 Accounting for Decision Makers
2023\/ 2024 Exam Version | Questions and
Verified Answers | A Grade
Q: If a company does NOT record accrued wages expense at the end of the year, how does this
affect the year-end financial statements?
Answer:
Overstates owner’s equity
Q: Estimates are used in many instances when recording a company’s results of operations.
Which of the following would NOT require an estimate to be made?
Answer:
Wages earned
Q: If the total amount for Insurance Expense is inadvertently posted to Prepaid Insurance at the
end of the year, what will be the effect on the year-end financial statements?
Answer:
All are true:
Expenses will be understated
Owner’s equity will be overstated
Net income will be overstated
Q: Which one of the following errors causes net income to be understated?
Answer:
Failure to record revenue earned but not billed<\/p>\n\n\n\n
Q: Failure to record the used portion of supplies on hand during the month has the following
effect on the financial statements prepared at the end of the month
Answer:
Overstates assets
Q: Which of the following requires that every company’s annual report contain an internal
control report?
Answer:
Sarbanes-Oxley Act
Q: Which of the following are usually members of a company’s audit committee?
Answer:
Members of the board of directors who are not officers of the company
Q: If an external auditor suspects wrongdoing in financial statements, the concerns should be
addressed to
Answer:
The audit committee
Q: The Sarbanes-Oxley Act requires that an internal control report be included in every
company’s annual report. Which one of the following is NOT one of the requirements of the
internal control report?
Answer:
Describe in detail the internal controls of the company<\/p>\n\n\n\n
Q: Which of the following is a poor internal accounting control feature?
Answer:
Combining accountability with custodianship
Q: income smoothing
Answer:
The practice of carefully timing the recognition of revenues and expenses to even out the amount
of reported earnings from one year to the next.
Q: Internal Earnings Targets
Answer:
An important tool in motivating managers to increase sale efforts, control costs, and use
resources more efficiently.
Q: window dressing
Answer:
presenting the company accounts in a favorable light – to flatter the business performance
Q: As William is preparing the end of year financial statements, he has been asked to review
the accrual judgments and estimates to see if the originally calculated net loss can be changed to
a net profit. This is an example of
Answer:
Meeting external expectations<\/p>\n\n\n\n
Q: Which of the following groups on the earnings management continuum are always
considered ethical?
Answer:
There is not a clear definition as to which of these are ethical and which are not
Q: Which of the following items of the earnings management continuum is in the correct order?
Answer:
strategic matching, change in methods or estimates with full disclosure, change in methods or
estimates with little or no disclosures, non-GAAP accounting, fictitious transactions
Q: Earnings management through strategic matching is best exemplified by
Answer:
Timing transactions such that large one-time gains and losses occur in the same quarter.
Q: According to Sarbanes-Oxley, who are auditors required to report to and be retained by?
Answer:
Audit committee
Q: The Sarbanes-Oxley Act establishes
Answer:
Constraints on auditors
Independent oversight of auditors
Constraints on company management
Powered by https:\/\/learnexams.com\/search\/study?query=<\/a><\/p>\n\n\n\n