WGU D252 ACCT 6301 Accounting Research & Critical Thinking OBJECTIVE ASSESSMENT GUIDE Q & S 2026/2027

WGU D252 ACCT 6301 Accounting Research & Critical Thinking OBJECTIVE ASSESSMENT GUIDE Q & S 2026/2027

1. Multiple Choice: Which of the following is a qualitative
characteristic of useful financial information according to the
IFRS Framework?
 a) Comparability
 b) Timeliness
 c) Verifiability
 d) All of the above
 Answer: d) All of the above
 Rationale: The IFRS Framework identifies comparability,
timeliness, and verifiability as qualitative characteristics that
make financial information useful.
2. Fill-in-the-Blank: The theory that suggests accounting
information should reflect the impact of financial
transactions on a company's economic resources is called
the ____________.
 Answer: Economic Entity Assumption
 Rationale: The Economic Entity Assumption is a
fundamental accounting principle that states that the
activities of a business are separate from those of its
owners or other businesses.
3. True/False: The prudence concept in accounting states
that revenue and profits should be recorded as soon as
they are reasonably certain, but expenses should only be
recorded when they are unavoidable.
 Answer: False
 Rationale: The prudence concept, also known as
conservatism, advises that expenses and liabilities should
be recorded as soon as they are reasonably foreseen,