Exam (elaborations)
D196 WGU Exam Study Guide with Complete Solutions
- Course
- Institution
D196 WGU Exam Study Guide with Complete Solutions
[Show more]
Content preview
©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AMWEST VIRGINIA UNIVERSIRTY- (WV) : 26506
D196 WGU Exam Study Guide with Complete Solutions
What is vertical analysis and what information does it provide? - ✔️✔️Vertical analysis is
used to compare percentages at the same point in time across companies in the same
industry. It provides information on how a company's financial value or financial
gain/loss compares to another similar company.
· What are common-size financial statements and how are they used? - ✔️✔️Common-
Size Financial Statements are included in most of the main statements and reduces
figures to be more easily understood(such as reducing numbers to percentages).
Horizontal and Vertical analysis is used to analyze a company's performance over a
certain period of time.
· Who uses accounting information and why? - ✔️✔️Potential investors and creditors use
accounting information, but basically everyone uses accounting information. They use it
to make internal and external business decisions.
· What are the important influences on accounting? - ✔️✔️Important influences on
accounting is the development of the "generally accepted accounting
principles"(GAAP), international business and ethical consideration.
1
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
· What is the role of ethics in accounting? - ✔️✔️Being an accountant requires honesty
and integrity, as well as professional judgement. So having ethics in accounting is very
important.
What are the three main functions of accounting? - ✔️✔️The 3 main functions of
accounting are: Analyzing, Bookkeeping, and Evaluating(ABE).
The Financial Accounting Standards Board(FASB) - ✔️✔️An organization responsible for
studying accounting issues and establishing standards
a) Private group
b) Public process
c) Establishes GAAP
The Governmental Accounting Standards Board(GASB) - ✔️✔️A private, non
governmental organization who sets accounting and financial reporting standards for
state and local governments
Securities and Exchange Commission(SEC) - ✔️✔️Regulates stock exchanges
a) Has legal authority to regulate financial markets and accounting
b) Usually defers to the FASB on accounting matters
The Public Company Accounting Oversight Board(PCAOB) - ✔️✔️Oversees all
accounting firms.
2
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
What is the role and purpose of accounting ? - ✔️✔️Role: To help track income and
expenditures, and to provide investors, management, and government with financial
information.
Purpose: To accumulate, measure, and communicate financial information about
businesses and other organizations.
Internal Revenue Service(IRS) - ✔️✔️Collects and regulates income taxes
International Accounting Standards Board(IASB) - ✔️✔️The FASB of the world(except the
USA)
Assets - ✔️✔️assets are what we OWN.
Common Assets:
-) Cash
-) Accounts receivable
-) Inventory
-) Buildings
-) Prepaid
Liabilities - ✔️✔️An obligation to pay cash, transfer other assets, or provide services to
someone.
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller OliviaWest. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now