WGU D196 LATEST 2024/2025 ACTUAL EXAM
COMPETE 200+ QUESTIONS AND
CORRECT VERIFIED ANSWERS (100%
CORRECT ANSWERS)/ WGU D196 LATEST
2024/2025 (GUARANTEED PASS)
1. Accounting plays a vital role in the decision-making process. Which
action is the first step in the decision-making process? - ANSWER-
Identify the issue.
2. The money that a company needs to buy its land, pay its employees,
and buy its supplies is called capital. What are the potential sources of
capital for a business? - ANSWER-Investors, creditors, and retained
business earnings, Investors, creditors, and retained business earnings are
all common sources of capital for a business.
3. Which primary area of accounting generates reports for internal users? -
ANSWER-Management accounting generates reports for internal users,
such as budgets and cost analyses.
4. Which group uses financial information to evaluate whether a company
will be able to repay a loan? - ANSWER-Lenders
5. Which of the primary financial statements reports the resources,
obligations, and owner's equity of a company? - ANSWER-The balance
sheet reports the resources of a company (the assets), the company's
obligations (the liabilities), and the owners' equity, which represents the
difference between what is owned (assets) and what is owed (liabilities).
6. What is the role of the IASB in regulating accounting standards? -
ANSWER-Establish international accounting standards
The IASB establishes worldwide accounting standards. The IASB is a
private organization based in London. Currently, the IASB does not have
legal authority to set accounting standards for U.S. companies, although
, the SEC does allow the use of IASB standards for non-U.S. companies
with shares traded on U.S. stock exchanges. The IASB is a standalone
organization (overseen by a Board of Trustees); it is not under the
jurisdiction of the SEC, the European Union, the United Nations, or any
other governmental body. The IASB members represent a broad business
constituency including auditors, corporate accountants, analysts, and even
accounting professors.
7. What group of people make up the FASB? - ANSWER-People from a
variety of business-related backgrounds
8. What is the role of the GASB in setting accounting standards? -
ANSWER-The GASB is a private-sector organization that establishes
accounting and financial reporting standards for U.S. state and local
governments.
9. In what way do accountants have an economic incentive to conduct
themselves ethically? - ANSWER-The value of the information produced
by accountants is related to the confidence that users have in the
reliability of that information.
10.How is it possible for an accountant to intentionally deceive financial
statement users and yet still technically be in compliance with generally
accepted accounting principles (GAAP)? - ANSWER-There is flexibility
inherent in the assumptions underlying the preparation of financial
statements.
11.Your boss approaches you with a concerning letter from the IRS and asks
you to explain the role of the IRS in regulating accounting standards.
Based on the role of the IRS, what could be the problem detailed in the
letter? - ANSWER-The company has not filed its taxes in accordance
with the law.
, 12.Anika is considering investing in a tech company that is known for
developing smart home appliances. Before investing, Anika first wants to
ensure that the company's past financial performance has been
satisfactory and that the company manages its cash flows well. What type
of accounting information would provide this evidence for Anika? -
ANSWER-Financial reports
13.Alliah Company just released its public accounting data for 20X9. Which
user of accounting information will monitor this data to ensure that the
company is providing sufficient information for investors? - ANSWER-
Government agencies
14.A new product line manager approaches the accounting department in
order to understand the past performance of the product line he has been
asked to manage in the future. Which role of accounting involves
obtaining and using financial information to determine the financial
health and performance of a business or product line? - ANSWER-
Evaluation
15.You read in the newspaper that a local company you are familiar with has
been found guilty in court of publishing financial statements that are false
and misleading to users of those financial statements. In this situation,
what could the American Institute of Certified Public Accountants
(AICPA) do in response to the accountants who were found guilty of
unethical conduct in accounting practices? - ANSWER-Implement
professional sanctions
16.What is the correct summary sequence in the accounting cycle? -
ANSWER-Analyze, Record, Summarize, Prepare
17.Business documents, such as a sales invoice, a purchase order, or a check
stub, are an important part of the accounting process. From an accounting
cycle standpoint, what is purpose of business documents? - ANSWER-To
confirm that a transaction has occurred
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