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D196 WGU Exam Study Guide with Complete Solutions
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D196 WGU Exam Study Guide with Complete Solutions
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©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.
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,©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.
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, ©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.
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