WGU C213 Preparedness baseline Exam knowledge Questions with Expertly written solution 2024/2025
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Course
WGU C213 Accounting for Decision Makers
Institution
WGU C213 Accounting For Decision Makers
WGU C213 Preparedness baseline Exam knowledge Questions with Expertly written solution 2024/2025
Which of the following groups on the earnings management continuum are always considered ethical?
o Aggressive accounting and fraudulent reporting
o Deceptive accounting and savvy transaction timin...
WGU C213 Preparedness baseline
Exam knowledge Questions with
Expertly written solution 2024/2025
Which of the following groups on the earnings management
continuum are always considered ethical?
o Aggressive accounting and fraudulent reporting
o Deceptive accounting and savvy transaction timing
o There is not a clear definition as to which of these are ethical
and which are not
o Savvy transaction timing and aggressive accounting - Correct
Answer There is not a clear definition as to which of these are
ethical and which are not
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
o Window dressing
o Meeting internal targets
o Income smoothing
o Meeting external expectations - Correct Answer Meeting
external expectations
Earnings management through deceptive accounting is best
exemplified by
,o Timing transactions such that large one-time gains and losses
occur in the same quarter.
o Capitalizing as assets expenditures that have no future
economic benefit.
o Changing the interest rate used in accounting for leases
without describing the change in the notes to the financial
statements.
o Changing the useful life of a depreciable asset and fully
disclosing it in the notes. - Correct Answer Changing the
interest rate used in accounting for leases without describing the
change in the notes to the financial statements
Which of the following items of the earnings management
continuum is in the correct order?
o strategic matching, change in methods or estimates with little
of no disclosure, fictitious transactions, change in methods or
estimates with full disclosure, non-GAAP accounting
o 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
o change in methods or estimates with full disclosure, non-GAAP
accounting, fictitious transactions, strategic matching, change in
methods or estimates with little or no disclosure
o non-GAAP accounting, change in methods or estimates with
little or no disclosure, strategic matching, fictitious transactions,
change in methods or estimates with full disclosure - Correct
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
, The Public Company Accounting Oversight Board
o Conducts inspections of accounting firms
o Establishes requirements for entry into the CPA profession
o Reviews tax returns of public companies
o Enforces compliance with the Foreign Corrupt Practices Act -
Correct Answer Conducts inspections of accounting firms
The Sarbanes-Oxley Act establishes
o Constraints on auditors
o Constraints on company management
o All of these are correct
o Independent oversight of auditors - Correct Answer All of
these are correct
The Public Company Accounting Oversight Board is NOT
required to
o Conduct inspections of accounting firms
o Establish standards relating to the preparation of audit reports
for public companies
o Enforce compliance with the Foreign Corrupt Practices Act
o Register all public accounting firms that provide audits for
public companies - Correct Answer Enforce compliance with the
Foreign Corrupt Practices Act
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