Accounting plays a vital role in the decision-making process. Which action is the first step in the decision-making process.
Identify the issues
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...
D196 -WGU EXAM STUDY GUIDE
QUESTIONS AND ANSWERS TOP
GRADED 2025
Accounting plays a vital role in the decision-making process. Which action is the first step
in the decision-making process.
Identify the issues
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.
Investors, creditors, and retained business earnings.
Accountants measure and communicate the results of business activities.
True
Which primary area of accounting generates reports for internal users.
Management accounting
Which group use financial information to evaluate whether a company will be able to
repay a loan.
Lenders
Which of the primary financial statements reports the resources, obligations, and
owner's equity of a company
Balance sheet
What is the role of the IASB regulating accounting standards
Establish international accounting standards
What group of people make up the FASB
People from a variety of business-related backgrounds
What is the role of the GASB in setting accounting standards
WGU D196 Exam
,WGU D196 Exam
The GSAB is a private-sector organization the establishes accounting and financial
reporting standards for the U.S. state and local governments
In what way do accountants have an economic incentive to conduct themselves ethically
The value of the information produced by accountants is related to the confidence that
users have in the reliability of that information
How is it possible for an accountant to intentionally deceive financial statement users
and still technically be in compliance with generally accepted accounting principles
(GAAP)
There is flexibility inherent in the assumptions underlying the preparation of financial
statements
Your boss has approached you with a concerning letter from the IRS and ask you to
explain the role of the IRS in regulating accounting standards. Based on the role of the
IRS, what would be the problem detailed in the letter
The company has not filed its taxes in accordance to the law
Anika is considering investing in a tech company that is known for developing smart
home appliances. Before investing, Annika first wants to ensure that the companies past
performance has been satisfactory and that the company manages its cash flows well.
What type of accounting information would provide this evidence for Anika
Financial reports
Alliah company just released it's public accounting data for 2019. Which user of
accounting information will monitor this data to ensure that the company is providing
sufficient information for investors.
Government agencies
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
WGU D196 Exam
, WGU D196 Exam
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?
Evaluation
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?
Implement professional sanctions
What is the correct summary sequence in the accounting cycle?
Analyze, Record, Summarize, Prepare
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?
To confirm that a transaction has occurred
What is the purpose of the financial accounting cycle?
To turn transactions into financial statements and provide useful financial information
for decision makers
What is a transaction in accounting?
An interaction in which two parties exchange something of value
In the context of the financial accounting cycle, what is the definition of an account?
A specific accounting record that provides an efficient way to categorize similar types of
transactions
What is an arm's-length transaction?
An exchange between two independent parties
Which event represents a transaction recorded as part of the financial accounting cycle?
The sale of a product for cash or on account
WGU D196 Exam
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 PossibleA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
