WGU C213 Critical and Objective Assessment Exam Questions and verified and correct Marking Scheme, Newest Guaranteed 2024/2025
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Course
WGU C213 Accounting for Decision Makers
Institution
WGU C213 Accounting For Decision Makers
WGU C213 Critical and Objective Assessment Exam Questions and verified and correct Marking Scheme, Newest Guaranteed 2024/2025
As William is preparing the end of year financial statements, he has been asked to reconsider the timing of revenues and expenses in order to report less volatile earnin...
WGU C213 Critical and Objective
Assessment Exam Questions and
verified and correct Marking Scheme,
Newest Guaranteed 2024/2025
As William is preparing the end of year financial statements, he
has been asked to reconsider the timing of revenues and
expenses in order to report less volatile earnings. This is an
example of
Window dressing
Meeting internal targets
Meeting external expectations
Income smoothing - Correct Answer: Income Smoothing
As William is preparing the end of year financial statements, he
realizes that the earnings are not quite up to par for the large
loan application that is being currently processed. He decides to
stretch the assumptions just enough to be able to meet the
requirements for the loan application. This is an example of
The fact that GAAP is not subject to interpretation.
The fact that only one true earnings number exists.
The flexibility managers have within GAAP to report one
earnings number from among many possibilities.
The philosophy that earnings management within limits is
ethical. - Correct Answer: The flexibility managers have within
GAAP to report one earnings number from among many
possibilities.
Earnings management through aggressive accounting is best
exemplified by
Changing the interest rate used in accounting for leases without
describing the change in the notes to the financial statements.
Timing transactions such that large one-time gains and losses
occur in the same quarter.
Capitalizing as assets expenditures that have no future
economic benefit.
Changing the useful life of a depreciable asset and fully
disclosing it in the notes. - Correct Answer: Changing the useful
life of a depreciable asset and fully disclosing it in the notes.
Excessive earnings management typically begins as a result of
pressure to meet the expectations of stakeholders.
a downturn in business.
a violation of generally accepted accounting principles.
, a regulatory investigation. - Correct Answer: a downturn in
business.
Which of the following does Sarbanes-Oxley NOT require
management to do?
Support a much stronger board and audit committee in each
public company
Develop and enforce an officer code of ethics
Prepare a statement to accompany the audit report
Make loans to executive officers and directors - Correct
Answer: Make loans to executive officers and directors
The Sarbanes-Oxley Act establishes
Constraints on auditors
Independent oversight of auditors
All of these are correct
Constraints on company management - Correct Answer: All of
these are correct
According to Sarbanes-Oxley, who are auditors required to report
to and be retained by?
Chief Financial Officer
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