Principles of Financial and Managerial
Accounting - D196 Pre-Assessment
Questions All Solved Correct.
What is the effect of a company's accounting department maintaining high ethical standards?
The company's accounting information will increase in value.
The company's accounting information will decrease in value.
The company can report more favorable results in its financial statements.
The company can hire fewer accountants to do the same amount of work. - Answer The
company's accounting information will increase in value.
Why might employees be interested in their company's financial accounting information?
Financial statement data are often used in determining employee bonuses.
Financial statement data provide detailed internal budget information.
Financial statement data are used to record long term liabilities.
Financial statement data provide item-by-item product cost information. - Answer Financial
statement data are often used in determining employee bonuses.
Which group establishes financial accounting rules in the United States?
American Institute of Certified Public Accountants (AICPA)
International Accounting Standards Board (IASB)
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB) - Answer Financial Accounting Standards Board
(FASB)
Which report is one of the three primary financial statements?
Statement of cash flows
Statement of management accounting
Statement of stakeholder funds
Statement of the accounting cycle - Answer Statement of cash flows
, A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation?
Assets decrease by $5,000; revenues increase by $5,000.
Assets decrease by $5,000; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000. - Answer Assets decrease by
$5,000; expenses increase by $5,000.
What is a transaction?
A type of commonly used accounting software
Two parties exchanging something of value
An example of an online business document
A category of merchandiser or retailer - Answer Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; revenues increase by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; owners' equity increases by $80,000. - Answer Assets increase
by $80,000; liabilities increase by $80,000.
What is the impact of expenses on the accounting equation?
Expenses increase owners' equity.
Expenses decrease owners' equity.
Expenses decrease liabilities.
Expenses increase liabilities. - Answer Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable both examples of?
Liability
Accounting - D196 Pre-Assessment
Questions All Solved Correct.
What is the effect of a company's accounting department maintaining high ethical standards?
The company's accounting information will increase in value.
The company's accounting information will decrease in value.
The company can report more favorable results in its financial statements.
The company can hire fewer accountants to do the same amount of work. - Answer The
company's accounting information will increase in value.
Why might employees be interested in their company's financial accounting information?
Financial statement data are often used in determining employee bonuses.
Financial statement data provide detailed internal budget information.
Financial statement data are used to record long term liabilities.
Financial statement data provide item-by-item product cost information. - Answer Financial
statement data are often used in determining employee bonuses.
Which group establishes financial accounting rules in the United States?
American Institute of Certified Public Accountants (AICPA)
International Accounting Standards Board (IASB)
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB) - Answer Financial Accounting Standards Board
(FASB)
Which report is one of the three primary financial statements?
Statement of cash flows
Statement of management accounting
Statement of stakeholder funds
Statement of the accounting cycle - Answer Statement of cash flows
, A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation?
Assets decrease by $5,000; revenues increase by $5,000.
Assets decrease by $5,000; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000. - Answer Assets decrease by
$5,000; expenses increase by $5,000.
What is a transaction?
A type of commonly used accounting software
Two parties exchanging something of value
An example of an online business document
A category of merchandiser or retailer - Answer Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; revenues increase by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; owners' equity increases by $80,000. - Answer Assets increase
by $80,000; liabilities increase by $80,000.
What is the impact of expenses on the accounting equation?
Expenses increase owners' equity.
Expenses decrease owners' equity.
Expenses decrease liabilities.
Expenses increase liabilities. - Answer Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable both examples of?
Liability
