D196 WGU - WGU PA Questions and
answers with complete solution
What is the effect of a company's accounting department maintaining high ethical
standards?
The company can hire fewer accountants to do the same amount of work.
The company's accounting information will decrease in value.
The company can report more favorable results in its financial statements.
The company's accounting information will increase in value. - 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 used to record long term liabilities.
Financial statement data provide item-by-item product cost information.
Financial statement data provide detailed internal budget information.
Financial statement data are often used in determining employee bonuses. -
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)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
Internal Revenue Service (IRS) - ANSWER-Financial Accounting Standards
Board (FASB)
Which report is one of the three primary financial statements?
Statement of the accounting cycle
Statement of management accounting
Statement of cash flows
Statement of stakeholder funds - 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; expenses increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
Assets decrease by $5,000; liabilities 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
A category of merchandiser or retailer
Two parties exchanging something of value
An example of an online business document - 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; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; revenues increase 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 liabilities.
Expenses decrease owners' equity.
Expenses increase liabilities. - ANSWER-Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable both examples
of?
Liability
Asset
Expense
Equity - ANSWER-Liability
answers with complete solution
What is the effect of a company's accounting department maintaining high ethical
standards?
The company can hire fewer accountants to do the same amount of work.
The company's accounting information will decrease in value.
The company can report more favorable results in its financial statements.
The company's accounting information will increase in value. - 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 used to record long term liabilities.
Financial statement data provide item-by-item product cost information.
Financial statement data provide detailed internal budget information.
Financial statement data are often used in determining employee bonuses. -
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)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
Internal Revenue Service (IRS) - ANSWER-Financial Accounting Standards
Board (FASB)
Which report is one of the three primary financial statements?
Statement of the accounting cycle
Statement of management accounting
Statement of cash flows
Statement of stakeholder funds - 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; expenses increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
Assets decrease by $5,000; liabilities 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
A category of merchandiser or retailer
Two parties exchanging something of value
An example of an online business document - 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; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; revenues increase 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 liabilities.
Expenses decrease owners' equity.
Expenses increase liabilities. - ANSWER-Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable both examples
of?
Liability
Asset
Expense
Equity - ANSWER-Liability
