WGU D074 Principles of Accounting Exam Questions & Answers | Latest 2023/24 | Updated & Verified | Guaranteed Success

Why might employees be interested in their company's financial accounting information? - Financial statement data are often used in determining employee bonuses. FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) - The group that establishes financial accounting rules in the USA What is the impact of expenses on the accounting equation? - Expenses decrease owners' equity. Which item is an expense item? 1. Loans Payable 2. AR 3. AP 4. Costs of goods sold - Cost of goods sold Which type of account is retained earnings? 1. Liability 2. Equity 3. Revenue 4. Asset - Equity For purposes of cash flow classification in the statement of cash flows, which item is an operating activity? - Paying employees How does a classified balance sheet provide useful information to a decision maker? - It distinguishes between current and long-term assets.What information does a balance sheet provide to a decision maker? - Summary of the financial position of a company at a particular date