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

What is the effect of a company's accounting department maintaining high ethical standards? - 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. What group establishes financial accounting rules in the United States? - 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 the accounting cycle, or statement of stakeholder funds. - 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. What is a transaction? - Two parties exchange 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. What is the impact of expenses on the accounting equation? - Expenses decrease owners' equity. Which type of account are accounts payable and notes payable both examples of? - Liability. What is the purpose of the financial accounting cycle? - To turn information about transactions into financial statements.