WGU D074 Principles of Accounting Exam Questions & Answers/ (Top 2024/2025 EXAM REVIEW PAPERS / GRADED A+/ 100% Accurate)

WGU D074 Principles of Accounting Exam Questions & Answers 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 What is an example of a financial cost that would result from poor direct labor budgeting and planning? -Increased hiring, training, and overtime costs What does a manager have control over in a cost center? -Costs What is the correct sequence of budgets in a manufacturing business? -Sales, production, direct materials Which type of business organization has a major focus on direct materials, direct labor, and overhead? - Manufacturing What are the three primary functions that company managers use managerial accounting information for? -Planning, controlling, and evaluating What is the proper accounting for a product cost? -Record as an inventory cost until the item is sold How could a period cost be reported in an income statement? -As an administrative expense How are the wages of cashiers classified in a merchandising company? -Selling expense What is the sequence of the flow of costs through a manufacturing operation? -Raw materials, work-in-process, finished goods, cost of goods sold What is the CVP equation? -Sales - variable costs - fixed costs = profit Which cost category is not formally tracked in a company's accounting system? -Opportunity costs A company reports these data: Total sales revenue = $250,000 Number of units sold = 50,000 units Variable costs = $100,000 If the company is operating at its break-even point, what is the company's total contribution margin? - $150,000 A company reports these data: Price per unit = $25 Variable costs per unit = $15 Fixed costs = $15,000 Given these data, what is the variable cost ratio? -60% Why is the concept of relevant range important to a manager? -Outside the relevant range, the variable cost per unit can change. Which statement correctly describes applied