WGU D074 Principles of accounting | Correctly Answered

WGU D074 Principles of accounting | Correctly Answered What is the role and purpose of Accounting? - Answer -o Analysis: Analyze business events to determine if the information should be captured by the accounting system Allows an immediate analysis of events do you have more or less than before. Ex right then and there. . o Bookkeeping: Day-to-day keeping track of things. Allows to record in an organized form what happened. If you can't write down you don't know what happened. o Evaluation: Uses summary information to evaluate the financial health and performance of the business. It also allows for structuring data. Ex Should you pay people more or less. Is it more or less than what I budgeted. decision-making process - Answer -Step 1. Identify the issue. Step 2. Gather Information Step 3. Identify alternatives Step 4 Select the option that will most likely result in the desired objective. Accounting plays a vital role in the decision-making process. Which action is the first step in the decisionmaking process? - Answer -Identify the issue. The money that a company needs to buy its land, pay its employees, and buy its supplies is called capital. What are the potential sources of capital for a business? - Answer -Investors, creditors, and retained business earnings True or False: Accountants measure and communicate the results of business activities. - Answer -True Who uses accounting information and why? - Answer -o Lenders to help them predict the future ability of the borrow to repay the loan. o Investors to help them estimate how much cash they can expect to receive in the future if they invest in a business now.