WGU D074 Principles of Accounting Tests | Questions and Correct Solutions 2024

WGU D074 Principles of Accounting Tests | Questions and Correct Solutions 2024 One activity most businesses have in common is the acquisition of resources. Which example is an external transaction where a business is acquiring a resource? - Answer -Purchasing new equipment from a manufacturer Which account is an example of an asset? - Answer -Accounts receivable Which statement describes the role of ethics in accounting? - Answer -Accountants have a moral incentive to conduct themselves ethically. Which statement below describes why you should study accounting? - Answer -At some point in my career, I will need to use accounting information to make business decisions. How do revenues and expenses fit into the accounting equation? - Answer -Revenues minus expenses equals net income, which is part of owners' equity. What is the name of the account that shows the distribution of net income (earnings) to the owners of a business? - Answer -Dividends A transaction involving the payment of dividends to the owners reduces which part of the accounting equation? - Answer -Owners' equity Which event is an example of an internal transaction? - Answer -A company hires a new employee. Your company purchases new equipment for cash. Which accounts are increased and decreased as a result of this transaction? - Answer -Equipment increases and cash decreases. What is the one simple rule that always applies to the accounting equation? - Answer -The accounting equation must always remain in balance after recording a transaction. When is vertical financial statement analysis most valuable? - Answer -When comparing companies in similar industries Which section of the SEC's website contains Company Annual Report on