D196 WGU | 60 QUESTIONS AND ANSWERS
What is the effect of a The company's accounting information will 3 multiple choice options
company's accounting increase in value.
department maintaining high
ethical standards
Why would employees be Financial statement data are often used in determining employee bonuses.
interested in their company's
financial accounting 3 multiple choice options
information?
What group establishes Financial Accounting Standards Board (FASB) 3 multiple choice options
financial accounting rules in
the United States?
Which report is one of the three Statement of cash flows 3 multiple choice options
primary financial statements?
A company paid $5,000 cash in Assets decrease by $5,000; expenses increase by 3 multiple choice options
advertising costs. $5,000.
How does this transaction affect the
paying
company's accounting equation?
What is a transaction? Two parties exchanging something of value. 3 multiple choice options
A company borrowed $80,000 cash Assets increase by $80,000; liabilities increase by 3 multiple choice options
from a bank. $80,000.
How does this transaction
affect the accounting equation
of the borrowing company?
What is the impact of expenses Expenses decrease owner's equity. 3 multiple choice options
on the accounting equation?
What type of account are Liability 3 multiple choice options
accounts payable and notes
payable both examples of?
, What is the purpose of the To turn information about transactions into 3 multiple choice options
financial accounting cycle? financial statements
According to the accounting Assets 3 multiple choice options
equation, the amount of liabilities
and equity must always be equal
to another amount.
What is that other amount?
What is an expense item? Cost of goods sold 3 multiple choice options
How is gross profit computed? Sales minus cost of goods sold 3 multiple choice options
What type of account is retained Equity 3 multiple choice options
earnings?
For purposes of cash flow Paying employees 3 multiple choice options
classification in the statement of
cash flows, which item is an
operating activity?
How does a classified It distinguishes between current and long-term 3 multiple choice options
balance sheet provide useful assets.
information to a decision
maker?
What information does a Summary of the financial position of a company at a particular date
balance sheet provide to a
3 multiple choice options
decision maker?
The amount owed by a company that purchased goods or services
What is an account payable? from a supplier on credit
3 multiple choice options
What is an example of a financial Increased hiring, training, and overtime costs 3 multiple choice options
cost that would result from poor
direct labor budgeting and
planning?
What does a manager have Costs 3 multiple choice options
control over in a cost center?
What should be considered Only controllable costs 3 multiple choice options
when developing a measure to
evaluate the performance of a
manager?
In some companies, the Uncontrollable costs should not be included in the performance
performance measures for evaluation measure of a profit center manager
profit center managers are
heavily influenced by cost
What is the effect of a The company's accounting information will 3 multiple choice options
company's accounting increase in value.
department maintaining high
ethical standards
Why would employees be Financial statement data are often used in determining employee bonuses.
interested in their company's
financial accounting 3 multiple choice options
information?
What group establishes Financial Accounting Standards Board (FASB) 3 multiple choice options
financial accounting rules in
the United States?
Which report is one of the three Statement of cash flows 3 multiple choice options
primary financial statements?
A company paid $5,000 cash in Assets decrease by $5,000; expenses increase by 3 multiple choice options
advertising costs. $5,000.
How does this transaction affect the
paying
company's accounting equation?
What is a transaction? Two parties exchanging something of value. 3 multiple choice options
A company borrowed $80,000 cash Assets increase by $80,000; liabilities increase by 3 multiple choice options
from a bank. $80,000.
How does this transaction
affect the accounting equation
of the borrowing company?
What is the impact of expenses Expenses decrease owner's equity. 3 multiple choice options
on the accounting equation?
What type of account are Liability 3 multiple choice options
accounts payable and notes
payable both examples of?
, What is the purpose of the To turn information about transactions into 3 multiple choice options
financial accounting cycle? financial statements
According to the accounting Assets 3 multiple choice options
equation, the amount of liabilities
and equity must always be equal
to another amount.
What is that other amount?
What is an expense item? Cost of goods sold 3 multiple choice options
How is gross profit computed? Sales minus cost of goods sold 3 multiple choice options
What type of account is retained Equity 3 multiple choice options
earnings?
For purposes of cash flow Paying employees 3 multiple choice options
classification in the statement of
cash flows, which item is an
operating activity?
How does a classified It distinguishes between current and long-term 3 multiple choice options
balance sheet provide useful assets.
information to a decision
maker?
What information does a Summary of the financial position of a company at a particular date
balance sheet provide to a
3 multiple choice options
decision maker?
The amount owed by a company that purchased goods or services
What is an account payable? from a supplier on credit
3 multiple choice options
What is an example of a financial Increased hiring, training, and overtime costs 3 multiple choice options
cost that would result from poor
direct labor budgeting and
planning?
What does a manager have Costs 3 multiple choice options
control over in a cost center?
What should be considered Only controllable costs 3 multiple choice options
when developing a measure to
evaluate the performance of a
manager?
In some companies, the Uncontrollable costs should not be included in the performance
performance measures for evaluation measure of a profit center manager
profit center managers are
heavily influenced by cost
