Page 1 of 48
D 115 / D115 PRE - ASSESSMENT, & FINAL EXAM
(LATEST UPDATES STUDY BUNDLE
PACKAGE WITH SOLUTIONS) ADVANCED
PATHOPHYSIOLOGY FOR THE ADVANCED PRACTICE
NURSE | QUESTIONS AND ANSWERS | GRADE A |
100% CORRECT (VERIFIED ANSWERS)
What is the effect of a company's accounting department
maintaining high ethical standards? .....ANSWER.....The company's
accounting information will increase in value.
Why might employees be interested in their company's financial
accounting information? .....ANSWER.....Financial statement data
are often used in determining employee bonuses.
Which group establishes financial accounting rules in the United
States? .....ANSWER.....Financial Accounting Standards Board
(FASB)
,Page 2 of 48
Which report is one of the three primary financial statements?
.....ANSWER.....Statement of cash flows
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's
accounting equation? .....ANSWER.....Assets decrease by $5,000;
expenses increase by $5,000.
What is a transaction? .....ANSWER.....Two parties exchanging
something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the
borrowing company? .....ANSWER.....Expenses decrease owners'
equity.
What is the impact of expenses on the accounting equation?
.....ANSWER.....Expenses decrease owners' equity.
,Page 3 of 48
Which type of account are accounts payable and notes payable
both examples of? .....ANSWER.....Liability
What is the purpose of the financial accounting cycle?
.....ANSWER.....To turn information about transactions into
financial statements
According to the accounting equation, the amount of liabilities
and equity must always be equal to another amount.
What is that other amount? .....ANSWER.....Assets
Which item is an expense item? .....ANSWER.....Cost of goods
sold
How is gross profit computed? .....ANSWER.....Sales minus cost of
goods sold
Which type of account is retained earnings?
.....ANSWER.....Equity
, Page 4 of 48
For purposes of cash flow classification in the statement of cash
flows, which item is an operating activity? .....ANSWER.....Paying
employees
How does a classified balance sheet provide useful information
to a decision maker? .....ANSWER.....It distinguishes between
current and long-term assets.
What information does a balance sheet provide to a decision
maker? .....ANSWER.....Summary of the financial position of a
company at a particular date
What is an account payable? .....ANSWER.....The amount owed
by a company that purchased goods or services from a supplier
on credit
What is an example of a financial cost that would result from
poor direct labor budgeting and planning?
.....ANSWER.....Increased hiring, training, and overtime costs
D 115 / D115 PRE - ASSESSMENT, & FINAL EXAM
(LATEST UPDATES STUDY BUNDLE
PACKAGE WITH SOLUTIONS) ADVANCED
PATHOPHYSIOLOGY FOR THE ADVANCED PRACTICE
NURSE | QUESTIONS AND ANSWERS | GRADE A |
100% CORRECT (VERIFIED ANSWERS)
What is the effect of a company's accounting department
maintaining high ethical standards? .....ANSWER.....The company's
accounting information will increase in value.
Why might employees be interested in their company's financial
accounting information? .....ANSWER.....Financial statement data
are often used in determining employee bonuses.
Which group establishes financial accounting rules in the United
States? .....ANSWER.....Financial Accounting Standards Board
(FASB)
,Page 2 of 48
Which report is one of the three primary financial statements?
.....ANSWER.....Statement of cash flows
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's
accounting equation? .....ANSWER.....Assets decrease by $5,000;
expenses increase by $5,000.
What is a transaction? .....ANSWER.....Two parties exchanging
something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the
borrowing company? .....ANSWER.....Expenses decrease owners'
equity.
What is the impact of expenses on the accounting equation?
.....ANSWER.....Expenses decrease owners' equity.
,Page 3 of 48
Which type of account are accounts payable and notes payable
both examples of? .....ANSWER.....Liability
What is the purpose of the financial accounting cycle?
.....ANSWER.....To turn information about transactions into
financial statements
According to the accounting equation, the amount of liabilities
and equity must always be equal to another amount.
What is that other amount? .....ANSWER.....Assets
Which item is an expense item? .....ANSWER.....Cost of goods
sold
How is gross profit computed? .....ANSWER.....Sales minus cost of
goods sold
Which type of account is retained earnings?
.....ANSWER.....Equity
, Page 4 of 48
For purposes of cash flow classification in the statement of cash
flows, which item is an operating activity? .....ANSWER.....Paying
employees
How does a classified balance sheet provide useful information
to a decision maker? .....ANSWER.....It distinguishes between
current and long-term assets.
What information does a balance sheet provide to a decision
maker? .....ANSWER.....Summary of the financial position of a
company at a particular date
What is an account payable? .....ANSWER.....The amount owed
by a company that purchased goods or services from a supplier
on credit
What is an example of a financial cost that would result from
poor direct labor budgeting and planning?
.....ANSWER.....Increased hiring, training, and overtime costs
