WGU D199 ACTUAL TEST PAPER PREMIUM
SOLVED QUESTIONS FULL SOLUTION
ALREADY PASSED
◉ Why might employees be interested in their company's financial
accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data provide item-by-item product cost
information.
Financial statement data provide detailed internal budget information.
Financial statement data are often used in determining employee
bonuses. Answer: Financial statement data are often used in
determining employee bonuses.
◉ Which group establishes financial accounting rules in the United
States?
American Institute of Certified Public Accountants (AICPA)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
Internal Revenue Service (IRS) Answer: Financial Accounting
Standards Board (FASB)
◉ Which report is one of the three primary financial statements?
Statement of the accounting cycle
,Statement of management accounting
Statement of cash flows
Statement of stakeholder funds 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?
Assets decrease by $5,000; expenses increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
Assets decrease by $5,000; liabilities increase by $5,000. Answer:
Assets decrease by $5,000; expenses increase by $5,000.
◉ What is a transaction?
A type of commonly used accounting software
A category of merchandiser or retailer
Two parties exchanging something of value
An example of an online business document 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?
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
, Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; revenues increase by $80,000. Answer:
Assets increase by $80,000; liabilities increase by $80,000.
◉ What is the impact of expenses on the accounting equation?
Expenses increase owners' equity.
Expenses decrease liabilities.
Expenses decrease owners' equity.
Expenses increase liabilities. Answer: Expenses decrease owners'
equity.
◉ Which type of account are accounts payable and notes payable both
examples of?
Liability
Asset
Expense
Equity Answer: Liability
◉ What is the purpose of the financial accounting cycle?
To collect confidential information for management to use as a
competitive tool
To turn information about transactions into financial statements
To gather information related to the expenses and income generated
by a company
SOLVED QUESTIONS FULL SOLUTION
ALREADY PASSED
◉ Why might employees be interested in their company's financial
accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data provide item-by-item product cost
information.
Financial statement data provide detailed internal budget information.
Financial statement data are often used in determining employee
bonuses. Answer: Financial statement data are often used in
determining employee bonuses.
◉ Which group establishes financial accounting rules in the United
States?
American Institute of Certified Public Accountants (AICPA)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
Internal Revenue Service (IRS) Answer: Financial Accounting
Standards Board (FASB)
◉ Which report is one of the three primary financial statements?
Statement of the accounting cycle
,Statement of management accounting
Statement of cash flows
Statement of stakeholder funds 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?
Assets decrease by $5,000; expenses increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
Assets decrease by $5,000; liabilities increase by $5,000. Answer:
Assets decrease by $5,000; expenses increase by $5,000.
◉ What is a transaction?
A type of commonly used accounting software
A category of merchandiser or retailer
Two parties exchanging something of value
An example of an online business document 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?
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
, Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; revenues increase by $80,000. Answer:
Assets increase by $80,000; liabilities increase by $80,000.
◉ What is the impact of expenses on the accounting equation?
Expenses increase owners' equity.
Expenses decrease liabilities.
Expenses decrease owners' equity.
Expenses increase liabilities. Answer: Expenses decrease owners'
equity.
◉ Which type of account are accounts payable and notes payable both
examples of?
Liability
Asset
Expense
Equity Answer: Liability
◉ What is the purpose of the financial accounting cycle?
To collect confidential information for management to use as a
competitive tool
To turn information about transactions into financial statements
To gather information related to the expenses and income generated
by a company
