WGU D196 Pre-Assessment Complete Answers 100% Correct (Latest 2024)

WGU D196 Pre-Assessment Complete Answers 100% Correct (Latest 2024) 1. What is the effect of a company's accounting department maintaining highethical standards? -The company can report more favorable results in its financial statements. -The company's accounting information will decrease in value. -The company can hire fewer accountants to do the same amount of work. -The company's accounting information will increase in value. Answer: The company'saccounting information will increase in value. 2. Why might employees be interested in their company'sfinancial accountinginformation? -Financial statement data are used to record long term liabilities. -Financial statement data provide detailed internal budget information. -Financial statement data are often used in determining employee bonuses. -Financial statement data provide item-by-item product cost information. Answer: Financial statement data are often used in determining employee bonuses. 3. Which group establishes financial accounting rules in the United States? -Internal Revenue Service (IRS) -American Institute of Certified Public Accountants (AICPA) -Financial Accounting Standards Board (FASB) -International Accounting Standards Board (IASB) Answer: Financial Accounting Standards Board (FASB) 4. Which report is one of the three primary financial statements? -Statement of stakeholder funds -Statement of cash flows -Statement of the accounting cycle -Statement of management accounting Answer: Statement of cash flows 5. 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 decrease by $5,000; liabilities increase by $5,000. -Assets decrease by $5,000; revenues increase by $5,000. -Assets increase by $5,000; expenses increase by $5,000. Answer: Assets decrease by $5,000; expenses increase by $5,000.