Fundamentals of Accounting, 2024 Exam Guide as Foreseen.

Fundamentals of Accounting, 2024 Exam Guide as Foreseen. What is the effect of a company's accounting department maintaining high ethical standards? - Indicate: The company's accounting information will increase in value. Why might employees be interested in their company's financial accounting information? - Indicate: Financial statement data are often used in determining employee bonuses. Which group establishes financial accounting rules in the United States? - Indicate: Financial Accounting Standards Board (FASB) Which report is one of the three primary financial statements? - Indicate: Statement of cash flows A company paid $5,000 cash in advertising costs. - Indicate: Assets decrease by $5,000; expenses increase by $5,000 What is a transaction? - Indicate: 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? - Indicate: Assets increase by $80,000; liabilities increase by $80,000 What is the impact of expenses on the accounting equation? - Indicate: Expenses decrease owners' equity Which type of account are accounts payable and notes payable both examples of? - Indicate: Liability