WGU D196 EXAM QUESTIONS WITH ALL ANSWERS
CORRECT
What happens if the accounting section of a business upholds strong ethical
standards? ANSWER The value of the company's accounting data will rise.
Why might workers be curious about the financial accounting data of their
organization? ANSWER Data from financial statements is frequently utilized
to calculate employee bonuses.
Which organization creates US financial accounting regulations? ANSWER
Board of Financial Accounting Standards
Out of the three main financial accounts, which report is it? ANSWER Cash
flow statement
A business spent $5,000 in cash on advertising. What impact does this
transaction have on the accounting equation of the paying company? ANSWER
Expenses rise by $5,000 while assets fall by $5,000.
A transaction: what is it? ANSWER A valuable exchange between two parties.
A bank loaned $80,000 to a business. What impact does this transaction have on
the borrowing company's accounting equation? ANSWER Liabilities rise by
$80,000 while assets rise by $80,000.
How do expenses affect the accounting equation? ANSWER Owners' equity is
reduced by expenses.
Which account type are notes payable and accounts payable instances of?
ANSWER Obligation
What does the financial accounting cycle aim to achieve? ANSWER to create
financial statements using transaction data.
, Liabilities and equity must always equal one another in accordance with the
accounting equation. What is the other sum? ANSWER Resources
What is considered a cost item? ANSWER Price of the products sold
How does one calculate gross profit? Sales less the cost of items sold is the
answer.
ANSWER Equity What kind of account is retained earnings?
Which item in the statement of cash flows is considered an operating activity
for the purposes of cash flow classification? ANSWER Paying workers
How can a decision-maker benefit from the information shown in a classified
balance sheet? ANSWER It made a distinction between long-term and current
assets.
What data does a decision-maker receive from a balance sheet? ANSWER An
overview of a company's financial situation as of a specific date.
Account payable: what is it? ANSWER The amount owed by a company that
purchased goods or services from a supplier in 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.
What does a manager have control over in a cost center? - ANSWER Costs
What should be considered when developing a measure to evaluate the
performance of a manager? ANSWER Only controllable cost's
In some companies, the performance measures for profit center managers are
heavily influenced by cost allocations downward from organizational units
(such as company headquarters). Why is this a mistake? ANSWER
Uncontrollable costs should not be included in the performance evaluation
measure of a profit center manager.
CORRECT
What happens if the accounting section of a business upholds strong ethical
standards? ANSWER The value of the company's accounting data will rise.
Why might workers be curious about the financial accounting data of their
organization? ANSWER Data from financial statements is frequently utilized
to calculate employee bonuses.
Which organization creates US financial accounting regulations? ANSWER
Board of Financial Accounting Standards
Out of the three main financial accounts, which report is it? ANSWER Cash
flow statement
A business spent $5,000 in cash on advertising. What impact does this
transaction have on the accounting equation of the paying company? ANSWER
Expenses rise by $5,000 while assets fall by $5,000.
A transaction: what is it? ANSWER A valuable exchange between two parties.
A bank loaned $80,000 to a business. What impact does this transaction have on
the borrowing company's accounting equation? ANSWER Liabilities rise by
$80,000 while assets rise by $80,000.
How do expenses affect the accounting equation? ANSWER Owners' equity is
reduced by expenses.
Which account type are notes payable and accounts payable instances of?
ANSWER Obligation
What does the financial accounting cycle aim to achieve? ANSWER to create
financial statements using transaction data.
, Liabilities and equity must always equal one another in accordance with the
accounting equation. What is the other sum? ANSWER Resources
What is considered a cost item? ANSWER Price of the products sold
How does one calculate gross profit? Sales less the cost of items sold is the
answer.
ANSWER Equity What kind of account is retained earnings?
Which item in the statement of cash flows is considered an operating activity
for the purposes of cash flow classification? ANSWER Paying workers
How can a decision-maker benefit from the information shown in a classified
balance sheet? ANSWER It made a distinction between long-term and current
assets.
What data does a decision-maker receive from a balance sheet? ANSWER An
overview of a company's financial situation as of a specific date.
Account payable: what is it? ANSWER The amount owed by a company that
purchased goods or services from a supplier in 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.
What does a manager have control over in a cost center? - ANSWER Costs
What should be considered when developing a measure to evaluate the
performance of a manager? ANSWER Only controllable cost's
In some companies, the performance measures for profit center managers are
heavily influenced by cost allocations downward from organizational units
(such as company headquarters). Why is this a mistake? ANSWER
Uncontrollable costs should not be included in the performance evaluation
measure of a profit center manager.
