WGU D196 Pre-Assessment ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
What is the effect of a company's accounting department The company's accounting information will increase in value.
maintaining high ethical standards?
Why might employees be interested in their company's Financial statement data are often used in determining employee bonuses.
financial accounting information?
Which group establishes financial accounting rules in the Financial Accounting Standards Board (FASB)
United States?
Which report is one of the three primary financial Statement of cash flows
statements?
A company paid $5,000 cash in advertising costs. Assets decrease by $5,000; expenses increase by $5,000.
How does this transaction affect the paying company's
accounting equation?
What is a transaction? Two parties exchanging something of value
, A company borrowed $80,000 cash from a bank. Expenses decrease owners' equity.
How does this transaction affect the accounting equation
of the borrowing company?
What is the impact of expenses on the accounting Expenses decrease owners' equity.
equation?
Which type of account are accounts payable and notes Liability
payable both examples of?
What is the purpose of the financial accounting cycle? To turn information about transactions into financial statements
According to the accounting equation, the amount of Assets
liabilities and equity must always be equal to another
amount.
What is that other amount?
Which item is an expense item? Cost of goods sold
How is gross profit computed? Sales minus cost of goods sold
Which type of account is retained earnings? Equity
For purposes of cash flow classification in the statement Paying employees
of cash flows, which item is an operating activity?
How does a classified balance sheet provide useful It distinguishes between current and long-term assets.
information to a decision maker?
What information does a balance sheet provide to a Summary of the financial position of a company at a particular date
decision maker?
What is an account payable? 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 Increased hiring, training, and overtime costs
from poor direct labor budgeting and planning?
What does a manager have control over in a cost center? Costs
ANSWERS
What is the effect of a company's accounting department The company's accounting information will increase in value.
maintaining high ethical standards?
Why might employees be interested in their company's Financial statement data are often used in determining employee bonuses.
financial accounting information?
Which group establishes financial accounting rules in the Financial Accounting Standards Board (FASB)
United States?
Which report is one of the three primary financial Statement of cash flows
statements?
A company paid $5,000 cash in advertising costs. Assets decrease by $5,000; expenses increase by $5,000.
How does this transaction affect the paying company's
accounting equation?
What is a transaction? Two parties exchanging something of value
, A company borrowed $80,000 cash from a bank. Expenses decrease owners' equity.
How does this transaction affect the accounting equation
of the borrowing company?
What is the impact of expenses on the accounting Expenses decrease owners' equity.
equation?
Which type of account are accounts payable and notes Liability
payable both examples of?
What is the purpose of the financial accounting cycle? To turn information about transactions into financial statements
According to the accounting equation, the amount of Assets
liabilities and equity must always be equal to another
amount.
What is that other amount?
Which item is an expense item? Cost of goods sold
How is gross profit computed? Sales minus cost of goods sold
Which type of account is retained earnings? Equity
For purposes of cash flow classification in the statement Paying employees
of cash flows, which item is an operating activity?
How does a classified balance sheet provide useful It distinguishes between current and long-term assets.
information to a decision maker?
What information does a balance sheet provide to a Summary of the financial position of a company at a particular date
decision maker?
What is an account payable? 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 Increased hiring, training, and overtime costs
from poor direct labor budgeting and planning?
What does a manager have control over in a cost center? Costs
