WGU D196 Exam Questions and Verified Answers
ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
Effect of high ethical standards The company's accounting information will
increase in value.
Employee interest in financial Financial statement data are often used in
accounting determining employee bonuses.
Group establishing financial Financial Accounting Standards Board (FASB)
accounting rules in the US
One of the three primary financial Statement of cash flows
statements
, Effect of $5,000 advertising costs on Assets decrease by $5,000; expenses increase by
accounting equation $5,000.
Definition of a transaction Two parties exchanging something of value.
Effect of $80,000 cash borrowed Assets increase by $80,000; liabilities increase by
from a bank $80,000.
Impact of expenses on accounting Expenses decrease owners' equity.
equation
Type of account for accounts Liability.
payable and notes payable
Purpose of the financial accounting To turn information about transactions into financial
cycle statements.
Amount that liabilities and equity Assets.
must equal
Example of an expense item Cost of goods sold.
Total revenues minus total expenses Net income
ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
Effect of high ethical standards The company's accounting information will
increase in value.
Employee interest in financial Financial statement data are often used in
accounting determining employee bonuses.
Group establishing financial Financial Accounting Standards Board (FASB)
accounting rules in the US
One of the three primary financial Statement of cash flows
statements
, Effect of $5,000 advertising costs on Assets decrease by $5,000; expenses increase by
accounting equation $5,000.
Definition of a transaction Two parties exchanging something of value.
Effect of $80,000 cash borrowed Assets increase by $80,000; liabilities increase by
from a bank $80,000.
Impact of expenses on accounting Expenses decrease owners' equity.
equation
Type of account for accounts Liability.
payable and notes payable
Purpose of the financial accounting To turn information about transactions into financial
cycle statements.
Amount that liabilities and equity Assets.
must equal
Example of an expense item Cost of goods sold.
Total revenues minus total expenses Net income
