1
WGU D196 Pre-Assessment Questions with Answers
(100% Correct Answers)
What is the effect of a company's accounting department maintaining
high ethical 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's accounting information will increase in value.
Why might employees be interested in their company's financial
accounting information?
-Financial statement data are used to record long term liabilities.
-Financial statement data provide detailed internal budget information.
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,2
-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.
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)
Which report is one of the three primary financial statements?
-Statement of stakeholder funds
-Statement of cash flows
-Statement of the accounting cycle
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, 3
-Statement of management accounting Answer: Statement of cash
flows
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.
What is a transaction?
-Two parties exchanging something of value
-An example of an online business document
-A type of commonly used accounting software
© 2025 All rights reserved
WGU D196 Pre-Assessment Questions with Answers
(100% Correct Answers)
What is the effect of a company's accounting department maintaining
high ethical 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's accounting information will increase in value.
Why might employees be interested in their company's financial
accounting information?
-Financial statement data are used to record long term liabilities.
-Financial statement data provide detailed internal budget information.
© 2025 All rights reserved
,2
-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.
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)
Which report is one of the three primary financial statements?
-Statement of stakeholder funds
-Statement of cash flows
-Statement of the accounting cycle
© 2025 All rights reserved
, 3
-Statement of management accounting Answer: Statement of cash
flows
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.
What is a transaction?
-Two parties exchanging something of value
-An example of an online business document
-A type of commonly used accounting software
© 2025 All rights reserved
