WGU d196 questions and answers already graded A

WGU d196 questions and answers already graded A What is a transaction? - Answer ️️ -Two parties exchanging something of value What is the effect of a company's accounting department maintaining high ethical standards? - Answer ️️ -The company's accounting information will increase in value. Why might employees be interested in their company's financial accounting information? - Answer ️️ -Financial statement data are often used in determining employee bonuses. Which group establishes financial accounting rules in the United States? - Answer ️️ -financial Accounting Standards Board (FASB) Which report is one of the three primary financial statements? - Answer ️️ -Assets decrease by $5,000; expenses increase by $5,000 A company borrowed $80,000 cash from a bank. How does this transaction affect the accounting equation of the borrowing company? - Answer ️️ -Assets increase by $80,000; liabilities increase by $80,000. A company paid $5,000 cash in advertising costs. How does this transaction affect the paying company's accounting equation? - Answer ️️ - Assets decrease by $5,000; expenses increase by $5,000. What is the impact of expenses on the accounting equation? - Answer ️️ -Expenses decrease owners' equity. Which type of account are accounts payable and notes payable both examples of? - Answer ️️ -Liability What is the purpose of the financial accounting cycle? - Answer ️️ -To turn information about transactions into financial statements According to the accounting equation, the amount of liabilities and equity must always be equal to another amount. What is that other amount? - Answer ️️ -Assets Which item is an expense item? - Answer ️️ -Cost of goods sold How is gross profit computed? - Answer ️️ -Sales minus cost of goods sold Which type of account is retained earnings? - Answer ️️ -Equity