LATEST WGU D074 PRINCIPLES OF
ACCOUNTING 2024-2025 QUESTIONS WITH
100% CORRECT ANSWERS
What is the effect of a company's accounting department maintaining high ethical
standards? - CORRECT ANSWER The company's accounting information will
increase in value.
Why might employees be interested in their company's financial accounting information?
- CORRECT ANSWER Financial statement data are often used in determining
employee bonuses.
What group establishes financial accounting rules in the United States? - CORRECT
ANSWER Financial Accounting Standards Board (FASB).
Which report is one of the three primary financial statements? Statement of cash flows,
statement of management accounting, statement of the accounting cycle, or statement
of stakeholder funds. - CORRECT 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? - CORRECT ANSWER Assets decrease by
$5,000; expenses increase by $5,000.
What is a transaction? - CORRECT ANSWER Two parties exchange something of
value.
, LATEST WGU D074 PRINCIPLES OF
ACCOUNTING 2024-2025 QUESTIONS WITH
100% CORRECT ANSWERS
A company borrowed $80,000 cash from a bank. How does this transaction affect the
accounting equation of the borrowing company? - CORRECT ANSWER Assets
increase by $80,000; liabilities increase by $80,000.
What is the impact of expenses on the accounting equation? - CORRECT ANSWER
Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable both examples of? -
CORRECT ANSWER Liability.
What is the purpose of the financial accounting cycle? - CORRECT 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? - CORRECT ANSWER
Assets.
Which item is an expense item? Loans payable, accounts receivable, accounts payable,
costs of goods sold. - CORRECT ANSWER Costs of goods sold.
How is gross profit computed? - CORRECT ANSWER Sales minus cost of goods sold.
Which type of account is retained earnings? - CORRECT ANSWER Equity.
ACCOUNTING 2024-2025 QUESTIONS WITH
100% CORRECT ANSWERS
What is the effect of a company's accounting department maintaining high ethical
standards? - CORRECT ANSWER The company's accounting information will
increase in value.
Why might employees be interested in their company's financial accounting information?
- CORRECT ANSWER Financial statement data are often used in determining
employee bonuses.
What group establishes financial accounting rules in the United States? - CORRECT
ANSWER Financial Accounting Standards Board (FASB).
Which report is one of the three primary financial statements? Statement of cash flows,
statement of management accounting, statement of the accounting cycle, or statement
of stakeholder funds. - CORRECT 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? - CORRECT ANSWER Assets decrease by
$5,000; expenses increase by $5,000.
What is a transaction? - CORRECT ANSWER Two parties exchange something of
value.
, LATEST WGU D074 PRINCIPLES OF
ACCOUNTING 2024-2025 QUESTIONS WITH
100% CORRECT ANSWERS
A company borrowed $80,000 cash from a bank. How does this transaction affect the
accounting equation of the borrowing company? - CORRECT ANSWER Assets
increase by $80,000; liabilities increase by $80,000.
What is the impact of expenses on the accounting equation? - CORRECT ANSWER
Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable both examples of? -
CORRECT ANSWER Liability.
What is the purpose of the financial accounting cycle? - CORRECT 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? - CORRECT ANSWER
Assets.
Which item is an expense item? Loans payable, accounts receivable, accounts payable,
costs of goods sold. - CORRECT ANSWER Costs of goods sold.
How is gross profit computed? - CORRECT ANSWER Sales minus cost of goods sold.
Which type of account is retained earnings? - CORRECT ANSWER Equity.
