WGU D196 PRINCIPLES OF FINANCIAL AND MANAGERIAL ACCOUNTING; MODULE 1 TEST QUESTIONS WITH ANSWERS

WGU D196 PRINCIPLES OF FINANCIAL AND
MANAGERIAL ACCOUNTING; MODULE 1 TEST
QUESTIONS WITH ANSWERS

Accounting is a very important part of decision making. Which of the following
shoul
d be done first in the steps involved in decision making?


A: Identify the Problem
B: Obtain Information
C: Identify the Options
D: Ensure a Good Decision
A: Identify the Problem


The cash needed by any business to buy its property, pay off its workers, as well
as buying equipment and supplies is known as capital. Who are the most
probable contributors that can provide capital to start a business?


A: Taxes, Investors, and Retained Business Profits


B: Investors, Creditors, and Retained Business Earnings


C: Employees, Investors, and Retained Business Earnings


D: Gross Business Earnings, Employees, and Taxes

, B: Investors, Creditors, and Retained Business Earnings




TRUE/FALSE:


Accountants measure and communicate the results of business activities.
True: Accountants measure and communicate, or report, the results of business
activities—in other words, accountants keep score. To measure these results
accurately, accountants follow a standard set of procedures referred to as the
accounting cycle.




Which type of accounting is primarily involved in producing reports for internal
users?


A: Managerial accounting
B: General-purpose accounting
C: Governmental accounting
D: Financial accounting
A: Managerial accounting


Managerial accounting produces reports for internal users, including budgets
and cost analyses.


Which of the following groups would use financial information to determine
whether a company is likely to repay a loan?