2025 NEWEST WGU D196 EXAM.
COMPREHENSIVE QUESTION BANK WITH
CORRECT VERIFIED ANSWERS. A+ GRADED.
What is the effect of a company's accounting
department maintaining high ethical standards?
The company can hire fewer accountants to do the
same amount of work.
The company's accounting information will decrease
in value.
The company can report more favorable results in its
financial statements.
The company's accounting information will increase
in value. - ✔✔ ANS ✔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 item-by-item
product cost information.
Financial statement data provide detailed internal
budget information.
Financial statement data are often used in
determining employee bonuses. - ✔✔ ANS
✔Financial statement data are often used in
determining employee bonuses.
Which group establishes financial accounting rules in
the United States?
American Institute of Certified Public Accountants
(AICPA)
Financial Accounting Standards Board (FASB)
,International Accounting Standards Board (IASB)
Internal Revenue Service (IRS) - ✔✔ ANS
✔Financial Accounting Standards Board (FASB)
Which report is one of the three primary financial
statements?
Statement of the accounting cycle
Statement of management accounting
Statement of cash flows
Statement of stakeholder funds - ✔✔ ANS
✔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 increase by $5,000; expenses increase by
$5,000.
Assets decrease by $5,000; revenues increase by
$5,000.
Assets decrease by $5,000; liabilities increase by
$5,000. - ✔✔ ANS ✔Assets decrease by
$5,000; expenses increase by $5,000.
What is a transaction?
A type of commonly used accounting software
A category of merchandiser or retailer
Two parties exchanging something of value
An example of an online business document -
✔✔ ANS ✔Two parties exchanging something of
value
A company borrowed $80,000 cash from a bank.
COMPREHENSIVE QUESTION BANK WITH
CORRECT VERIFIED ANSWERS. A+ GRADED.
What is the effect of a company's accounting
department maintaining high ethical standards?
The company can hire fewer accountants to do the
same amount of work.
The company's accounting information will decrease
in value.
The company can report more favorable results in its
financial statements.
The company's accounting information will increase
in value. - ✔✔ ANS ✔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 item-by-item
product cost information.
Financial statement data provide detailed internal
budget information.
Financial statement data are often used in
determining employee bonuses. - ✔✔ ANS
✔Financial statement data are often used in
determining employee bonuses.
Which group establishes financial accounting rules in
the United States?
American Institute of Certified Public Accountants
(AICPA)
Financial Accounting Standards Board (FASB)
,International Accounting Standards Board (IASB)
Internal Revenue Service (IRS) - ✔✔ ANS
✔Financial Accounting Standards Board (FASB)
Which report is one of the three primary financial
statements?
Statement of the accounting cycle
Statement of management accounting
Statement of cash flows
Statement of stakeholder funds - ✔✔ ANS
✔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 increase by $5,000; expenses increase by
$5,000.
Assets decrease by $5,000; revenues increase by
$5,000.
Assets decrease by $5,000; liabilities increase by
$5,000. - ✔✔ ANS ✔Assets decrease by
$5,000; expenses increase by $5,000.
What is a transaction?
A type of commonly used accounting software
A category of merchandiser or retailer
Two parties exchanging something of value
An example of an online business document -
✔✔ ANS ✔Two parties exchanging something of
value
A company borrowed $80,000 cash from a bank.
