WGU C713 Business Law Pre Assessment Actual Exam All Questions with 100% Correct
Answers/ C713 Pre Assessment Test 2025 Prep
What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane - (ANSWER)Cost of aluminum in making an airplane
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 can report more favorable results in its financial statements.
The company's accounting information will increase in value.
The company's accounting information will decrease 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 are often used in determining employee bonuses.
Financial statement data provide item-by-item product cost information.
Financial statement data provide detailed internal budget 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)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants (AICPA) - (ANSWER)Financial Accounting Standards
Board (FASB)
,WGU C713 Business Law Pre Assessment Actual Exam All Questions with 100% Correct
Answers/ C713 Pre Assessment Test 2025 Prep
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
Statement of cash flows - (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; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues 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
A type of commonly used accounting software
A category of merchandiser or retailer
An example of an online business document - (ANSWER)Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; revenues increase by $80,000. - (ANSWER)Assets increase by $80,000;
liabilities increase by $80,000.
, WGU C713 Business Law Pre Assessment Actual Exam All Questions with 100% Correct
Answers/ C713 Pre Assessment Test 2025 Prep
What is the impact of expenses on the accounting equation?
Expenses decrease liabilities.
Expenses increase liabilities.
Expenses decrease owners' equity.
Expenses increase owners' equity. - (ANSWER)Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable both examples of?
Liability
Expense
Asset
Equity - (ANSWER)Liability
What is the purpose of the financial accounting cycle?
To turn information about transactions into financial statements
To gather information related to the expenses and income generated by a company
To produce and analyze a company's monthly bank statement
To collect confidential information for management to use as a competitive tool - (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?
The sum of expenses and dividends
Cash
Answers/ C713 Pre Assessment Test 2025 Prep
What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane - (ANSWER)Cost of aluminum in making an airplane
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 can report more favorable results in its financial statements.
The company's accounting information will increase in value.
The company's accounting information will decrease 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 are often used in determining employee bonuses.
Financial statement data provide item-by-item product cost information.
Financial statement data provide detailed internal budget 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)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants (AICPA) - (ANSWER)Financial Accounting Standards
Board (FASB)
,WGU C713 Business Law Pre Assessment Actual Exam All Questions with 100% Correct
Answers/ C713 Pre Assessment Test 2025 Prep
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
Statement of cash flows - (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; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues 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
A type of commonly used accounting software
A category of merchandiser or retailer
An example of an online business document - (ANSWER)Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; revenues increase by $80,000. - (ANSWER)Assets increase by $80,000;
liabilities increase by $80,000.
, WGU C713 Business Law Pre Assessment Actual Exam All Questions with 100% Correct
Answers/ C713 Pre Assessment Test 2025 Prep
What is the impact of expenses on the accounting equation?
Expenses decrease liabilities.
Expenses increase liabilities.
Expenses decrease owners' equity.
Expenses increase owners' equity. - (ANSWER)Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable both examples of?
Liability
Expense
Asset
Equity - (ANSWER)Liability
What is the purpose of the financial accounting cycle?
To turn information about transactions into financial statements
To gather information related to the expenses and income generated by a company
To produce and analyze a company's monthly bank statement
To collect confidential information for management to use as a competitive tool - (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?
The sum of expenses and dividends
Cash
