W GU D196 EXAM QUESTIONS
ANDCORRECT VERIFIED
ANSW ERS RATED A|
GRADE
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 com pany's accounting infor m ation w ill incr ease in
value.
The company's accounting information will decrease in value. -
ANSWERThe 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 statem ent data ar e often used in deter m ining
em ployee bon uses.
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 Standar ds B oar d (FASB )
International Accounting Standards Board (IASB)
, American Institute of Certified Public Accountants (AICPA) -
ANSWER-
Financial Accounting Standards Board (FASB)
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
Statem ent of cash fl ow s - 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 decr ease by $5,000; expenses incr ease by $5,000.
Assets decrease by $5,000; revenues increase by $5,000. -
ANSWERAssets decrease by $5,000; expenses increase by
$5,000.
What is a transaction?
Tw o par ties exchan ging som ething of valu e
ANDCORRECT VERIFIED
ANSW ERS RATED A|
GRADE
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 com pany's accounting infor m ation w ill incr ease in
value.
The company's accounting information will decrease in value. -
ANSWERThe 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 statem ent data ar e often used in deter m ining
em ployee bon uses.
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 Standar ds B oar d (FASB )
International Accounting Standards Board (IASB)
, American Institute of Certified Public Accountants (AICPA) -
ANSWER-
Financial Accounting Standards Board (FASB)
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
Statem ent of cash fl ow s - 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 decr ease by $5,000; expenses incr ease by $5,000.
Assets decrease by $5,000; revenues increase by $5,000. -
ANSWERAssets decrease by $5,000; expenses increase by
$5,000.
What is a transaction?
Tw o par ties exchan ging som ething of valu e
