WGU D196 OBJECTIVE ASSESSMENT
EXAM WITH 100% CORRECT AND
VERIFIED ANSWERS
WESTERN GOVERNORS UNIVERSITY
WGU D196
, What is the correct sequence of budgets in a manufacturing business? - Correct
Answer-Sales, production, direct materials
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.
Which 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? - 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 increase by $5,000; expenses increase by $5,000.
A company borrowed $80,000 cash from a bank. - 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 gather
information related to the expenses and income generated by a company
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? - Correct Answer-Cost 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
For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity? - Correct Answer-Paying Employees
EXAM WITH 100% CORRECT AND
VERIFIED ANSWERS
WESTERN GOVERNORS UNIVERSITY
WGU D196
, What is the correct sequence of budgets in a manufacturing business? - Correct
Answer-Sales, production, direct materials
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.
Which 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? - 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 increase by $5,000; expenses increase by $5,000.
A company borrowed $80,000 cash from a bank. - 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 gather
information related to the expenses and income generated by a company
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? - Correct Answer-Cost 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
For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity? - Correct Answer-Paying Employees
