WGU D196 PRE ASSESSMENT EXAM WITH ACTUAL
QUESTIONS AND CORRRECT ANSWERS LATEST
UPDATE RATED A+
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 - CORRECT 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. -
CORRECT 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. - CORRECT 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) -
CORRECT 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
Statement of cash flows - 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?
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. -
CORRECT 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 - CORRECT 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. -
CORRECT ANSWER >>>>>Assets increase by $80,000; liabilities
increase by $80,000.
What is the impact of expenses on the accounting equation?
Expenses decrease liabilities.
Expenses increase liabilities.
Expenses decrease owners' equity.
Expenses increase owners' equity. - CORRECT ANSWER
>>>>>Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable
both examples of?
Liability
Expense
Asset
QUESTIONS AND CORRRECT ANSWERS LATEST
UPDATE RATED A+
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 - CORRECT 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. -
CORRECT 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. - CORRECT 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) -
CORRECT 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
Statement of cash flows - 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?
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. -
CORRECT 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 - CORRECT 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. -
CORRECT ANSWER >>>>>Assets increase by $80,000; liabilities
increase by $80,000.
What is the impact of expenses on the accounting equation?
Expenses decrease liabilities.
Expenses increase liabilities.
Expenses decrease owners' equity.
Expenses increase owners' equity. - CORRECT ANSWER
>>>>>Expenses decrease owners' equity.
Which type of account are accounts payable and notes payable
both examples of?
Liability
Expense
Asset
