LATEST WGU D074 PRINCIPLES OF ACCOUNTING QUESTIONS WITH 100% CORRECT ANSWERS
9 views 0 purchase
Course
WGU D074 PRINCIPLES OF ACCOUNTING
Institution
WGU D074 PRINCIPLES OF ACCOUNTING
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 Financi...
LATEST WGU D074 PRINCIPLES OF
ACCOUNTING 2024-2025 QUESTIONS WITH
100% CORRECT ANSWERS
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.
What 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? Statement of cash flows,
statement of management accounting, statement of the accounting cycle, or statement
of stakeholder funds. - 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 decrease by
$5,000; expenses increase by $5,000.
What is a transaction? - CORRECT ANSWER Two parties exchange something of
value.
, LATEST WGU D074 PRINCIPLES OF
ACCOUNTING 2024-2025 QUESTIONS WITH
100% CORRECT ANSWERS
A company borrowed $80,000 cash from a bank. How does this transaction affect the
accounting equation of the borrowing company? - 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 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? - CORRECT ANSWER
Assets.
Which item is an expense item? Loans payable, accounts receivable, accounts payable,
costs of goods sold. - CORRECT ANSWER Costs 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.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Courseinstructor. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
