D074 Principles of Accounting WGU || with 100% Correct Answers.
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D074 Principles of Accounting WGU
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D074 Principles Of Accounting WGU
What is the effect of a company's accounting department maintaining high ethical standards? correct answers The company's accounting information will increase in value.
Why might employees be interested in their company's financial accounting information? correct answers Financial statement data...
D074 Principles of Accounting WGU || with 100% Correct
Answers.
What is the effect of a company's accounting department maintaining high ethical standards?
correct answers The company's accounting information will increase in value.
Why might employees be interested in their company's financial accounting information? correct
answers Financial statement data are often used in determining employee bonuses.
What group establishes financial accounting rules in the United States? correct answers 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 answers 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 answers Assets decrease by $5,000; expenses increase
by $5,000.
What is a transaction? correct answers Two parties exchange something of value.
A company borrowed $80,000 cash from a bank. How does this transaction affect the accounting
equation of the borrowing company? correct answers Assets increase by $80,000; liabilities
increase by $80,000.
What is the impact of expenses on the accounting equation? correct answers Expenses decrease
owners' equity.
Which type of account are accounts payable and notes payable both examples of? correct
answers Liability.
What is the purpose of the financial accounting cycle? correct answers 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 answers Assets.
Which item is an expense item? Loans payable, accounts receivable, accounts payable, costs of
goods sold. correct answers Costs of goods sold.
How is gross profit computed? correct answers Sales minus cost of goods sold.
Which type of account is retained earnings? correct answers Equity.
, For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity? Buying equipment, paying employees, selling bonds, distributing dividends.
correct answers Paying employees.
How does a classified balance sheet provide useful information to a decision maker? correct
answers It distinguishes between current and long-term assets.
What information does a balance sheet provide to a decision maker? correct answers Summary
of the financial position of a company at a particular date.
What is an account payable? correct answers The amount owed by a company that purchased
goods or services from a supplier on credit.
What is an example of a financial cost that would result from poor direct labor budgeting and
planning? correct answers Increased hiring, training, and overtime costs.
What does a manager have control over in a cost center? correct answers Costs.
What should be considered when developing a measure to evaluate the performance of a
manager? correct answers Only controllable costs.
In some companies, the performance measures for profit center managers are heavily influenced
by cost allocations downward from the organizational units (such as company headquarters).
Why is this a mistake? correct answers Uncontrollable costs should not be included in the
performance evaluation measure if a profit center manager.
Which budget should include the expected cost of supplies used by the office staff of the
corporate headquarters? correct answers Administrative expense budget.
Which items are uncontrollable, external variables that make it difficult to forecast the level of
sales? correct answers Customer tastes and economic conditions.
What is the correct sequence of budgets in a manufacturing business? correct answers Sales,
production, direct materials.
Which type of business organization has a major focus on direct materials, direct labor, and
overhead? correct answers Manufacturing.
What are the 3 primary functions that company managers use managerial accounting information
for? correct answers Planning, controlling, and evaluating.
What is the proper accounting for a product cost? correct answers Record as an inventory cost
until the item is sold.
How could a period cost be reported in an income statement? correct answers As an
administrative expense. (outside of the company!)
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