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...
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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.
Which group establishes financial accounting rules in the United States? correct answers
Financial accounting standards board
Which report is one of the three primary financial statements? 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 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? 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? correct answers Cost 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? correct answers Paying employees
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