WGU D196 Practice Exam | Principles of Financial and Managerial Accounting Study Guide | 2024/2025 Updated
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Course
WGU D196
Institution
WGU D196
WGU D196 Practice Exam | Principles of Financial and Managerial Accounting Study Guide | 2024/2025 Updated
WGU D196 Practice Exam | Principles of Financial and Managerial Accounting Study Guide | 2024/2025 Updated
WGU D196 Practice Exam | Principles of Financial and Managerial Accounting Stud...
WGU D196 Practice Exam | Principles of
Financial and Managerial
Accounting Study Guide | 2024/2025
Updated
The four steps in the accounting cycle are as follows:
- Correct Answer - Analyze transactions.
Record the effects of transactions.
Summarize the effects of transactions.
Prepare reports.
Assets= - Correct Answer - Liabilities + Equity
A company sells a product to a customer on account. Which part(s) of
the accounting equation does this particular transaction change?
- Correct Answer - Both assets and owners' equity
Which event represents a transaction recorded as part of the financial
accounting cycle?
- Correct Answer - The sale of a product for cash or on account
What is an arm's-length transaction?
- Correct Answer - An exchange between two independent parties
In the context of the financial accounting cycle, what is the definition of
an account?
, - Correct Answer - A specific accounting record that provides an efficient
way to categorize similar types of transactions
What is owners' equity?
- Correct Answer - The remaining claim to the assets of a business after
liabilities have been deducted
Three primary financial statements
- Correct Answer - ~ Balance Sheet
~ Income Statement
~ Statement of Cash Flows
Balance Sheet
- Correct Answer - (or statement of financial position) reports the
resources of a company (assets), the company's obligations (liabilities),
and the difference between what is owned (assets) and what is owed
(liabilities), called owners' equity.
Income Statement
- Correct Answer - reports the amount of net income earned by a
company during a period, with annual and quarterly income statements
being the most common. (Net income is discussed later on.) The income
statement represents the accountant's best effort at measuring the
economic performance of a company.
Statement of cash flows
- Correct Answer - reports the amount of cash collected and paid out by
a company in operating, investing, and financing activities.
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