D196 Principles Practice Questions and answers real exam accurate & rated A+
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Course
D196 Principles Practice
Institution
D196 Principles Practice
2. Why might employees be interested in their company's financial accounting information? Financial statement data are often used in determining employee bonuses.
3. Which group establishes financial accounting rules in the United States? Financial Accounting Standards Board (FASB)
4. Which r...
Complete- D196
Principles Practice
Questions and answers
real exam accurate &
rated A+
, lOMoARcPSD|27916040
D196 Principles
1. What is the effect of a company's accounting department maintaining high
ethical standards? The company's accounting information will increase in
value.
2. Why might employees be interested in their company's financial
accounting information? Financial statement data are often used in
determining employee bonuses.
3. Which group establishes financial accounting rules in the
United States? Financial Accounting Standards Board
(FASB)
4. Which report is one of the three primary financial
statements? Statement of cash flows
5. A company paid $5,000 cash in advertising costs.
Assets decrease by $5,000; expenses increase by $5,000.
6. What is a transaction?
Two parties exchanging something of value
7. A company borrowed $80,000 cash from a bank.
Assets increase by $80,000; liabilities increase by $80,000.
8. What is the impact of expenses on the
accounting equation? Expenses decrease
owners' equity.
9. Which type of account are accounts payable and notes payable
both examples of? Liability
10. What is the purpose of the financial accounting cycle?
To turn information about transactions into financial statements
11. Which type of account are accounts payable and notes payable
both examples of? Liability
12. What is the purpose of the financial accounting cycle?
To turn information about transactions into financial statements
13. According to the accounting equation, the amount of liabilities and equity
must always be equal to another amount.
Assets
14. Which item is an
, lOMoARcPSD|27916040
expense item? Cost of
goods sold
15. How is gross profit
computed? Sales minus
cost of goods sold
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