D196 WGU

D196 WGU

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D196 O

22 terms Cal What is the effect of a company's accounting department maintaining high ethical standards?The company can hire fewer accountants to do the same amount of work.The company's accounting information will decrease in value.The company can report more favorable results in its financial statements.The company's accounting information will increase in value.The company's accounting information will increase in value.Why might employees be interested in their company's financial accounting information?Financial statement data are used to record long term liabilities.Financial statement data provide item-by-item product cost information.Financial statement data provide detailed internal budget information.Financial statement data are often used in determining employee bonuses.Financial statement data are often used in determining employee bonuses.Which group establishes financial accounting rules in the United States?American Institute of Certified Public Accountants

(AICPA)

Financial Accounting Standards Board (FASB) International Accounting Standards Board (IASB) Internal Revenue Service (IRS) Financial Accounting Standards Board (FASB)

Which report is one of the three primary financial statements?Statement of the accounting cycle Statement of management accounting Statement of cash flows Statement of stakeholder funds Statement of cash flows A company paid $5,000 cash in advertising costs.How does this transaction affect the paying company's accounting equation?Assets decrease by $5,000; expenses increase by $5,000.Assets increase by $5,000; expenses increase by $5,000.Assets decrease by $5,000; revenues increase by $5,000.Assets decrease by $5,000; liabilities increase by $5,000.Assets decrease by $5,000; expenses increase by $5,000.What is a transaction?A type of commonly used accounting software A category of merchandiser or retailer Two parties exchanging something of value An example of an online business document 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?Assets increase by $80,000; owners' equity increases by

$80,000.

Assets increase by $80,000; liabilities decrease by

$80,000.

Assets increase by $80,000; liabilities increase by

$80,000.

Assets increase by $80,000; revenues increase by

$80,000.

Assets increase by $80,000; liabilities increase by $80,000.What is the impact of expenses on the accounting equation?Expenses increase owners' equity.Expenses decrease liabilities.Expenses decrease owners' equity.Expenses increase liabilities.Expenses decrease owners' equity.Which type of account are accounts payable and notes payable both examples of?Liability Asset Expense Equity Liability

What is the purpose of the financial accounting cycle?To collect confidential information for management to use as a competitive tool To turn information about transactions into financial statements To gather information related to the expenses and income generated by a company To produce and analyze a company's monthly bank statement 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?Cash The sum of revenues and expenses Assets The sum of expenses and dividends Assets Which item is an expense item?Cost of goods sold Loans payable Accounts receivable Accounts payable Cost of goods sold How is gross profit computed?Total revenues minus total expenses Sales minus cost of goods sold Total assets minus total liabilities Accounts receivable minus accounts payable Sales minus cost of goods sold Which type of account is retained earnings?Asset Revenue Equity Liability Equity For purposes of cash flow classification in the statement of cash flows, which item is an operating activity?Distributing dividends Paying employees Buying equipment Selling bonds Paying employees How does a classified balance sheet provide useful information to a decision maker?It distinguishes between current and long-term assets.It provides data that are not publicly disclosed.It provides data for a period of time instead of as a point in time.It distinguishes liabilities from expenses.It distinguishes between current and long-term assets.

What information does a balance sheet provide to a decision maker?Summary of the operating performance of a company during a period Summary of the operating performance of a company at a particular date Summary of the cash flows of a company during a period Summary of the financial position of a company at a particular date Summary of the financial position of a company at a particular date What is an account payable?The amount to be paid by a company for dividends to shareholders The amount to be paid by a company in repayment of both loans and dividends The amount owed to a company that sold goods or services to a customer on credit The amount owed by a company that purchased goods or services from a supplier on credit 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?Excessive inventory storage costs Increased hiring, training, and overtime costs Delayed cash collections from credit customers Increased depreciation costs for facilities Increased hiring, training, and overtime costs What does a manager have control over in a cost center?Costs Assets Dividends Revenues Costs What should be considered when developing a measure to evaluate the performance of a manager?Only controllable costs Only noncontrollable costs Only indirect costs Only centralized costs Only controllable costs