wgu d196 pre assessment

wgu d196 pre assessment 13 studiers today 4.4 (23 reviews) Students also studied Terms in this set (62) Western Governors UniversityD 196 Save pre assessment d089 70 terms Loveysbg21610 Preview D076 Finance Skills for Managers - ...57 terms knujolPreview

Pre-assessment: Principles of Accou...

Teacher 54 terms bethanymanies Preview D102 Fi 52 terms Am What is an example of direct materials?Cost of robotic equipment in making automobiles Cost of sandpaper in making wood furniture Cost of saws and hammers in constructing a house Cost of aluminum in making an airplane Cost of aluminum in making an airplane 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 can report more favorable results in its financial statements.The company's accounting information will increase in value.The company's accounting information will decrease 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 are often used in determining employee bonuses.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.

Which group establishes financial accounting rules in the United States?Internal Revenue Service (IRS) Financial Accounting Standards Board (FASB) International Accounting Standards Board (IASB) American Institute of Certified Public Accountants

(AICPA)

Financial Accounting Standards Board (FASB) Which report is one of the three primary financial statements?Statement of management accounting Statement of the accounting cycle Statement of stakeholder funds Statement of cash flows 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; liabilities increase by $5,000.Assets increase by $5,000; expenses increase by $5,000.Assets decrease by $5,000; expenses increase by $5,000.Assets decrease by $5,000; revenues increase by $5,000.Assets decrease by $5,000; expenses increase by $5,000.What is a transaction?Two parties exchanging something of value A type of commonly used accounting software A category of merchandiser or retailer 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; liabilities increase by

$80,000.

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; 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 decrease liabilities.Expenses increase liabilities.Expenses decrease owners' equity.Expenses increase owners' equity.Expenses decrease owners' equity.

Which type of account are accounts payable and notes payable both examples of?Liability Expense Asset Equity Liability What is the purpose of the financial accounting cycle?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 collect confidential information for management to use as a competitive tool 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?The sum of expenses and dividends Cash Assets The sum of revenues and expenses 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 Accounts receivable minus accounts payable Total assets minus total liabilities Sales minus cost of goods sold Which type of account is retained earnings?Revenue Asset Equity Liability Equity For purposes of cash flow classification in the statement of cash flows, which item is an operating activity?Buying equipment Selling bonds Distributing dividends Paying employees 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 for a period of time instead of as a point in time.It distinguishes liabilities from expenses.It provides data that are not publicly disclosed.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 financial position of a company at a particular date Summary of the cash flows of a company during a period Summary of the operating performance 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 owed by a company that purchased goods or services from a supplier on credit The amount owed to a company that sold goods or services to a customer on credit The amount to be paid by a company in repayment of both loans and dividends The amount to be paid by a company for dividends to shareholders The amount owed by a company that purchased goods or services from a supplier on credit Horizontal and Vertical Analysis Based on your analysis, what should management be concerned about?The increase in interest expenses over the past two years The increase in operating expenses over the past two years The increase in income taxes over the past two years The increase in production cost over the past two years The increase in operating expenses over the past two years You Selected Which action would make the profitability of the company in 20X9 the same as in 20X7?Increasing the proportion of gross profit to sales by about 2% Paying back interest expenses earlier in the year Decreasing the proportion of operating income to sales by about 2% Increasing the operating expenses by about $20,000 Increasing the proportion of gross profit to sales by about 2% Managing Cash Flow