D196 WGU Questions and Answers with Verified Solutions

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D196 WGU Questions and Answers with Verified Solutions What is the effect of a company's accounting department maintaining high ethical standards? The company can hire fewer accountants to do the s... ame 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 [Show More]

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