WGU D19 FOR OA AND PRE ASSESSMENT ACTUAL EXAM GUIDE ()|VERIFIED EXAM QUESTIONS AND CORRECT ANSWERS ALL GRADED A+|GUARANTEED SUCCESS
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WGU D19 FOR OA AND PRE ASSESSMENT
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WGU D19 FOR OA AND PRE ASSESSMENT
WGU D19 FOR OA AND PRE ASSESSMENT ACTUAL EXAM GUIDE ()|VERIFIED EXAM QUESTIONS AND CORRECT ANSWERS ALL GRADED A+|GUARANTEED SUCCESS
What is the correct sequence of budgets in a manufacturing business? - ANSWER-Sales, production, direct materials
What is the effect of a company's acco...
WGU D19 FOR OA AND PRE
ASSESSMENT ACTUAL EXAM GUIDE
(2024-2025)|VERIFIED EXAM
QUESTIONS AND CORRECT
ANSWERS ALL GRADED
A+|GUARANTEED SUCCESS
What is the correct sequence of budgets in a manufacturing business? - ANSWER-
✅Sales, production, direct materials
What is the effect of a company's accounting department maintaining high ethical
standards? - ANSWER-✅The company's accounting information will increase in value.
Why might employees be interested in their company's financial accounting
information? - ANSWER-✅Financial statement data are often used in determining
employee bonuses.
Which group establishes financial accounting rules in the United States? - ANSWER-
✅Financial Accounting Standards Board (FASB)
Which report is one of the three primary financial statements? - ANSWER-
✅Statement of cash flows
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation? -
ANSWER-✅Assets increase by $5,000; expenses increase by $5,000.
A company borrowed $80,000 cash from a bank. - ANSWER-✅Assets increase by
$80,000; liabilities increase by $80,000.
What is the impact of expenses on the accounting equation? - ANSWER-✅Expenses
decrease owners' equity.
,Which type of account are accounts payable and notes payable both examples of? -
ANSWER-✅Liability
What is the purpose of the financial accounting cycle? - ANSWER-✅To gather
information related to the expenses and income generated by a company
According to the accounting equation, the amount of liabilities and equity must
always be equal to another amount.
What is that other amount? - ANSWER-✅Assets
Which item is an expense item? - ANSWER-✅Cost of goods sold
How is gross profit computed? - ANSWER-✅Sales minus cost of goods sold
Which type of account is retained earnings? - ANSWER-✅Equity
For purposes of cash flow classification in the statement of cash flows, which item is
an operating activity? - ANSWER-✅Paying Employees
How does a classified balance sheet provide useful information to a decision maker?
- ANSWER-✅It distinguishes between current and long-term assets
What information does a balance sheet provide to a decision maker? - ANSWER-
✅Summary of the financial position of a company at a particular date
What is an account payable? - ANSWER-✅The amount owed by a company that
purchased goods or services from a supplier on credit
Why is the net cash for December negative while total sales for December are the
highest out of the months from October through December? - ANSWER-✅Total cash
available does not reflect December sales because there was a high volume of credit
sales.
Managerial Accounting - ANSWER-✅focuses on the information needed for
planning, implementing plans, and controlling costs. For Internal decisions
Financial Accounting - ANSWER-✅concerned with reporting financial information to
external parties, such as stockholders, creditors, and regulators
What is looked at in Managerial Accounting? - ANSWER-✅~Product Costs
~Breakeven Analysis
~Budgeting
~Performance Evaluation
~Outsource Production
What is looked at in Financial Accounting? - ANSWER-✅~Credit Analysis
, ~Regulatory Uses
~Estimate the Value of the Company
Balance Sheet - ANSWER-✅~ List as of a point in time
~ Resources/ Assets
~ Obligations / Liabilities
Income Statement - ANSWER-✅~ For a period of time (such as a year)
~ How much profit did we make?
Statement Cash Flows - ANSWER-✅~ For a period of time (such as a year)
~ Where did our cash come from? Where did it go?
The balance sheet - ANSWER-✅Reports the resources of a company (the assets),
the company's obligations (the liabilities), and the owners' equity, which represents
the difference between what is owned (assets) and what is owed (liabilities).
The income statement - ANSWER-✅Reports the amount of net income earned by a
company during a period.
The statement of cash flows. - ANSWER-✅Reports the amount of cash collected and
paid out by a company in the following three types of activities: operating, investing,
and financing.
Financial Accounting Standards Board (FASB). - ANSWER-✅Private nongovernment
group ~ Creates the rules but a private body without the power to enforce them.
Governmental Accounting Standards Board (GASB) - ANSWER-✅Non Governmental
organization that seeks to improve Accountants practices. Sets the accounting and
financial reporting standards for state and local government
Securities and Exchange Commission (SEC) - ANSWER-✅Legally authorized to take
over. Regulates Stocks and Exchanges
American Institute of Certified Public Accountants (AICPA) - ANSWER-✅Provides
CPA Certifications
Functions of the Accounting System: - ANSWER-✅~ Analysis
~ Bookkeeping
~ Evaluation
GAAP - ANSWER-✅Rules governing financial accountant ~ Generally Accepted
Practices
Public Company Accounting Oversight Board (PCAOB) - ANSWER-✅Oversees all
accounting firms
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