WGU D196 Principles of Financial and Managerial Accounting
Pre-assessment Exam with 62 Questions and Verified Answers,
100% Graded A+
1. What is an example of direct materials?
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Cost of robotic equipment in making automobilesCo
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st of sandpaper in making wood furniture
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Cost of saws and hammers in constructing a house
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Cost of aluminum in making an airplane: Cost of aluminum in making an airplane
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2. What is the effect of a company's accounting department maintaining highethi
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cal standards?
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The company can hire fewer accountants to do the same amount of work. The c
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ompany can report more favorable results in its financial statements.The com
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pany's accounting information will increase in value.
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The company's accounting information will decrease in value.: The company'sacco
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unting information will increase in value.
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3. Why might employees be interested in their company's financial accountinginfor
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mation?
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,Financial statement data are used to record long term liabilities.
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Financial statement data are often used in determining employee bonuses.Fin
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ancial statement data provide item-by-item product cost information.
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Financial statement data provide detailed internal budget information.: Finan-
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cial statement data are often used in determining employee bonuses.
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4. Which group establishes financial accounting rules in the United States?Inte
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rnal Revenue Service (IRS)
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Financial Accounting Standards Board (FASB) Intern
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ational Accounting Standards Board (IASB)
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American Institute of Certified Public Accountants (AICPA): Financial Account-
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ing Standards Board (FASB)
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5. Which report is one of the three primary financial statements?Sta
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tement of management accounting
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Statement of the accounting cycleS z z z z z
tatement of stakeholder funds z z z
Statement of cash flows: Statement of cash flows
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6. A company paid $5,000 cash in advertising costs.
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How does this transaction affect the paying company's accounting equation?Asse
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,ts decrease by $5,000; liabilities increase by $5,000.
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Assets increase by $5,000; expenses increase by $5,000.Ass
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ets decrease by $5,000; expenses increase by $5,000.
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Assets decrease by $5,000; revenues increase by $5,000.: Assets decrease by
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$5,000; expenses increase by $5,000.
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7. What is a transaction?
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Two parties exchanging something of value
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, A type of commonly used accounting softwareA c
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ategory of merchandiser or retailerz z z z
An example of an online business document: Two parties exchanging somethingof val
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ue
8. A company borrowed $80,000 cash from a bank.
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How does this transaction affect the accounting equation of the borrowingcom
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pany?
Assets increase by $80,000; liabilities increase by $80,000. Assets in
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crease by $80,000; owners' equity increases by $80,000.Assets incre
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ase by $80,000; liabilities decrease by $80,000.
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Assets increase by $80,000; revenues increase by $80,000.: Assets increase by
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$80,000; liabilities increase by $80,000.
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9. What is the impact of expenses on the accounting equation?Exp
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enses decrease liabilities.z z
Expenses increase liabilities. Expens z z z
es decrease owners' equity.
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Expenses increase owners' equity.: Expenses decrease owners' equity.
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10. Which type of account are accounts payable and notes payable bothexa
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