pg. 1 WGU D196/ WGU D196 Managerial and Financial Accounting Actual Exam Questions/ Latest Final Exam 2024.
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.
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pg. 2 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.
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