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WGU D196 Pre Assessment 2023 Questions and Answers 1.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'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. ANS The company's accounting information will increase in value.
2.Why might employees be interested in their company's financial account- ing 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.- ANS Financial statement data are often used in determining employee bonuses. 1 / 3
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3.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) ANS Financial Accounting Standards Board (FASB) 4.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 ANS Statement of cash flows 5.A company paid $5,000 cash in advertising costs.How does this transaction affect the paying company's accounting equa- tion?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. ANS Assets decrease by 2 / 3
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$5,000; expenses increase by $5,000.
6.What is a transaction?A type of commonly used accounting software A category of merchandiser or retailer Two parties exchanging something of value
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