Wgu D196 Pre Assessment Study Guide Graded A+

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 are often used in determining employee bonuses. Financial statement data provide item-by-item product cost information. Financial statement data provide detailed internal budget information. {Ans: Financial statement data are often used in determining employee bonuses.}What is an account payable? The amount owed by a company that purchased goods or services from a supplier on credit The amount owed to a company that sold goods or services to a customer on credit The amount to be paid by a company in repayment of both loans and dividends The amount to be paid by a company for dividends to shareholders {Ans: The amount owed by a company that purchased goods or services from a supplier on credit}For purposes of cash flow classification in the statement of cash flows, which item is an operating activity? Buying equipment Selling bonds Distributing dividends Paying employees {Ans: Paying employees}A company reports these data: Total sales revenue = $250,000 Number of units sold = 50,000 units Variable costs = $100,000 If the company is operating at its break-even point, what is