Wgu D196 Pre-Assessment 56 Correctly Answered Questions Latest Update

A company borrowed $80,000 cash from a bank. How does this transaction affect the accounting equation of the borrowing company? -Expenses decrease owners' equity. -Expenses increase liabilities. -Expenses decrease liabilities. -Expenses increase owners' equity. {Ans: Expenses decrease owners' equity.}What is an example of manufacturing overhead? Cost of bricks in making a building Cost of concrete in making a road Cost of sandpaper in making wood furniture Cost of aluminum in making an airplane {Ans: Cost of sandpaper in making wood furniture}Which item is an expense item? -Accounts receivable -Accounts payable -Cost of goods sold -Loans payable {Ans: Cost of goods sold}In an ABC system, which name is given to a numerical measure reflecting the amount of a cost associated with a particular overhead cost activity? Cost metric Cost pool Cost system Cost driver {Ans: Cost driver}What information does a balance sheet provide to a decision maker? -Summary of the operating performance of a company at a particular date -Summary of the operating performance of a company during a period -Summary of the cash flows of a company during a period -Summary of the financial position of a company at a particular date {Ans: Summary of