WGU D196 Study Guide with 100% Verified Questions & Answers for

WGU D196 STUDY GUIDE
QUSTIONS WITH 100 % VERIFED
ANSWERS (2025&2026)

,A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; revenues increase by $80,000. - CORRECT ANSWER - Assets
increase by $80,000; liabilities increase by $80,000.


A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation?
Assets decrease by $5,000; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.

,Assets decrease by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000. - CORRECT ANSWER - Assets
decrease by $5,000; expenses increase by $5,000.


A company reports these data:
Price per unit = $25
Variable costs per unit = $15
Fixed costs = $15,000
Given these data, what is the variable cost ratio?


60%
50%

, 40%
20% - CORRECT ANSWER - 60%


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 the company's total contribution
margin?
$100,000
$200,000
$150,000