WGU D196 OA EXAM / FINANCIAL AND MANAGERIAL D196 WGU
OBJECTIVE ASSESSMENT 2026/2027 ALL COMPLETE 70 ACTUAL
QUESTIONS WITH WELL ELABORATED ANSWERS (100% CORRECT
VERIFIED SOLUTIONS) LATEST UPDATED VERSION |GUARANTEED
PASS A+
What is the purpose of the financial accounting cycle?
To turn information about transactions into financial statements
To gather information related to the expenses and income
generated by a company
To produce and analyze a company's monthly bank statement
To collect confidential information for management to use as a
competitive tool
Answer- To turn information about transactions into financial
statements
According to the accounting equation, the amount of liabilities
and equity must always be equal to another amount.
What is that other amount?
The sum of expenses and dividends
Cash
Assets
,The sum of revenues and expenses
Answer- Assets
Which item is an expense item?
Cost of goods sold
Loans payable
Accounts receivable
Accounts payable
Answer- Cost of goods sold
How is gross profit computed?
Total revenues minus total expenses
Sales minus cost of goods sold
Accounts receivable minus accounts payable
Total assets minus total liabilities
Answer- Sales minus cost of goods sold
, Which type of account is retained earnings?
Revenue
Asset
Equity
Liability
Answer- Equity
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
Answer- Paying employees
How does a classified balance sheet provide useful information
to a decision maker?
It distinguishes between current and long-term assets.
OBJECTIVE ASSESSMENT 2026/2027 ALL COMPLETE 70 ACTUAL
QUESTIONS WITH WELL ELABORATED ANSWERS (100% CORRECT
VERIFIED SOLUTIONS) LATEST UPDATED VERSION |GUARANTEED
PASS A+
What is the purpose of the financial accounting cycle?
To turn information about transactions into financial statements
To gather information related to the expenses and income
generated by a company
To produce and analyze a company's monthly bank statement
To collect confidential information for management to use as a
competitive tool
Answer- To turn information about transactions into financial
statements
According to the accounting equation, the amount of liabilities
and equity must always be equal to another amount.
What is that other amount?
The sum of expenses and dividends
Cash
Assets
,The sum of revenues and expenses
Answer- Assets
Which item is an expense item?
Cost of goods sold
Loans payable
Accounts receivable
Accounts payable
Answer- Cost of goods sold
How is gross profit computed?
Total revenues minus total expenses
Sales minus cost of goods sold
Accounts receivable minus accounts payable
Total assets minus total liabilities
Answer- Sales minus cost of goods sold
, Which type of account is retained earnings?
Revenue
Asset
Equity
Liability
Answer- Equity
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
Answer- Paying employees
How does a classified balance sheet provide useful information
to a decision maker?
It distinguishes between current and long-term assets.
