2/7/26, 7:05 AM WGU - D196 - Principles of Financial and Managerial Accounting (Excel Focus) EXAM (2026) UPDATE Verified Questions And Answ…
WGU - D196 - Principles of Financial and
Managerial Accounting (Excel Focus) EXAM
(2026) UPDATE Verified Questions And Answers
Save
Terms in this set (34)
What is the horizontal analysis =(Current Year - Previous Year)/Previous Year
formula you must memorize for
Excel?
What is the critical formatting rule for MUST put parentheses around the numerator: =(B2-
horizontal analysis in Excel? A2)/A2 NOT =B2-A2/A2
Example: 2024 sales are $150,000 =(B2-A2)/A2 which equals =(150000-120000)/120000
(cell B2), 2023 sales are $120,000 = 25%
(cell A2). What Excel formula gives
horizontal analysis?
What does a horizontal analysis Sales increased by 25% from the previous year to
result of 0.25 or 25% mean? the current year
What is the vertical analysis formula =Individual Item/Net Sales (with absolute reference
you must memorize for Excel? for Net Sales)
What is the critical formatting rule for Use absolute cell reference ($) for Net Sales:
vertical analysis in Excel? =B2/$B$10 NOT =B2/B10
https://quizlet.com/1140692479/wgu-d196-principles-of-financial-and-managerial-accounting-excel-focus-exam-2026-update-verified-questions-and-an… 1/5
, 2/7/26, 7:05 AM WGU - D196 - Principles of Financial and Managerial Accounting (Excel Focus) EXAM (2026) UPDATE Verified Questions And Answ…
Example: Cost of Goods Sold is =B5/$B$10 which equals =80000/$200000 = 40%
$80,000 (cell B5), Net Sales is
$200,000 (cell B10). What Excel
formula for vertical analysis?
What does a vertical analysis result Cost of Goods Sold represents 40% of Net Sales
of 0.40 or 40% mean?
Why must you use absolute So when you copy the formula down, it always
reference ($) in vertical analysis? divides by the same Net Sales cell, not changing
the denominator
Example: You're in cell C6 analyzing =C6/$C$15 (the $ signs keep C15 fixed when
Operating Expenses. Net Sales is in copying)
C15. What's the correct vertical
analysis formula?
If Net Sales = $300,000 and 45000/300000 = 0.15 or 15%
Operating Expenses = $45,000, what
should your vertical analysis show?
Example: Cell B8 contains Gross =B8/$B$12
Profit of $120,000. Cell B12 contains
Net Sales of $200,000. Write the
vertical analysis formula.
What happens if you forget Excel follows order of operations: it divides A2/A2
parentheses in horizontal analysis first (=1), then subtracts from B2, giving wrong
formula =B2-A2/A2? answer
Example: 2024 expenses $90,000, =90000-75000/75000 = 90000-1 = 89999
2023 expenses $75,000. Without (completely wrong instead of correct 20%
parentheses, what wrong result increase)
would =B3-A3/A3 give?
https://quizlet.com/1140692479/wgu-d196-principles-of-financial-and-managerial-accounting-excel-focus-exam-2026-update-verified-questions-and-an… 2/5
WGU - D196 - Principles of Financial and
Managerial Accounting (Excel Focus) EXAM
(2026) UPDATE Verified Questions And Answers
Save
Terms in this set (34)
What is the horizontal analysis =(Current Year - Previous Year)/Previous Year
formula you must memorize for
Excel?
What is the critical formatting rule for MUST put parentheses around the numerator: =(B2-
horizontal analysis in Excel? A2)/A2 NOT =B2-A2/A2
Example: 2024 sales are $150,000 =(B2-A2)/A2 which equals =(150000-120000)/120000
(cell B2), 2023 sales are $120,000 = 25%
(cell A2). What Excel formula gives
horizontal analysis?
What does a horizontal analysis Sales increased by 25% from the previous year to
result of 0.25 or 25% mean? the current year
What is the vertical analysis formula =Individual Item/Net Sales (with absolute reference
you must memorize for Excel? for Net Sales)
What is the critical formatting rule for Use absolute cell reference ($) for Net Sales:
vertical analysis in Excel? =B2/$B$10 NOT =B2/B10
https://quizlet.com/1140692479/wgu-d196-principles-of-financial-and-managerial-accounting-excel-focus-exam-2026-update-verified-questions-and-an… 1/5
, 2/7/26, 7:05 AM WGU - D196 - Principles of Financial and Managerial Accounting (Excel Focus) EXAM (2026) UPDATE Verified Questions And Answ…
Example: Cost of Goods Sold is =B5/$B$10 which equals =80000/$200000 = 40%
$80,000 (cell B5), Net Sales is
$200,000 (cell B10). What Excel
formula for vertical analysis?
What does a vertical analysis result Cost of Goods Sold represents 40% of Net Sales
of 0.40 or 40% mean?
Why must you use absolute So when you copy the formula down, it always
reference ($) in vertical analysis? divides by the same Net Sales cell, not changing
the denominator
Example: You're in cell C6 analyzing =C6/$C$15 (the $ signs keep C15 fixed when
Operating Expenses. Net Sales is in copying)
C15. What's the correct vertical
analysis formula?
If Net Sales = $300,000 and 45000/300000 = 0.15 or 15%
Operating Expenses = $45,000, what
should your vertical analysis show?
Example: Cell B8 contains Gross =B8/$B$12
Profit of $120,000. Cell B12 contains
Net Sales of $200,000. Write the
vertical analysis formula.
What happens if you forget Excel follows order of operations: it divides A2/A2
parentheses in horizontal analysis first (=1), then subtracts from B2, giving wrong
formula =B2-A2/A2? answer
Example: 2024 expenses $90,000, =90000-75000/75000 = 90000-1 = 89999
2023 expenses $75,000. Without (completely wrong instead of correct 20%
parentheses, what wrong result increase)
would =B3-A3/A3 give?
https://quizlet.com/1140692479/wgu-d196-principles-of-financial-and-managerial-accounting-excel-focus-exam-2026-update-verified-questions-and-an… 2/5
