ACCOUNTING · 2026/2027 LATEST UPDATE
WGU D196 Principles of Financial
& Managerial Accounting Exam 2026
Journal Entries, Balance Sheet
-- Complete Study Guide
100+ Verified Exam Questions · Rated A+ · Guaranteed Results
✔ Financial Accounting (Journal ✔ Managerial Accounting (Cost
✔ Entries, Ledgers, Trial Balance) ✔ Behavior, CVP)
✔ Financial Statements (Balance ✔ Budgeting & Variance Analysis
✔ Sheet, Income Statement, Cash ✔ Internal Controls & Ethics
✔ Flow)
Instant PDF Download · 100% Verified Answers · Score 90%+
WGU D196 Principles of Financial & Managerial Accounting Exam 2026 Journal Entries, Balance Sheet -- 2026/2027 | Passing Score: 80% | Page 1 of 53
, BEST SELLER · ACCOUNTING
WGU D196 Principles of Financial &
Managerial Accounting Exam 2026
Journal Entries, Balance Sheet
2026/2027 -- Q&A with Verified Answers
Every section. Every topic. 100% correct answers guaranteed.
Used by 5,000+ accounting students to pass on their first attempt.
Journal Entries Ledgers & Trial Balance Balance Sheet Income Statement Cash Flow
Cost Behavior & CVP Budgeting Variance Analysis Internal Controls Ethics
A+
Rated
Used by 5,000+ students · 100% Verified Answers · 2026/2027 Latest Update
Instant PDF Download
WGU D196 Principles of Financial & Managerial Accounting Exam 2026 Journal Entries, Balance Sheet -- 2026/2027 | Passing Score: 80% | Page 2 of 53
, SECTION 1 | Financial Accounting (Journal Entries, Ledgers, Trial Balance) | Q1-Q20 | WGU D196 Principles of Financial &
Managerial Accounting Exam 2026 Journal Entries, Balance Sheet 2026/2027
Q1 Question 1 of 100
1. A company purchases office equipment for $12,000 cash on March 15. The accountant
records this transaction by debiting Office Equipment and crediting Cash for $12,000. This entry
correctly follows which accounting principle?
A. The conservatism principle, because recording the equipment at cost ensures assets are not
overstated on the balance sheet
B. The revenue recognition principle, because the equipment purchase represents an exchange that
generates future economic benefits
C. The duality principle, because every transaction affects at least two accounts with equal debits and
credits to maintain the accounting equation
D. The matching principle, because the cost of the equipment is matched against the revenue it helps
generate in the same period
Correct Answer: C
Rationale:
The duality principle requires every transaction to have equal debits and credits across at least two accounts.
Conservatism (choice B) guides uncertainty recognition, not double-entry recording. Revenue recognition
(choice C) applies to revenue, not asset purchases. The matching principle (choice D) addresses expense
timing, not the recording of a purchase.
Q2 Question 2 of 100
2. On June 1, a consulting firm receives $6,000 in advance from a client for three months of
services. The correct journal entry on June 1 is a debit to Cash and a credit to Unearned
Revenue for $6,000 because?
A. The revenue is immediately earned upon receipt of cash, and the credit to Unearned Revenue is a
temporary holding account for tax purposes
B. The cash receipt must be recorded as a contra asset until the service period is complete and the
revenue can be recognized
C. The revenue has not yet been earned, so the cash receipt creates a liability that will be recognized
as revenue when services are performed
D. The unearned revenue represents owner equity that increases when the company receives advance
payments from clients
Correct Answer: C
Rationale:
Under accrual accounting, cash received before services are performed creates a liability (Unearned
Revenue) that is earned over time. Revenue is not immediately earned (choice B). Unearned revenue is a
liability, not a contra asset (choice C) or equity (choice D).
WGU D196 Principles of Financial & Managerial Accounting Exam 2026 Journal Entries, Balance Sheet -- 2026/2027 | Passing Score: 80% | Page 3 of 53
, Q3 Question 3 of 100
3. A trial balance shows total debits of $84,500 and total credits of $83,200. The accountant
suspects a single error and discovers that a $1,300 accounts payable payment was recorded as
a debit to Accounts Payable but no credit was made to Cash. After correcting this error, the trial
balance will show?
A. Equal debits and credits of $83,200, because the debit to Accounts Payable was incorrect and
should be reversed
B. Equal debits and credits of $84,500, because adding the missing $1,300 credit to Cash brings total
credits to $84,500
C. Unequal totals still, because a single correction cannot fix both sides of the accounting equation
simultaneously
D. Equal debits and credits of $85,800, because both the debit and credit sides must be increased by
the missing amount
Correct Answer: B
Rationale:
The missing $1,300 credit to Cash caused credits to be understated by $1,300. Adding it brings credits from
$83,200 to $84,500, matching debits. Choice B would require removing the correct AP debit. Choice C is
wrong because a single omission can be fixed with one entry. Choice D double-counts the correction.
Q4 Question 4 of 100
4. A retailer purchases merchandise inventory for $5,000 on credit terms of 2/10, n/30. If the
retailer pays within the discount period, the journal entry to record the payment includes a?
A. Debit to Cash for $4,900, a debit to Purchase Discounts for $100, and a credit to Accounts Payable
for $5,000
B. Credit to Cash for $4,900, a credit to Merchandise Inventory for $100, and a debit to Accounts
Payable for $5,000
C. Credit to Cash for $5,000 and a debit to Accounts Payable for $5,000 with a separate entry for the
discount
D. Debit to Accounts Payable for $4,900 and a credit to Cash for $4,900 because the discount reduces
the payable
Correct Answer: B
Rationale:
Under the perpetual system, payment within the discount period debits AP for the full $5,000, credits Cash
for $4,900 (amount paid), and credits Inventory for $100 (discount reduces inventory cost). Choice B
incorrectly debits Cash. Choice C separates entries incorrectly. Choice D uses the net amount for AP, which
is wrong because AP was recorded at the full invoice amount.
WGU D196 Principles of Financial & Managerial Accounting Exam 2026 Journal Entries, Balance Sheet -- 2026/2027 | Passing Score: 80% | Page 4 of 53
WGU D196 Principles of Financial
& Managerial Accounting Exam 2026
Journal Entries, Balance Sheet
-- Complete Study Guide
100+ Verified Exam Questions · Rated A+ · Guaranteed Results
✔ Financial Accounting (Journal ✔ Managerial Accounting (Cost
✔ Entries, Ledgers, Trial Balance) ✔ Behavior, CVP)
✔ Financial Statements (Balance ✔ Budgeting & Variance Analysis
✔ Sheet, Income Statement, Cash ✔ Internal Controls & Ethics
✔ Flow)
Instant PDF Download · 100% Verified Answers · Score 90%+
WGU D196 Principles of Financial & Managerial Accounting Exam 2026 Journal Entries, Balance Sheet -- 2026/2027 | Passing Score: 80% | Page 1 of 53
, BEST SELLER · ACCOUNTING
WGU D196 Principles of Financial &
Managerial Accounting Exam 2026
Journal Entries, Balance Sheet
2026/2027 -- Q&A with Verified Answers
Every section. Every topic. 100% correct answers guaranteed.
Used by 5,000+ accounting students to pass on their first attempt.
Journal Entries Ledgers & Trial Balance Balance Sheet Income Statement Cash Flow
Cost Behavior & CVP Budgeting Variance Analysis Internal Controls Ethics
A+
Rated
Used by 5,000+ students · 100% Verified Answers · 2026/2027 Latest Update
Instant PDF Download
WGU D196 Principles of Financial & Managerial Accounting Exam 2026 Journal Entries, Balance Sheet -- 2026/2027 | Passing Score: 80% | Page 2 of 53
, SECTION 1 | Financial Accounting (Journal Entries, Ledgers, Trial Balance) | Q1-Q20 | WGU D196 Principles of Financial &
Managerial Accounting Exam 2026 Journal Entries, Balance Sheet 2026/2027
Q1 Question 1 of 100
1. A company purchases office equipment for $12,000 cash on March 15. The accountant
records this transaction by debiting Office Equipment and crediting Cash for $12,000. This entry
correctly follows which accounting principle?
A. The conservatism principle, because recording the equipment at cost ensures assets are not
overstated on the balance sheet
B. The revenue recognition principle, because the equipment purchase represents an exchange that
generates future economic benefits
C. The duality principle, because every transaction affects at least two accounts with equal debits and
credits to maintain the accounting equation
D. The matching principle, because the cost of the equipment is matched against the revenue it helps
generate in the same period
Correct Answer: C
Rationale:
The duality principle requires every transaction to have equal debits and credits across at least two accounts.
Conservatism (choice B) guides uncertainty recognition, not double-entry recording. Revenue recognition
(choice C) applies to revenue, not asset purchases. The matching principle (choice D) addresses expense
timing, not the recording of a purchase.
Q2 Question 2 of 100
2. On June 1, a consulting firm receives $6,000 in advance from a client for three months of
services. The correct journal entry on June 1 is a debit to Cash and a credit to Unearned
Revenue for $6,000 because?
A. The revenue is immediately earned upon receipt of cash, and the credit to Unearned Revenue is a
temporary holding account for tax purposes
B. The cash receipt must be recorded as a contra asset until the service period is complete and the
revenue can be recognized
C. The revenue has not yet been earned, so the cash receipt creates a liability that will be recognized
as revenue when services are performed
D. The unearned revenue represents owner equity that increases when the company receives advance
payments from clients
Correct Answer: C
Rationale:
Under accrual accounting, cash received before services are performed creates a liability (Unearned
Revenue) that is earned over time. Revenue is not immediately earned (choice B). Unearned revenue is a
liability, not a contra asset (choice C) or equity (choice D).
WGU D196 Principles of Financial & Managerial Accounting Exam 2026 Journal Entries, Balance Sheet -- 2026/2027 | Passing Score: 80% | Page 3 of 53
, Q3 Question 3 of 100
3. A trial balance shows total debits of $84,500 and total credits of $83,200. The accountant
suspects a single error and discovers that a $1,300 accounts payable payment was recorded as
a debit to Accounts Payable but no credit was made to Cash. After correcting this error, the trial
balance will show?
A. Equal debits and credits of $83,200, because the debit to Accounts Payable was incorrect and
should be reversed
B. Equal debits and credits of $84,500, because adding the missing $1,300 credit to Cash brings total
credits to $84,500
C. Unequal totals still, because a single correction cannot fix both sides of the accounting equation
simultaneously
D. Equal debits and credits of $85,800, because both the debit and credit sides must be increased by
the missing amount
Correct Answer: B
Rationale:
The missing $1,300 credit to Cash caused credits to be understated by $1,300. Adding it brings credits from
$83,200 to $84,500, matching debits. Choice B would require removing the correct AP debit. Choice C is
wrong because a single omission can be fixed with one entry. Choice D double-counts the correction.
Q4 Question 4 of 100
4. A retailer purchases merchandise inventory for $5,000 on credit terms of 2/10, n/30. If the
retailer pays within the discount period, the journal entry to record the payment includes a?
A. Debit to Cash for $4,900, a debit to Purchase Discounts for $100, and a credit to Accounts Payable
for $5,000
B. Credit to Cash for $4,900, a credit to Merchandise Inventory for $100, and a debit to Accounts
Payable for $5,000
C. Credit to Cash for $5,000 and a debit to Accounts Payable for $5,000 with a separate entry for the
discount
D. Debit to Accounts Payable for $4,900 and a credit to Cash for $4,900 because the discount reduces
the payable
Correct Answer: B
Rationale:
Under the perpetual system, payment within the discount period debits AP for the full $5,000, credits Cash
for $4,900 (amount paid), and credits Inventory for $100 (discount reduces inventory cost). Choice B
incorrectly debits Cash. Choice C separates entries incorrectly. Choice D uses the net amount for AP, which
is wrong because AP was recorded at the full invoice amount.
WGU D196 Principles of Financial & Managerial Accounting Exam 2026 Journal Entries, Balance Sheet -- 2026/2027 | Passing Score: 80% | Page 4 of 53
