1|Page
WGU D251 OA NEWEST 2026 / WGU D251 ADAVANCED AUDITING
OBJECTIVE ASSESSMENT TEST BANK ACTUAL EXAM NEWEST 2026
ACTUAL EXAM COMPLETE 400 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
Which management assertion is addressed when determining if inventory
balances include all inventory transactions for the period? - ANSWER-
Completeness
What are inventories? - ANSWER-Tangible property held for sale, in process
of production for sale, or used in production of goods and services
How does inventory related to Accounts Payable? - ANSWER-When
shipments of raw materials and finished goods are received and placed in
inventory, this results in an account payable until payment is made
What are the 5 activities of acquisition and payment cycle? - ANSWER-1.
Requisition for goods and services
2. Purchase of goods and services
3. Receipt of goods and services
4. Approval of items for payment
5. Cash Disbursements
,2|Page
What is a requisition? - ANSWER-A formal request for goods and services
What does an approved requisition result in? - ANSWER-A purchase
What is supply chain management? - ANSWER-Management and control of
materials in the logistics process from the acquisition of raw materials to the
delivery of finished products to the end user (customer)
What is an Automated Purchasing System? - ANSWER-A networked
software system linking to vendors whose offerings and prices supply chain
management personnel have preapproved
What tasks does the automated purchasing system perform? - ANSWER-
Apply preloaded specifications and materials list, automatically flag invoices
that do not reconcile with POs, Create change orders and analyze variances
from POs
What are the 5 management assertions relevant to Inventory and Accounts
Payable? - ANSWER-1. Existence/Occurence
2. Completeness
3. Rights and Obligations
4. Valuation or allocation
,3|Page
5. Presentation and disclosure
Existence/Occurence relevant to Inventory - ANSWER-Inventory balances
exist at the balance sheet date
Completeness relevant to Inventory - ANSWER-Inventory balances include
all inventory transactions that have taken place during the period
Right and Obligations relevant to Inventory - ANSWER-The organization has
title to the inventory as of the balance sheet date.
Valuation or Allocation relevant to Inventory? - ANSWER-The recorded
balances reflect the true underlying economic value of those assets.
Presentation and disclosure relevant to Inventory? - ANSWER-Inventory is
properly classified on the balance sheet and disclosed in the notes to the
financial statements
Which 2 assertions are the most relevant for Inventory? - ANSWER-
Existence and valuation
, 4|Page
What is the most relevant assertion for accounts payable? - ANSWER-
Completeness
Why is completeness the most relevant assertion for accounts payable? -
ANSWER-The primary concern is that the account is understated; managers
may not record accounts payable transactions because they do not want to
record the associated liability and expense.
Existence/Occurrence relevant to AP - ANSWER-Accounts payable
balances exist at the balance sheet date.
Completeness relevant to AP - ANSWER-Accounts payable balances
include all accounts payable transactions that have taken place during the
period.
Right and Obligations relevant to AP - ANSWER-The organization actually
owes a liability for the accounts payable as of the balance sheet date.
Valuation or allocation relevant to AP - ANSWER-The recorded balances
reflect the true underlying economic value of those liabilities.
WGU D251 OA NEWEST 2026 / WGU D251 ADAVANCED AUDITING
OBJECTIVE ASSESSMENT TEST BANK ACTUAL EXAM NEWEST 2026
ACTUAL EXAM COMPLETE 400 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
Which management assertion is addressed when determining if inventory
balances include all inventory transactions for the period? - ANSWER-
Completeness
What are inventories? - ANSWER-Tangible property held for sale, in process
of production for sale, or used in production of goods and services
How does inventory related to Accounts Payable? - ANSWER-When
shipments of raw materials and finished goods are received and placed in
inventory, this results in an account payable until payment is made
What are the 5 activities of acquisition and payment cycle? - ANSWER-1.
Requisition for goods and services
2. Purchase of goods and services
3. Receipt of goods and services
4. Approval of items for payment
5. Cash Disbursements
,2|Page
What is a requisition? - ANSWER-A formal request for goods and services
What does an approved requisition result in? - ANSWER-A purchase
What is supply chain management? - ANSWER-Management and control of
materials in the logistics process from the acquisition of raw materials to the
delivery of finished products to the end user (customer)
What is an Automated Purchasing System? - ANSWER-A networked
software system linking to vendors whose offerings and prices supply chain
management personnel have preapproved
What tasks does the automated purchasing system perform? - ANSWER-
Apply preloaded specifications and materials list, automatically flag invoices
that do not reconcile with POs, Create change orders and analyze variances
from POs
What are the 5 management assertions relevant to Inventory and Accounts
Payable? - ANSWER-1. Existence/Occurence
2. Completeness
3. Rights and Obligations
4. Valuation or allocation
,3|Page
5. Presentation and disclosure
Existence/Occurence relevant to Inventory - ANSWER-Inventory balances
exist at the balance sheet date
Completeness relevant to Inventory - ANSWER-Inventory balances include
all inventory transactions that have taken place during the period
Right and Obligations relevant to Inventory - ANSWER-The organization has
title to the inventory as of the balance sheet date.
Valuation or Allocation relevant to Inventory? - ANSWER-The recorded
balances reflect the true underlying economic value of those assets.
Presentation and disclosure relevant to Inventory? - ANSWER-Inventory is
properly classified on the balance sheet and disclosed in the notes to the
financial statements
Which 2 assertions are the most relevant for Inventory? - ANSWER-
Existence and valuation
, 4|Page
What is the most relevant assertion for accounts payable? - ANSWER-
Completeness
Why is completeness the most relevant assertion for accounts payable? -
ANSWER-The primary concern is that the account is understated; managers
may not record accounts payable transactions because they do not want to
record the associated liability and expense.
Existence/Occurrence relevant to AP - ANSWER-Accounts payable
balances exist at the balance sheet date.
Completeness relevant to AP - ANSWER-Accounts payable balances
include all accounts payable transactions that have taken place during the
period.
Right and Obligations relevant to AP - ANSWER-The organization actually
owes a liability for the accounts payable as of the balance sheet date.
Valuation or allocation relevant to AP - ANSWER-The recorded balances
reflect the true underlying economic value of those liabilities.
