WGU D196 TEST 2026 CERTIFICATION
EVALUATION EXAM QUESTIONS SOLUTIONS
GRADED A PLUS
◉ 2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense.
Answer: c
◉ 3 .On which financial statement would you see the valuation of a
company's asset accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings.
Answer: B
◉ 4. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
,b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions.
Answer: c
◉ 5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements.
Answer: d
◉ 6. On which financial statement would you see cash flows from
financing activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings.
Answer: d
◉ 7. Whose job is it to make sure that investors are provided with
full and fair information about publicly traded companies?
,FASB
AICPA
IASB
SEC.
Answer: d
◉ 8. How does a classified balance sheet provide useful information
to a decision maker?
a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time.
Answer: a
◉ 9. In some companies, the performance measures for profit center
managers are heavily influenced by cost allocations downward from
organizational units (such as company headquarters). Why is this a
mistake?
a.Controllable costs should not be included in the performance
evaluation measure of a profit center manager
b.Revenues should not be included in the performance evaluation
measure of a profit center manager
c.Uncontrollable costs should not be included in the performance
evaluation measure of a profit center manager
, d. Direct costs should not be included in the performance evaluation
measure of a profit center manager.
Answer: c
◉ 10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product.
Answer: d
◉ 11. Which label is given to the cost of wages for factory
supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses.
Answer: c
◉ 12. A company reports the following data: Price per unit = $20
Variable costs per unit = $12 Fixed costs = $12,000 Given these data,
what is the variable cost ratio?
a. 40%
EVALUATION EXAM QUESTIONS SOLUTIONS
GRADED A PLUS
◉ 2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense.
Answer: c
◉ 3 .On which financial statement would you see the valuation of a
company's asset accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings.
Answer: B
◉ 4. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
,b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions.
Answer: c
◉ 5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements.
Answer: d
◉ 6. On which financial statement would you see cash flows from
financing activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings.
Answer: d
◉ 7. Whose job is it to make sure that investors are provided with
full and fair information about publicly traded companies?
,FASB
AICPA
IASB
SEC.
Answer: d
◉ 8. How does a classified balance sheet provide useful information
to a decision maker?
a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time.
Answer: a
◉ 9. In some companies, the performance measures for profit center
managers are heavily influenced by cost allocations downward from
organizational units (such as company headquarters). Why is this a
mistake?
a.Controllable costs should not be included in the performance
evaluation measure of a profit center manager
b.Revenues should not be included in the performance evaluation
measure of a profit center manager
c.Uncontrollable costs should not be included in the performance
evaluation measure of a profit center manager
, d. Direct costs should not be included in the performance evaluation
measure of a profit center manager.
Answer: c
◉ 10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product.
Answer: d
◉ 11. Which label is given to the cost of wages for factory
supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses.
Answer: c
◉ 12. A company reports the following data: Price per unit = $20
Variable costs per unit = $12 Fixed costs = $12,000 Given these data,
what is the variable cost ratio?
a. 40%
