WGU D196 PRE-ASSESSMENT QUESTIONS & ANSWERS 2026-2… EXAM
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU D196 Pre-
Assessment Questions
& Answers 2026-2027 |
Comprehensive Review
Verified Answers Exam Ready With Rationales
60 QUESTIONS
DOCUMENT OVERVIEW
This document provides 60 verified questions with correct answers pertaining to
managerial accounting. Each question pairs with its answer, ensuring clarity and
comprehension of key concepts within this subject area. It is suitable for students seeking
to study, review, or prepare for certification in accounting and management principles.
CONTENTS
Financial Accounting Q1–Q13
Managerial Accounting Q14–Q26
Budgeting and Forecasting Q27–Q37
Cost Accounting Q38–Q50
Costing Methods Q51–Q60
Page 1
, E XA M Q U EST I O N S
Q1 QUESTION 1 OF 60
What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
CORRECT ANSWER
Cost of aluminum in making an airplane
Q2 QUESTION 2 OF 60
Why might employees be interested in their company's financial accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data are often used in determining employee bonuses.
Financial statement data provide item-by-item product cost information.
Financial statement data provide detailed internal budget information.
CORRECT ANSWER
Financial statement data are often used in determining employee bonuses.
Q3 QUESTION 3 OF 60
Which group establishes financial accounting rules in the United States?
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants (AICPA)
CORRECT ANSWER
Financial Accounting Standards Board (FASB)
Page 2
, Q4 QUESTION 4 OF 60
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
Statement of cash flows
CORRECT ANSWER
Statement of cash flows
Q5 QUESTION 5 OF 60
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation?
Assets decrease by $5,000; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
CORRECT ANSWER
Assets decrease by $5,000; expenses increase by $5,000.
Q6 QUESTION 6 OF 60
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; revenues increase by $80,000.
CORRECT ANSWER
Assets increase by $80,000; liabilities increase by $80,000.
Page 3
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU D196 Pre-
Assessment Questions
& Answers 2026-2027 |
Comprehensive Review
Verified Answers Exam Ready With Rationales
60 QUESTIONS
DOCUMENT OVERVIEW
This document provides 60 verified questions with correct answers pertaining to
managerial accounting. Each question pairs with its answer, ensuring clarity and
comprehension of key concepts within this subject area. It is suitable for students seeking
to study, review, or prepare for certification in accounting and management principles.
CONTENTS
Financial Accounting Q1–Q13
Managerial Accounting Q14–Q26
Budgeting and Forecasting Q27–Q37
Cost Accounting Q38–Q50
Costing Methods Q51–Q60
Page 1
, E XA M Q U EST I O N S
Q1 QUESTION 1 OF 60
What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
CORRECT ANSWER
Cost of aluminum in making an airplane
Q2 QUESTION 2 OF 60
Why might employees be interested in their company's financial accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data are often used in determining employee bonuses.
Financial statement data provide item-by-item product cost information.
Financial statement data provide detailed internal budget information.
CORRECT ANSWER
Financial statement data are often used in determining employee bonuses.
Q3 QUESTION 3 OF 60
Which group establishes financial accounting rules in the United States?
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants (AICPA)
CORRECT ANSWER
Financial Accounting Standards Board (FASB)
Page 2
, Q4 QUESTION 4 OF 60
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
Statement of cash flows
CORRECT ANSWER
Statement of cash flows
Q5 QUESTION 5 OF 60
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation?
Assets decrease by $5,000; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
CORRECT ANSWER
Assets decrease by $5,000; expenses increase by $5,000.
Q6 QUESTION 6 OF 60
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; revenues increase by $80,000.
CORRECT ANSWER
Assets increase by $80,000; liabilities increase by $80,000.
Page 3
