WGU D196 OA AND PRE -ASSESSEMENT EXAM 2024/
D196 ACTUAL EXAM QUESTIONS WITH CORRECT
VERIFIED ANSWERS/ GRADED A+
1. A company reports the following data:
Total sales revenue = $275,000
Number of units sold = 25,000 units
Variable costs = $100,000
If the company is operating at its break-even point, what is the company's
total contribution margin?
a.$250,000
b.$175,000
c.$150,000
d. $125,000 - Correct Answer - b
2. How are period costs reported on an income statement?
a. As revenue
b. As an expense
c. As cost of goods sold
d. As an asset - Correct Answer - b
3. Which item is an example of a controllable cost?
a. Advertising costs
b. Rent expense
pg. 1
,c. Depreciation
d. Customer tastes and economic conditions - Correct Answer – a
4. Which of the following is not an operating expense?
a. Advertising and marketing
b. Office supplies
c. Utilities
d. Income taxes - Correct Answer - d
5. Type of accounts payable and notes payable are
a. Liability
b. asset
c. equity
d. none of the answers - Correct Answer - a
6. Purposes of accounting cycle?
a. potential gain from other alternatives when one alternative is chosen.
b. To turn information in to financial
c. turn off employees
d. All of the answers - Correct Answer - b
7. The amount of liabilities and equity must equal
a. Asset
b. balance sheet
c. retained of cash flows
pg. 2
,d. none of the answers - Correct Answer - a
8. salary is
a. liability
b. expense
c. a and b
d. none of the answers - Correct Answer - b
9. Example of Operating activity in the company is :
a. selling land
b. taxes activities
c. paying employees
d. all of the answers - Correct Answer - c
10. A company purchases equipment with a note payable. How does this
transaction affect the paying company's accounting equation?
a. Asset increases; Liability increases
b. Asset increases; Asset decreases
c. Asset increases; Expense increases
d .Asset increases; Equity decreases - Correct Answer - a
11. What is the impact of paying employee wages on the accounting
equation?
a. Increase owner's equity
b. Increase expense
c. Decrease expense
pg. 3
, d .Increase asset - Correct Answer - b
12. Which account is summarized on the balance sheet?
a. Expense account
b. Owner's equity
c. Revenue account
d. Cost of good sold - Correct Answer - b
13. A retail company purchased inventory costing $100,000. By the end of
the year, inventory costing $75,000 had been sold. How is the cost of
inventory reported in the financial statements?
a.$75,000 COGS on balance sheet
b.$75,000 inventory on balance sheet
c.$75,000 COGS on income statement
d. $75,000 inventory on income statement - Correct Answer - c
14. Which of the following is an example of a merchandising company?
a. Furniture maker
b. Locksmith
c. Landscaper
d. Clothing store - Correct Answer - d
15. Actual manufacturing overhead includes which of the following?
a. Direct labor and direct materials expenses
b. Manufacturing costs other than direct labor and direct materials
c. Manufacturing costs including direct labor and direct materials
pg. 4
D196 ACTUAL EXAM QUESTIONS WITH CORRECT
VERIFIED ANSWERS/ GRADED A+
1. A company reports the following data:
Total sales revenue = $275,000
Number of units sold = 25,000 units
Variable costs = $100,000
If the company is operating at its break-even point, what is the company's
total contribution margin?
a.$250,000
b.$175,000
c.$150,000
d. $125,000 - Correct Answer - b
2. How are period costs reported on an income statement?
a. As revenue
b. As an expense
c. As cost of goods sold
d. As an asset - Correct Answer - b
3. Which item is an example of a controllable cost?
a. Advertising costs
b. Rent expense
pg. 1
,c. Depreciation
d. Customer tastes and economic conditions - Correct Answer – a
4. Which of the following is not an operating expense?
a. Advertising and marketing
b. Office supplies
c. Utilities
d. Income taxes - Correct Answer - d
5. Type of accounts payable and notes payable are
a. Liability
b. asset
c. equity
d. none of the answers - Correct Answer - a
6. Purposes of accounting cycle?
a. potential gain from other alternatives when one alternative is chosen.
b. To turn information in to financial
c. turn off employees
d. All of the answers - Correct Answer - b
7. The amount of liabilities and equity must equal
a. Asset
b. balance sheet
c. retained of cash flows
pg. 2
,d. none of the answers - Correct Answer - a
8. salary is
a. liability
b. expense
c. a and b
d. none of the answers - Correct Answer - b
9. Example of Operating activity in the company is :
a. selling land
b. taxes activities
c. paying employees
d. all of the answers - Correct Answer - c
10. A company purchases equipment with a note payable. How does this
transaction affect the paying company's accounting equation?
a. Asset increases; Liability increases
b. Asset increases; Asset decreases
c. Asset increases; Expense increases
d .Asset increases; Equity decreases - Correct Answer - a
11. What is the impact of paying employee wages on the accounting
equation?
a. Increase owner's equity
b. Increase expense
c. Decrease expense
pg. 3
, d .Increase asset - Correct Answer - b
12. Which account is summarized on the balance sheet?
a. Expense account
b. Owner's equity
c. Revenue account
d. Cost of good sold - Correct Answer - b
13. A retail company purchased inventory costing $100,000. By the end of
the year, inventory costing $75,000 had been sold. How is the cost of
inventory reported in the financial statements?
a.$75,000 COGS on balance sheet
b.$75,000 inventory on balance sheet
c.$75,000 COGS on income statement
d. $75,000 inventory on income statement - Correct Answer - c
14. Which of the following is an example of a merchandising company?
a. Furniture maker
b. Locksmith
c. Landscaper
d. Clothing store - Correct Answer - d
15. Actual manufacturing overhead includes which of the following?
a. Direct labor and direct materials expenses
b. Manufacturing costs other than direct labor and direct materials
c. Manufacturing costs including direct labor and direct materials
pg. 4
