WGU D196 OA AND PRE - ASSESSMENT REVIEW
2024/2025 TEST BANK WITH 300+ ACTUAL EXAM
QUESTIONS AND VERIFIED ANSWERS (100%
CORRECT ANSWERS) GRADED A+ (BRAND NEW!!)
1. Which item is an example of a controllable cost?
a. Advertising costs
b. Rent expense
c. Depreciation
d. Customer tastes and economic conditions - Correct Answer - a
2. 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
3. What is the impact of paying employee wages on the accounting equation?
a. Increase owner's equity
b. Increase expense
c. Decrease expense
d. Increase asset - Correct Answer - b
4. Which account is summarized on the balance sheet?
a. Expense account
pg. 1
,b. Owner's equity
c. Revenue account
d. Cost of good sold - Correct Answer - b
5. 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
6. Which of the following is an example of a merchandising company?
a. Furniture maker
b. Locksmith
c. Landscaper
d. Clothing store - Correct Answer - d
7. 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
d .Non-manufacturing costs other than direct labor and direct materials - Correct Answer
-b
8. Activity based costing could be used by which of the following companies?
a. Large commercial and industrial construction
b. Healthcare organization
c. Car manufacturing company
pg. 2
,d. All of the above could use activity based costing - Correct Answer - d
9. How are the wages of a production supervisors classified in a manufacturing
company?
a. Direct labor expense
b. Manufacturing overhead
c. Selling expense
d. Direct materials expense - Correct Answer - b
10. Which business document involves the process of tracking the actual performance
of a company?
a. balance sheet
b. sales invoice and purchase order.
c. money order
d. none of the anwers - Correct Answer - b
11. Your company purchases new equipment for cash. Which accounts are increased
and decreased because of this transaction?
a. Cash increases and Equipment increases
b. Cash decreases and equipment decreases
c. Equipment increases and owners equity decreases
d. Equipment increases and cash decreases. - Correct Answer - d
12. What factors should the production supervisor consider in assembling her
production?
a. Projected sales, desired ending inventory, and amount of beginning inventory.
b. desired ending inventory, sales, and beginning inventory
c. beginning inventory, sales, and ending inventory
d. none of the answers - Correct Answer - a
pg. 3
, 13. BEP (units) formula
a. sales- cm
b. fixed costs / CM per unit
c. fixed cost / variance cost
d. fixed costs - cm per unit - Correct Answer - b
14. Earnings (Loss) Per Share (EPS)
a.net income /outstanding number of shares of stock.
b. number of shares of stock - net income
c. both alternatives
d. none of the alternatives - Correct Answer - a
15. What is the impact of expenses on the accounting equation?
a. Expenses decrease owners' equity.
b. revenue increases owner's equity
c. owners 's equity increase revenue
d. liability decrease owner's equity - Correct Answer - a
16. For purposes of cash flow classification in the statement of cash flows, which item is
an investing activity?
a. Repaying loans
b. Borrowing money
c. Distribution to owners
d. Purchasing land - Correct Answer - d
17. Which of the following is not an example of a cost driver?
a. Administrative expenses
b. Direct labor hours
c. Machine hours
pg. 4
2024/2025 TEST BANK WITH 300+ ACTUAL EXAM
QUESTIONS AND VERIFIED ANSWERS (100%
CORRECT ANSWERS) GRADED A+ (BRAND NEW!!)
1. Which item is an example of a controllable cost?
a. Advertising costs
b. Rent expense
c. Depreciation
d. Customer tastes and economic conditions - Correct Answer - a
2. 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
3. What is the impact of paying employee wages on the accounting equation?
a. Increase owner's equity
b. Increase expense
c. Decrease expense
d. Increase asset - Correct Answer - b
4. Which account is summarized on the balance sheet?
a. Expense account
pg. 1
,b. Owner's equity
c. Revenue account
d. Cost of good sold - Correct Answer - b
5. 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
6. Which of the following is an example of a merchandising company?
a. Furniture maker
b. Locksmith
c. Landscaper
d. Clothing store - Correct Answer - d
7. 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
d .Non-manufacturing costs other than direct labor and direct materials - Correct Answer
-b
8. Activity based costing could be used by which of the following companies?
a. Large commercial and industrial construction
b. Healthcare organization
c. Car manufacturing company
pg. 2
,d. All of the above could use activity based costing - Correct Answer - d
9. How are the wages of a production supervisors classified in a manufacturing
company?
a. Direct labor expense
b. Manufacturing overhead
c. Selling expense
d. Direct materials expense - Correct Answer - b
10. Which business document involves the process of tracking the actual performance
of a company?
a. balance sheet
b. sales invoice and purchase order.
c. money order
d. none of the anwers - Correct Answer - b
11. Your company purchases new equipment for cash. Which accounts are increased
and decreased because of this transaction?
a. Cash increases and Equipment increases
b. Cash decreases and equipment decreases
c. Equipment increases and owners equity decreases
d. Equipment increases and cash decreases. - Correct Answer - d
12. What factors should the production supervisor consider in assembling her
production?
a. Projected sales, desired ending inventory, and amount of beginning inventory.
b. desired ending inventory, sales, and beginning inventory
c. beginning inventory, sales, and ending inventory
d. none of the answers - Correct Answer - a
pg. 3
, 13. BEP (units) formula
a. sales- cm
b. fixed costs / CM per unit
c. fixed cost / variance cost
d. fixed costs - cm per unit - Correct Answer - b
14. Earnings (Loss) Per Share (EPS)
a.net income /outstanding number of shares of stock.
b. number of shares of stock - net income
c. both alternatives
d. none of the alternatives - Correct Answer - a
15. What is the impact of expenses on the accounting equation?
a. Expenses decrease owners' equity.
b. revenue increases owner's equity
c. owners 's equity increase revenue
d. liability decrease owner's equity - Correct Answer - a
16. For purposes of cash flow classification in the statement of cash flows, which item is
an investing activity?
a. Repaying loans
b. Borrowing money
c. Distribution to owners
d. Purchasing land - Correct Answer - d
17. Which of the following is not an example of a cost driver?
a. Administrative expenses
b. Direct labor hours
c. Machine hours
pg. 4
