WGU D196 OA AND PRE ASSESSMENT ACTUAL
EXAM LATEST 2025/2026 COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) A NEW UPDATED VERSION |ALREADY
GRADED A+
What is a transaction?
-Two parties exchanging something of value
-An example of an online business document
-A type of commonly used accounting software
-A category of merchandiser or retailer
Answer- Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation
of the borrowing company?
-Expenses decrease owners' equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity.
,Answer- Expenses decrease owners' equity.
What is the impact of expenses on the accounting
equation?
-Expenses decrease owners' equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity.
Answer- Expenses decrease owners' equity.
Which type of account are accounts payable and notes
payable both examples of?
-Asset
-Equity
-Expense
-Liability
Answer- Liability
, What is the purpose of the financial accounting cycle?
-To turn information about transactions into financial
statements
-To gather information related to the expenses and income
generated by a company
-To produce and analyze a company's monthly bank
statement
-To collect confidential information for management to
use as a competitive tool
Answer- To turn information about transactions into
financial statements
According to the accounting equation, the amount of
liabilities and equity must always be equal to another
amount.
What is that other amount?
-Cash
-The sum of expenses and dividends
-Assets
EXAM LATEST 2025/2026 COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) A NEW UPDATED VERSION |ALREADY
GRADED A+
What is a transaction?
-Two parties exchanging something of value
-An example of an online business document
-A type of commonly used accounting software
-A category of merchandiser or retailer
Answer- Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation
of the borrowing company?
-Expenses decrease owners' equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity.
,Answer- Expenses decrease owners' equity.
What is the impact of expenses on the accounting
equation?
-Expenses decrease owners' equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity.
Answer- Expenses decrease owners' equity.
Which type of account are accounts payable and notes
payable both examples of?
-Asset
-Equity
-Expense
-Liability
Answer- Liability
, What is the purpose of the financial accounting cycle?
-To turn information about transactions into financial
statements
-To gather information related to the expenses and income
generated by a company
-To produce and analyze a company's monthly bank
statement
-To collect confidential information for management to
use as a competitive tool
Answer- To turn information about transactions into
financial statements
According to the accounting equation, the amount of
liabilities and equity must always be equal to another
amount.
What is that other amount?
-Cash
-The sum of expenses and dividends
-Assets
