WGU D196 UPDATED ACTUAL Exam
Questions and CORRECT Answers
Absolute Cell Reference - CORRECT ANSWER - A cell reference that remains constant
when a formula is pasted into a new cell.
Account - CORRECT ANSWER - An accounting record in which the results of
transactions are accumulated; shows increases, decreases, and a balance.
Accounting - CORRECT ANSWER - A system for providing quantitative, financial
information about economic entities that is useful for making sound economic decisions.
Accounting provides the means of recording and communicating business activities and the
results of those activities.
Accounting Cycle - CORRECT ANSWER - The procedure for analyzing, recording,
summarizing, and reporting the transactions of a business.
Accounting Equation - CORRECT ANSWER - An algebraic equation that expresses the
relationship between assets (resources), liabilities (obligations), and owner's equity (net assets, or
the residual interest in a business after all liabilities have been met): Assets = Liabilities +
Owners' Equity.
Accounting System - CORRECT ANSWER - The procedures and processes used by a
business to analyze transactions, handle routine bookkeeping tasks, and structure information so
it can be used to evaluate the performance and health of the business.
Activity-based Costing (ABC) - CORRECT ANSWER - A method of attributing overhead
costs to products based on measurable factors that relate to activities that create overhead costs.
Actual Manufacturing Overhead - CORRECT ANSWER - Manufacturing costs other than
direct materials and direct labor.
,American Institute of Certified Public Accountants (AICPA) - CORRECT ANSWER -A
professional organization for CPAs in which membership is voluntary.
Annual Report - CORRECT ANSWER - A document that summarizes the results of
operations and financial status of a company for the past year and outlines future plans.
Applied Manufacturing Overhead - CORRECT ANSWER - The amount of the
manufacturing overhead that is assigned to the goods produced. This is usually done by using a
predetermined annual overhead rate.
Arm's-length Transaction - CORRECT ANSWER - A transaction in which a buyer and
seller act independently to get the best possible deal.
Articulation - CORRECT ANSWER - The interrelationships among the financial
statements.
Assets - CORRECT ANSWER - Economic resources that are owned or controlled by a
company.
Balance Sheet - CORRECT ANSWER - A summary of the financial position of a company
at a particular date.
Batch-level Activities - CORRECT ANSWER - Activities that take place in order to
support a batch or production run, regardless of the size of the batch.
Book Value - CORRECT ANSWER - The value of a company measured by the amount of
owner's equity in the company.
Break Even - CORRECT ANSWER - To make just enough income to cover costs without
any profit or loss.
, Break-even Point - CORRECT ANSWER - The amount of sales at which total costs of the
number of units sold equal total revenues; the point at which there is no profit or loss.
Budget - CORRECT ANSWER - A quantitative expression of a plan that shows how a
firm or organization will acquire and use resources over some specified period of time.
Business - CORRECT ANSWER - An organization operated with the objective of making
a profit from the sale of goods or services.
Business Documents - CORRECT ANSWER - Records of transactions used as the basis
for recording accounting entries; include invoices, check stubs, receipts, and similar business
papers.
Capital Budgeting - CORRECT ANSWER - Systematic planning for long-term
investments in operating assets.
Capital Stock - CORRECT ANSWER - The portion of stockholder's equity that represents
investment by owners in exchange for shares of stock; also referred to as paid-in capital.
Cash Budget - CORRECT ANSWER - A short-term schedule of expected cash inflows and
outflows during a period of time.
Certified Public Accountant (CPA) - CORRECT ANSWER - An accountant who has met
specified professional requirements established by the AICPA and local and state societies. A key
service provided by CPAs is the performance of independent audits of financial statements.
Classified Balance Sheet - CORRECT ANSWER - A balance sheet that distinguishes
between current and long-term assets.
Comparative Financial Statements - CORRECT ANSWER - Financial statements that
include information for both the current year and preceding year(s) that are prepared for users to
identify any significant changes in particular items.
Questions and CORRECT Answers
Absolute Cell Reference - CORRECT ANSWER - A cell reference that remains constant
when a formula is pasted into a new cell.
Account - CORRECT ANSWER - An accounting record in which the results of
transactions are accumulated; shows increases, decreases, and a balance.
Accounting - CORRECT ANSWER - A system for providing quantitative, financial
information about economic entities that is useful for making sound economic decisions.
Accounting provides the means of recording and communicating business activities and the
results of those activities.
Accounting Cycle - CORRECT ANSWER - The procedure for analyzing, recording,
summarizing, and reporting the transactions of a business.
Accounting Equation - CORRECT ANSWER - An algebraic equation that expresses the
relationship between assets (resources), liabilities (obligations), and owner's equity (net assets, or
the residual interest in a business after all liabilities have been met): Assets = Liabilities +
Owners' Equity.
Accounting System - CORRECT ANSWER - The procedures and processes used by a
business to analyze transactions, handle routine bookkeeping tasks, and structure information so
it can be used to evaluate the performance and health of the business.
Activity-based Costing (ABC) - CORRECT ANSWER - A method of attributing overhead
costs to products based on measurable factors that relate to activities that create overhead costs.
Actual Manufacturing Overhead - CORRECT ANSWER - Manufacturing costs other than
direct materials and direct labor.
,American Institute of Certified Public Accountants (AICPA) - CORRECT ANSWER -A
professional organization for CPAs in which membership is voluntary.
Annual Report - CORRECT ANSWER - A document that summarizes the results of
operations and financial status of a company for the past year and outlines future plans.
Applied Manufacturing Overhead - CORRECT ANSWER - The amount of the
manufacturing overhead that is assigned to the goods produced. This is usually done by using a
predetermined annual overhead rate.
Arm's-length Transaction - CORRECT ANSWER - A transaction in which a buyer and
seller act independently to get the best possible deal.
Articulation - CORRECT ANSWER - The interrelationships among the financial
statements.
Assets - CORRECT ANSWER - Economic resources that are owned or controlled by a
company.
Balance Sheet - CORRECT ANSWER - A summary of the financial position of a company
at a particular date.
Batch-level Activities - CORRECT ANSWER - Activities that take place in order to
support a batch or production run, regardless of the size of the batch.
Book Value - CORRECT ANSWER - The value of a company measured by the amount of
owner's equity in the company.
Break Even - CORRECT ANSWER - To make just enough income to cover costs without
any profit or loss.
, Break-even Point - CORRECT ANSWER - The amount of sales at which total costs of the
number of units sold equal total revenues; the point at which there is no profit or loss.
Budget - CORRECT ANSWER - A quantitative expression of a plan that shows how a
firm or organization will acquire and use resources over some specified period of time.
Business - CORRECT ANSWER - An organization operated with the objective of making
a profit from the sale of goods or services.
Business Documents - CORRECT ANSWER - Records of transactions used as the basis
for recording accounting entries; include invoices, check stubs, receipts, and similar business
papers.
Capital Budgeting - CORRECT ANSWER - Systematic planning for long-term
investments in operating assets.
Capital Stock - CORRECT ANSWER - The portion of stockholder's equity that represents
investment by owners in exchange for shares of stock; also referred to as paid-in capital.
Cash Budget - CORRECT ANSWER - A short-term schedule of expected cash inflows and
outflows during a period of time.
Certified Public Accountant (CPA) - CORRECT ANSWER - An accountant who has met
specified professional requirements established by the AICPA and local and state societies. A key
service provided by CPAs is the performance of independent audits of financial statements.
Classified Balance Sheet - CORRECT ANSWER - A balance sheet that distinguishes
between current and long-term assets.
Comparative Financial Statements - CORRECT ANSWER - Financial statements that
include information for both the current year and preceding year(s) that are prepared for users to
identify any significant changes in particular items.
