WGU D250 – HEALTHCARE ECOSYSTEMS | 2025-2026 PRE-
ASSESSMENT ANSWERS | 100 VERIFIED QUESTIONS & A+ CORRECT
RESPONSES
Carefully compiled to match the format and difficulty of the actual WGU D250
Pre-Assessment, this resource includes realistic scenario-based questions with
verified correct answers that reflect current exam trends. Topics include state
and local government financial reporting, long-term obligations, revenue
classification, and interfund billing entries—critical areas in public healthcare
finance. Trusted by WGU students who score A+ consistently, this document is
an essential tool for confidently passing D250 and mastering public healthcare
financial systems.
Who does the GASB set accounting and financial reporting standards for?
A) Governments such as federal agencies, states, cities, counties, villages, and townships
B) Nonprofit organizations
C) State and local government entities and governmentally related units and agencies
D) State and local governments and all nonprofit organizations - CORRECT ANSWER-C
Why is the traditional business model of accounting inadequate for governments and nonprofit
organizations (NPOs)?
Governments and NPOs have different missions than businesses do.
B) Governments and NPOs have fewer assets than businesses do.
C) Businesses have intangible assets and governments and NPOs do not.
D) Taxes are a major expenditure of businesses but not for governments and NPOs. - CORRECT
ANSWER-A
A government issues 10-year bonds with a face value of $100,000. The bonds were issued at a 2%
premium. The government incurred $3,000 in issuance costs. Which expenditure should the city
record for this bond issuance?
A) $300
B) $1,000
C) $2,000
D) $3,000 - CORRECT ANSWER-D
,A government has determined that a capital asset has been impaired. The original cost was $25
million. The carrying value is $10 million. The government is revaluing the asset using the deflated
depreciated replacement cost approach. The deflated depreciated cost of the asset is $2.75 million.
What is the amount of the impairment loss?
A) $2.75 million
B) $7.25 million
C) $12.75 million
D) $22.25 million - CORRECT ANSWER-B
A governmental fund owns equipment worth $100,000 that is depreciated on a straight-line basis for
its useful life of 10 years. Each year the government spends $4,000 to maintain the equipment.
Which amount of expenditure related to the equipment should the fund report in its financial
statements?
A) $0
B) $4,000
C) $10,000
D) $14,000 - CORRECT ANSWER-B
A state had an investment with a cost of $600,000 that was actively traded. At the end of Year 1, the
price of an identical investment was $550,000 and the price of a similar investment was $575,000.
The comptroller calculated the fair value at $525,000 based on an income approach. What was the
value of the investment at the end of Year 1?
A) $525,000
B) $550,000
C) $575,000
D) $600,000 - CORRECT ANSWER-B
A government issued $10,000,000 of demand bonds and obtained an acceptable takeout agreement
from a bank. How should the entity recognize the bond proceeds in a government fund?
Debit cash: $10,000,000; credit proceeds from sale of demand bonds: $10,000,000
B) Debit proceeds from sale of demand bonds: $10,000,000; credit cash: $10,000,000
C) Debit cash: $10,000,000; credit bonds payable: $10,000,000
D) Debit bonds payable: $10,000,000; credit cash: $10,000,000 - CORRECT ANSWER-A
, A city had the following activity over the last year:
1. Issued a $10,000,000 bond
2. Factoring of $1,000,000 of receivables
3. Received a 90-day loan from the local bank for $100,000
4. Provided an intrafund loan for 180 days for a total of $1,000
Which amount is considered a long-term obligation on the city's government-wide financial
statements?
$10,000,000
B) $10,100,000
C) $11,000,000
D) $11,101,000 - CORRECT ANSWER-A
What should be the accounting entry for the issuance of $100,000 of bonds in the general fund?
Debit cash: $100,000; credit other financing sources—proceeds from bonds: $100,000
B) Debit cash: $100,000; credit revenues from bonds: $100,000
C) Debit cash: $100,000; credit transfer-in of funds from bonds: $100,000
D) Debit cash: $100,000; credit non-operating donation from the issuance of bonds: $100,000 -
CORRECT ANSWER-A
A city issued $3,000,000, long-term, 5% bonds to acquire a new building. Interest was paid annually
on December 31. The bonds were issued at a discount, and $2,500,000 was received. The proceeds
were recorded in the general fund. What is the accounting entry to reflect the proceeds of bond
proceeds?
Debit cash: $2,500,000; credit other financing sources—proceeds from bonds: $2,500,000
B) Debit cash: $3,000,000; credit other financing sources—proceeds from bonds: $3,000,000
C) Debit cash: $3,000,000; credit bonds payable: $3,000,000
D) Debit cash: $2,500,000; credit bonds payable: $2,500,000 - CORRECT ANSWER-A
A government maintains an internal service fund to insure all government vehicles for loss and
damage and for liability to third parties. The internal service fund bills the general fund for $400,000
and the utility fund for $100,000, of which $50,000 is for potential claims. $240,000 in claims was
incurred during 20X1. Which entry, if any, should the internal service fund make to recognize the
insurance premiums?
ASSESSMENT ANSWERS | 100 VERIFIED QUESTIONS & A+ CORRECT
RESPONSES
Carefully compiled to match the format and difficulty of the actual WGU D250
Pre-Assessment, this resource includes realistic scenario-based questions with
verified correct answers that reflect current exam trends. Topics include state
and local government financial reporting, long-term obligations, revenue
classification, and interfund billing entries—critical areas in public healthcare
finance. Trusted by WGU students who score A+ consistently, this document is
an essential tool for confidently passing D250 and mastering public healthcare
financial systems.
Who does the GASB set accounting and financial reporting standards for?
A) Governments such as federal agencies, states, cities, counties, villages, and townships
B) Nonprofit organizations
C) State and local government entities and governmentally related units and agencies
D) State and local governments and all nonprofit organizations - CORRECT ANSWER-C
Why is the traditional business model of accounting inadequate for governments and nonprofit
organizations (NPOs)?
Governments and NPOs have different missions than businesses do.
B) Governments and NPOs have fewer assets than businesses do.
C) Businesses have intangible assets and governments and NPOs do not.
D) Taxes are a major expenditure of businesses but not for governments and NPOs. - CORRECT
ANSWER-A
A government issues 10-year bonds with a face value of $100,000. The bonds were issued at a 2%
premium. The government incurred $3,000 in issuance costs. Which expenditure should the city
record for this bond issuance?
A) $300
B) $1,000
C) $2,000
D) $3,000 - CORRECT ANSWER-D
,A government has determined that a capital asset has been impaired. The original cost was $25
million. The carrying value is $10 million. The government is revaluing the asset using the deflated
depreciated replacement cost approach. The deflated depreciated cost of the asset is $2.75 million.
What is the amount of the impairment loss?
A) $2.75 million
B) $7.25 million
C) $12.75 million
D) $22.25 million - CORRECT ANSWER-B
A governmental fund owns equipment worth $100,000 that is depreciated on a straight-line basis for
its useful life of 10 years. Each year the government spends $4,000 to maintain the equipment.
Which amount of expenditure related to the equipment should the fund report in its financial
statements?
A) $0
B) $4,000
C) $10,000
D) $14,000 - CORRECT ANSWER-B
A state had an investment with a cost of $600,000 that was actively traded. At the end of Year 1, the
price of an identical investment was $550,000 and the price of a similar investment was $575,000.
The comptroller calculated the fair value at $525,000 based on an income approach. What was the
value of the investment at the end of Year 1?
A) $525,000
B) $550,000
C) $575,000
D) $600,000 - CORRECT ANSWER-B
A government issued $10,000,000 of demand bonds and obtained an acceptable takeout agreement
from a bank. How should the entity recognize the bond proceeds in a government fund?
Debit cash: $10,000,000; credit proceeds from sale of demand bonds: $10,000,000
B) Debit proceeds from sale of demand bonds: $10,000,000; credit cash: $10,000,000
C) Debit cash: $10,000,000; credit bonds payable: $10,000,000
D) Debit bonds payable: $10,000,000; credit cash: $10,000,000 - CORRECT ANSWER-A
, A city had the following activity over the last year:
1. Issued a $10,000,000 bond
2. Factoring of $1,000,000 of receivables
3. Received a 90-day loan from the local bank for $100,000
4. Provided an intrafund loan for 180 days for a total of $1,000
Which amount is considered a long-term obligation on the city's government-wide financial
statements?
$10,000,000
B) $10,100,000
C) $11,000,000
D) $11,101,000 - CORRECT ANSWER-A
What should be the accounting entry for the issuance of $100,000 of bonds in the general fund?
Debit cash: $100,000; credit other financing sources—proceeds from bonds: $100,000
B) Debit cash: $100,000; credit revenues from bonds: $100,000
C) Debit cash: $100,000; credit transfer-in of funds from bonds: $100,000
D) Debit cash: $100,000; credit non-operating donation from the issuance of bonds: $100,000 -
CORRECT ANSWER-A
A city issued $3,000,000, long-term, 5% bonds to acquire a new building. Interest was paid annually
on December 31. The bonds were issued at a discount, and $2,500,000 was received. The proceeds
were recorded in the general fund. What is the accounting entry to reflect the proceeds of bond
proceeds?
Debit cash: $2,500,000; credit other financing sources—proceeds from bonds: $2,500,000
B) Debit cash: $3,000,000; credit other financing sources—proceeds from bonds: $3,000,000
C) Debit cash: $3,000,000; credit bonds payable: $3,000,000
D) Debit cash: $2,500,000; credit bonds payable: $2,500,000 - CORRECT ANSWER-A
A government maintains an internal service fund to insure all government vehicles for loss and
damage and for liability to third parties. The internal service fund bills the general fund for $400,000
and the utility fund for $100,000, of which $50,000 is for potential claims. $240,000 in claims was
incurred during 20X1. Which entry, if any, should the internal service fund make to recognize the
insurance premiums?
