WGU D196 PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING OA AND PRE ASSESSMENT NEWEST 2025/2026
COMPLETE ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS (CORRECT VERIFIED SOLUTIONS) LATEST UPDATED
VERSION |GUARANTEED PASS A+
Which type of account are accounts payable and notes
payable both examples of?
Liability
Expense
Asset
Equity
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?
The sum of expenses and dividends
Cash
Assets
The sum of revenues and expenses
Answer- Assets
Which item is an expense item?
,Cost of goods sold
Loans payable
Accounts receivable
Accounts payable
Answer- Cost of goods sold
How is gross profit computed?
Total revenues minus total expenses
Sales minus cost of goods sold
Accounts receivable minus accounts payable
Total assets minus total liabilities
Answer- Sales minus cost of goods sold
Which type of account is retained earnings?
Revenue
Asset
Equity
, Liability
Answer- Equity
For purposes of cash flow classification in the statement
of cash flows, which item is an operating activity?
Buying equipment
Selling bonds
Distributing dividends
Paying employees
Answer- Paying employees
How does a classified balance sheet provide useful
information to a decision maker?
It distinguishes between current and long-term assets.
It provides data for a period of time instead of as a point
in time.
It distinguishes liabilities from expenses.
ACCOUNTING OA AND PRE ASSESSMENT NEWEST 2025/2026
COMPLETE ACCURATE QUESTIONS AND CORRECT DETAILED
ANSWERS (CORRECT VERIFIED SOLUTIONS) LATEST UPDATED
VERSION |GUARANTEED PASS A+
Which type of account are accounts payable and notes
payable both examples of?
Liability
Expense
Asset
Equity
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?
The sum of expenses and dividends
Cash
Assets
The sum of revenues and expenses
Answer- Assets
Which item is an expense item?
,Cost of goods sold
Loans payable
Accounts receivable
Accounts payable
Answer- Cost of goods sold
How is gross profit computed?
Total revenues minus total expenses
Sales minus cost of goods sold
Accounts receivable minus accounts payable
Total assets minus total liabilities
Answer- Sales minus cost of goods sold
Which type of account is retained earnings?
Revenue
Asset
Equity
, Liability
Answer- Equity
For purposes of cash flow classification in the statement
of cash flows, which item is an operating activity?
Buying equipment
Selling bonds
Distributing dividends
Paying employees
Answer- Paying employees
How does a classified balance sheet provide useful
information to a decision maker?
It distinguishes between current and long-term assets.
It provides data for a period of time instead of as a point
in time.
It distinguishes liabilities from expenses.
