WGU D774 Exam Introduction to
Business Accountingg| Questions and
Verified Answers | 100% Correct | Rated
A+ | 2025/2026 Guide
Which decision is made based on the amount of the sales forecast?
Deciding whether there is a need to locate additional suppliers
Specifying how high or low to set the company's income tax rate
Deciding on the appropriate date to file the 10-K report with the SEC
Specifying which jurisdiction in which to pay payroll tax
- Correct Answer - Deciding whether there is a need to locate additional
suppliers
Which factor should be considered in preparing a production budget?
Amount of budgeted sales
Desired payroll tax strategy
Intensity of competition
Degree of impact of government policies
- Correct Answer - Amount of budgeted sales
Why is determining the right sales estimate the most important part of
the budgeting process?
,- Correct Answer - All other budgets, such as purchases and labor, are
developed based on projected sales.
Which factor is one of the controllable internal variables involved in
projecting accurate sales?
Economic conditions
Customer tastes
Selling price
Seasonal cycles - Correct Answer - Selling price
Which question is a consideration in deciding whether to use a zero-
based budget?
How long has it been since the company prepared a zero-based budget
?Is it possible to automate the entire budgeting process using last year's
numbers?
Is it possible to roll forward unused funds from the previous year without
any additional review?
How many senior managers have recently received profit-based
bonuses? - Correct Answer - How long has it been since the company
prepared a zero-based budget?
Which characteristic is an advantage of zero-based budgeting? - Correct
Answer - Gets rid of costs that have become obsolete over time
,Which characteristic is a major disadvantage of zero-based budgeting? -
Correct Answer - Expensive process
Which characteristic of an expense is required in order to justify
including the expense in this year's budget under zero-based budgeting?
- Correct Answer - It has a current and specific justification.
Why would a company's employees be directly interested in the
company's income statement?
- Correct Answer - To assess the current profitability of the company, its
performance, and its liquidity
Which information is contained in the reported amount of net income?
- Correct Answer - The amount by which revenues exceed expenses
Which measurement is highlighted in the multi-step format for the
income statement?
- Correct Answer - Operating income
Which label refers to the costs of buying or making the products a
company sells? - Correct Answer - Cost of sales
Which item is listed first on the income statement?
, - Correct Answer - Revenues
Which item is reported in an income statement?
- Correct Answer - Revenues
In which situation does a company report revenue?
- Correct Answer - When products or services are sold
Which item should be reported as revenue in the income statement?
- Correct Answer - Amount earned from customers for the sale of goods
Alliah Company is preparing to do an initial public offering (IPO) of its
shares next year. Alliah knows that investors use a company's net
income in their valuation models to determine how much an IPO
company's shares are worth. Alliah's founders are eager for this IPO to
do well so that their many years of work will be validated in the stock
market. Here are some data from Alliah Company's financial statements:
Inventory
Accounts Payable
Expenses
Capital Stock (also called Paid-in Capital)
Accounts Receivable
Cash
Business Accountingg| Questions and
Verified Answers | 100% Correct | Rated
A+ | 2025/2026 Guide
Which decision is made based on the amount of the sales forecast?
Deciding whether there is a need to locate additional suppliers
Specifying how high or low to set the company's income tax rate
Deciding on the appropriate date to file the 10-K report with the SEC
Specifying which jurisdiction in which to pay payroll tax
- Correct Answer - Deciding whether there is a need to locate additional
suppliers
Which factor should be considered in preparing a production budget?
Amount of budgeted sales
Desired payroll tax strategy
Intensity of competition
Degree of impact of government policies
- Correct Answer - Amount of budgeted sales
Why is determining the right sales estimate the most important part of
the budgeting process?
,- Correct Answer - All other budgets, such as purchases and labor, are
developed based on projected sales.
Which factor is one of the controllable internal variables involved in
projecting accurate sales?
Economic conditions
Customer tastes
Selling price
Seasonal cycles - Correct Answer - Selling price
Which question is a consideration in deciding whether to use a zero-
based budget?
How long has it been since the company prepared a zero-based budget
?Is it possible to automate the entire budgeting process using last year's
numbers?
Is it possible to roll forward unused funds from the previous year without
any additional review?
How many senior managers have recently received profit-based
bonuses? - Correct Answer - How long has it been since the company
prepared a zero-based budget?
Which characteristic is an advantage of zero-based budgeting? - Correct
Answer - Gets rid of costs that have become obsolete over time
,Which characteristic is a major disadvantage of zero-based budgeting? -
Correct Answer - Expensive process
Which characteristic of an expense is required in order to justify
including the expense in this year's budget under zero-based budgeting?
- Correct Answer - It has a current and specific justification.
Why would a company's employees be directly interested in the
company's income statement?
- Correct Answer - To assess the current profitability of the company, its
performance, and its liquidity
Which information is contained in the reported amount of net income?
- Correct Answer - The amount by which revenues exceed expenses
Which measurement is highlighted in the multi-step format for the
income statement?
- Correct Answer - Operating income
Which label refers to the costs of buying or making the products a
company sells? - Correct Answer - Cost of sales
Which item is listed first on the income statement?
, - Correct Answer - Revenues
Which item is reported in an income statement?
- Correct Answer - Revenues
In which situation does a company report revenue?
- Correct Answer - When products or services are sold
Which item should be reported as revenue in the income statement?
- Correct Answer - Amount earned from customers for the sale of goods
Alliah Company is preparing to do an initial public offering (IPO) of its
shares next year. Alliah knows that investors use a company's net
income in their valuation models to determine how much an IPO
company's shares are worth. Alliah's founders are eager for this IPO to
do well so that their many years of work will be validated in the stock
market. Here are some data from Alliah Company's financial statements:
Inventory
Accounts Payable
Expenses
Capital Stock (also called Paid-in Capital)
Accounts Receivable
Cash
