WGU D196 OA| PRINCIPLES OF
ACCOUNTING ACTUAL EXAM QUESTIONS
AND ANSWERS 2025/26 LATEST VERSION
1. What is an example of direct materials?
Cost of robotic equipment in making
automobiles Cost of sandpaper in making
wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
ANS: Cost of aluminum in making an airplane
2. What is the effect of a company's accounting department
maintaining high ethical standards?
The company can hire fewer accountants to do the same amount
of work. The company can report more favorable results in its
financial statements. The company's accounting information will
increase in value.
The company's accounting information will decrease in value.
,ANS: The company's account- ing information will increase in value.
3. Why might employees be interested in their company's financial
accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data are often used in determining employee
bonuses. Financial statement data provide item-by-item product
cost information.
Financial statement data provide detailed internal budget information.
ANS: Financial statement data are often used in determining employee bonuses.
4. Which group establishes financial accounting rules in the
United States? Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board
(IASB)
American Institute of Certified Public Accountants (AICPA)
ANS: Financial Accounting Stan- dards Board (FASB)
5. Which report is one of the three primary financial
statements? Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
, Statement of cash flows
ANS: Statement of cash flows
6. A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting
equation?
ACCOUNTING ACTUAL EXAM QUESTIONS
AND ANSWERS 2025/26 LATEST VERSION
1. What is an example of direct materials?
Cost of robotic equipment in making
automobiles Cost of sandpaper in making
wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
ANS: Cost of aluminum in making an airplane
2. What is the effect of a company's accounting department
maintaining high ethical standards?
The company can hire fewer accountants to do the same amount
of work. The company can report more favorable results in its
financial statements. The company's accounting information will
increase in value.
The company's accounting information will decrease in value.
,ANS: The company's account- ing information will increase in value.
3. Why might employees be interested in their company's financial
accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data are often used in determining employee
bonuses. Financial statement data provide item-by-item product
cost information.
Financial statement data provide detailed internal budget information.
ANS: Financial statement data are often used in determining employee bonuses.
4. Which group establishes financial accounting rules in the
United States? Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board
(IASB)
American Institute of Certified Public Accountants (AICPA)
ANS: Financial Accounting Stan- dards Board (FASB)
5. Which report is one of the three primary financial
statements? Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
, Statement of cash flows
ANS: Statement of cash flows
6. A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting
equation?
