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WGU D196
WGU D196 | Exam Guide| Objective Assessment Principles
of Financial & Managerial Accounting| Qs & As| Grade A|
100% Correct - (NEW 2025/ 2026)
Which overhead allocation method should be used for a business that mass-produces
breakfast cereal? - ANS ✓Process costing
Accounting - ANS ✓a system for providing "quantitative information, primarily financial
in nature, about economic entities that is intended to be useful in making economic
decisions.
Step 1 of decision making progress - ANS ✓Identify the issue
Step 2 of decision making progress - ANS ✓Gather information
Step 3 of decision making progress - ANS ✓Identify alternatives
Step 4 of decision making progress - ANS ✓Select the option that will most likely result
in the desired option
WGU D196
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WGU D196
Capital - ANS ✓The money used to buy things needed for a business. Money comes from
investors, creditors (lenders), or earnings from the business itself
Accounting cycle - ANS ✓The cycle includes several steps, which involve analyzing,
recording, classifying, summarizing, and reporting the transactions of a business. Help
you see how the accounting process (including the recording) turns transactions into
financial statements.
Revenues - ANS ✓The amount of assets created through the sale of goods and services.
Managerial accounting - ANS ✓The gathering and analysis of information for the
purpose of internal decision making
Financial accounting - ANS ✓The gathering, reporting, and analysis of information
primarily for the benefit of external users such as investors and creditors
Annual Report - ANS ✓A document that summarizes the results of operations and
financial status of a company for the past year and outlines future plans.
WGU D196
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WGU D196
Financial Statements - ANS ✓Reports such as the balance sheet, income statement, and
statement of cash flows, which summarize the financial status and results of operations
of a business entity.
Balance sheet - ANS ✓Reports the resources of a company (the assets), the company's
obligations (the liabilities), and the owners' equity, which represents the difference
between what is owned (assets) and what is owed (liabilities).
Assets - ANS ✓Economic resources (things of value) owned by a firm. Accounts
receivable, cash, inventory, buildings are examples of assets
Liabilities - ANS ✓obligations to pay cash, transfer other assets, or provide services to
someone else. Acccounts payable, taxes payable, mortgage payable, unearned revenue
are examples of this
Owner's Equity - ANS ✓The remaining claim against the assets of a business after the
liabilities have been deducted. Capital stock and retained earnings are examples of this
Income statement - ANS ✓Reports the amount of net income earned by a company
during a period. An income statement portrays the results of operations of a company
over a period of time.
WGU D196
WGU D196
WGU D196 | Exam Guide| Objective Assessment Principles
of Financial & Managerial Accounting| Qs & As| Grade A|
100% Correct - (NEW 2025/ 2026)
Which overhead allocation method should be used for a business that mass-produces
breakfast cereal? - ANS ✓Process costing
Accounting - ANS ✓a system for providing "quantitative information, primarily financial
in nature, about economic entities that is intended to be useful in making economic
decisions.
Step 1 of decision making progress - ANS ✓Identify the issue
Step 2 of decision making progress - ANS ✓Gather information
Step 3 of decision making progress - ANS ✓Identify alternatives
Step 4 of decision making progress - ANS ✓Select the option that will most likely result
in the desired option
WGU D196
, 2
WGU D196
Capital - ANS ✓The money used to buy things needed for a business. Money comes from
investors, creditors (lenders), or earnings from the business itself
Accounting cycle - ANS ✓The cycle includes several steps, which involve analyzing,
recording, classifying, summarizing, and reporting the transactions of a business. Help
you see how the accounting process (including the recording) turns transactions into
financial statements.
Revenues - ANS ✓The amount of assets created through the sale of goods and services.
Managerial accounting - ANS ✓The gathering and analysis of information for the
purpose of internal decision making
Financial accounting - ANS ✓The gathering, reporting, and analysis of information
primarily for the benefit of external users such as investors and creditors
Annual Report - ANS ✓A document that summarizes the results of operations and
financial status of a company for the past year and outlines future plans.
WGU D196
, 3
WGU D196
Financial Statements - ANS ✓Reports such as the balance sheet, income statement, and
statement of cash flows, which summarize the financial status and results of operations
of a business entity.
Balance sheet - ANS ✓Reports the resources of a company (the assets), the company's
obligations (the liabilities), and the owners' equity, which represents the difference
between what is owned (assets) and what is owed (liabilities).
Assets - ANS ✓Economic resources (things of value) owned by a firm. Accounts
receivable, cash, inventory, buildings are examples of assets
Liabilities - ANS ✓obligations to pay cash, transfer other assets, or provide services to
someone else. Acccounts payable, taxes payable, mortgage payable, unearned revenue
are examples of this
Owner's Equity - ANS ✓The remaining claim against the assets of a business after the
liabilities have been deducted. Capital stock and retained earnings are examples of this
Income statement - ANS ✓Reports the amount of net income earned by a company
during a period. An income statement portrays the results of operations of a company
over a period of time.
WGU D196
