WGU D196 Principles of Financial and
Managerial Accounting OA EXAM PREP
2026/2027 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Absolute Cell Reference - ANSWER A cell reference that remains constant
when a formula is pasted into a new cell.
2. Account - ANSWER An accounting record in which the results of
transactions are accumulated; shows increases, decreases, and a balance.
3. Accounting - ANSWER A system for providing quantitative, financial
information about economic entities that is useful for making sound
economic decisions. Accounting provides the means of recording and
communicating business activities and the results of those activities.
4. Accounting Cycle - ANSWER The procedure for analyzing, recording,
summarizing, and reporting the transactions of a business.
5. Accounting Equation - ANSWER An algebraic equation that expresses the
relationship between assets (resources), liabilities (obligations), and owner's
equity (net assets, or the residual interest in a business after all liabilities
have been met): Assets = Liabilities + Owners' Equity.
,6. Accounting System - ANSWER The procedures and processes used by a
business to analyze transactions, handle routine bookkeeping tasks, and
structure information so it can be used to evaluate the performance and
health of the business.
7. Activity-based Costing (ABC) - ANSWER A method of attributing
overhead costs to products based on measurable factors that relate to
activities that create overhead costs.
8. Actual Manufacturing Overhead - ANSWER Manufacturing costs other than
direct materials and direct labor.
9. Wholesalers - ANSWER Top-tier merchants who typically deal directly with
the original manufacturers to distribute products to retailers.
10.Work-in-process Inventory - ANSWER Inventory that is partly completed in
the production process, but not yet ready for sale to customers.
What is the effect of a company's accounting department maintaining high
ethical standards?
-The company can report more favorable results in its financial statements.
-The company's accounting information will decrease in value.
-The company can hire fewer accountants to do the same amount of work.
-The company's accounting information will increase in value. - ANSWER
The company's accounting information will increase in value.
11.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 provide detailed internal budget information.
-Financial statement data are often used in determining employee bonuses.
, -Financial statement data provide item-by-item product cost information. -
ANSWER Financial statement data are often used in determining employee
bonuses.
12.Which group establishes financial accounting rules in the United States?
-Internal Revenue Service (IRS)
-American Institute of Certified Public Accountants (AICPA)
-Financial Accounting Standards Board (FASB)
-International Accounting Standards Board (IASB) - ANSWER Financial
Accounting Standards Board (FASB)
13.Which cost category is not formally tracked in a company's accounting
system?
Out-of-pocket costs
Direct costs
Opportunity costs
Indirect costs - ANSWER Opportunity costs
14.A company reports these data:
Total sales revenue = $250,000
Number of units sold = 50,000 units
Variable costs = $100,000
If the company is operating at its break-even point, what is the company's
total contribution margin?
$100,000
$50,000
$150,000
$200,000 - ANSWER $150,000
15.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 - ANSWER Cost of aluminum in
making an airplane
16.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. - ANSWER
The company's accounting information will increase in value.
17.Annual Report - ANSWER A document that summarizes the results of
operations and financial status of a company for the past year and outlines
future plans.
18.Estimated Manufacturing Overhead - ANSWER Budgeted manufacturing
overhead costs that are used to establish the predetermined overhead rate.
19.Ethics - ANSWER The basic moral principles that govern an individual's
behavior.
20.Evaluating - ANSWER Analyzing results, rewarding performance, and
identifying problems.
21.Accounting - ANSWER A system for providing quantitative, financial
information about economic entities that is useful for making sound
economic decisions. Accounting provides the means of recording and
communicating business activities and the results of those activities.
Managerial Accounting OA EXAM PREP
2026/2027 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Absolute Cell Reference - ANSWER A cell reference that remains constant
when a formula is pasted into a new cell.
2. Account - ANSWER An accounting record in which the results of
transactions are accumulated; shows increases, decreases, and a balance.
3. Accounting - ANSWER A system for providing quantitative, financial
information about economic entities that is useful for making sound
economic decisions. Accounting provides the means of recording and
communicating business activities and the results of those activities.
4. Accounting Cycle - ANSWER The procedure for analyzing, recording,
summarizing, and reporting the transactions of a business.
5. Accounting Equation - ANSWER An algebraic equation that expresses the
relationship between assets (resources), liabilities (obligations), and owner's
equity (net assets, or the residual interest in a business after all liabilities
have been met): Assets = Liabilities + Owners' Equity.
,6. Accounting System - ANSWER The procedures and processes used by a
business to analyze transactions, handle routine bookkeeping tasks, and
structure information so it can be used to evaluate the performance and
health of the business.
7. Activity-based Costing (ABC) - ANSWER A method of attributing
overhead costs to products based on measurable factors that relate to
activities that create overhead costs.
8. Actual Manufacturing Overhead - ANSWER Manufacturing costs other than
direct materials and direct labor.
9. Wholesalers - ANSWER Top-tier merchants who typically deal directly with
the original manufacturers to distribute products to retailers.
10.Work-in-process Inventory - ANSWER Inventory that is partly completed in
the production process, but not yet ready for sale to customers.
What is the effect of a company's accounting department maintaining high
ethical standards?
-The company can report more favorable results in its financial statements.
-The company's accounting information will decrease in value.
-The company can hire fewer accountants to do the same amount of work.
-The company's accounting information will increase in value. - ANSWER
The company's accounting information will increase in value.
11.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 provide detailed internal budget information.
-Financial statement data are often used in determining employee bonuses.
, -Financial statement data provide item-by-item product cost information. -
ANSWER Financial statement data are often used in determining employee
bonuses.
12.Which group establishes financial accounting rules in the United States?
-Internal Revenue Service (IRS)
-American Institute of Certified Public Accountants (AICPA)
-Financial Accounting Standards Board (FASB)
-International Accounting Standards Board (IASB) - ANSWER Financial
Accounting Standards Board (FASB)
13.Which cost category is not formally tracked in a company's accounting
system?
Out-of-pocket costs
Direct costs
Opportunity costs
Indirect costs - ANSWER Opportunity costs
14.A company reports these data:
Total sales revenue = $250,000
Number of units sold = 50,000 units
Variable costs = $100,000
If the company is operating at its break-even point, what is the company's
total contribution margin?
$100,000
$50,000
$150,000
$200,000 - ANSWER $150,000
15.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 - ANSWER Cost of aluminum in
making an airplane
16.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. - ANSWER
The company's accounting information will increase in value.
17.Annual Report - ANSWER A document that summarizes the results of
operations and financial status of a company for the past year and outlines
future plans.
18.Estimated Manufacturing Overhead - ANSWER Budgeted manufacturing
overhead costs that are used to establish the predetermined overhead rate.
19.Ethics - ANSWER The basic moral principles that govern an individual's
behavior.
20.Evaluating - ANSWER Analyzing results, rewarding performance, and
identifying problems.
21.Accounting - ANSWER A system for providing quantitative, financial
information about economic entities that is useful for making sound
economic decisions. Accounting provides the means of recording and
communicating business activities and the results of those activities.
