WGU D196 TEST BANK FOR OA AND
PREASSESSMENT REVIEW 2026
QUESTIONS AND CORRECT ANSWERS
\Q\.1. Which budget should include all production costs other than those for direct materials
and direct labor?
A.Sales budget
B.Direct materials budget
C.Manufacturing overhead budget
D. Production budget - ANSWERS✔-c
\Q\.2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - ANSWERS✔-c
\Q\.3 .On which financial statement would you see the valuation of a company's asset
accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - ANSWERS✔-B
,\Q\.4. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions - ANSWERS✔-c
\Q\.5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements - ANSWERS✔-d
\Q\.6. On which financial statement would you see cash flows from financing activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - ANSWERS✔-d
\Q\.7. Whose job is it to make sure that investors are provided with full and fair information
about publicly traded companies?
FASB
AICPA
IASB
SEC - ANSWERS✔-d
\Q\.8. How does a classified balance sheet provide useful information to a decision maker?
, a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time - ANSWERS✔-a
\Q\.9. In some companies, the performance measures for profit center managers are heavily
influenced by cost allocations downward from organizational units (such as company
headquarters). Why is this a mistake?
a.Controllable costs should not be included in the performance evaluation measure of a profit
center manager
b.Revenues should not be included in the performance evaluation measure of a profit center
manager
c.Uncontrollable costs should not be included in the performance evaluation measure of a profit
center manager
d. Direct costs should not be included in the performance evaluation measure of a profit center
manager - ANSWERS✔-c
\Q\.10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product - ANSWERS✔-d
\Q\.11. Which label is given to the cost of wages for factory supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses - ANSWERS✔-c
PREASSESSMENT REVIEW 2026
QUESTIONS AND CORRECT ANSWERS
\Q\.1. Which budget should include all production costs other than those for direct materials
and direct labor?
A.Sales budget
B.Direct materials budget
C.Manufacturing overhead budget
D. Production budget - ANSWERS✔-c
\Q\.2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - ANSWERS✔-c
\Q\.3 .On which financial statement would you see the valuation of a company's asset
accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - ANSWERS✔-B
,\Q\.4. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions - ANSWERS✔-c
\Q\.5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements - ANSWERS✔-d
\Q\.6. On which financial statement would you see cash flows from financing activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - ANSWERS✔-d
\Q\.7. Whose job is it to make sure that investors are provided with full and fair information
about publicly traded companies?
FASB
AICPA
IASB
SEC - ANSWERS✔-d
\Q\.8. How does a classified balance sheet provide useful information to a decision maker?
, a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time - ANSWERS✔-a
\Q\.9. In some companies, the performance measures for profit center managers are heavily
influenced by cost allocations downward from organizational units (such as company
headquarters). Why is this a mistake?
a.Controllable costs should not be included in the performance evaluation measure of a profit
center manager
b.Revenues should not be included in the performance evaluation measure of a profit center
manager
c.Uncontrollable costs should not be included in the performance evaluation measure of a profit
center manager
d. Direct costs should not be included in the performance evaluation measure of a profit center
manager - ANSWERS✔-c
\Q\.10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product - ANSWERS✔-d
\Q\.11. Which label is given to the cost of wages for factory supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses - ANSWERS✔-c
