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D196
WGU D196 Objective Assessment (NEW 2026/ 2027 Update)
Principles of Financial and Managerial Accounting Review|
Questions & Answers | Grade A| 100% Correct
1. A nurse manager is reviewing the hospital's annual report. Why might nursing staff be
interested in the organization's financial accounting information?
A. It determines the annual budget for new medical equipment.
B. Financial statement data are often used in determining employee bonuses.
C. It outlines the clinical protocols for patient care.
D. It lists the schedule for mandatory staff training.
CORRECT ANSWER: B
Rationale: Financial performance metrics in accounting statements are frequently tied
to organizational bonus structures and incentive plans, which can directly impact
employee compensation.
2. Which body is responsible for establishing the financial accounting rules that a non-
profit hospital in the United States must follow?
A. Securities and Exchange Commission (SEC)
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B. Internal Revenue Service (IRS)
C. Financial Accounting Standards Board (FASB)
D. Centers for Medicare & Medicaid Services (CMS)
CORRECT ANSWER: C
Rationale: The Financial Accounting Standards Board (FASB) is the private, independent
organization that establishes generally accepted accounting principles (GAAP) in the
United States.
3. A hospital owes money for recent medical supply purchases and has a long-term loan
for a new imaging wing. In accounting, both "accounts payable" and "notes payable" are
examples of what type of account?
A. Asset
B. Liability
C. Equity
D. Revenue
CORRECT ANSWER: B
Rationale: Liabilities are obligations owed by the entity. Accounts payable (short-term)
and notes payable (often long-term) both represent amounts the organization owes to
creditors.
D196
D196
WGU D196 Objective Assessment (NEW 2026/ 2027 Update)
Principles of Financial and Managerial Accounting Review|
Questions & Answers | Grade A| 100% Correct
1. A nurse manager is reviewing the hospital's annual report. Why might nursing staff be
interested in the organization's financial accounting information?
A. It determines the annual budget for new medical equipment.
B. Financial statement data are often used in determining employee bonuses.
C. It outlines the clinical protocols for patient care.
D. It lists the schedule for mandatory staff training.
CORRECT ANSWER: B
Rationale: Financial performance metrics in accounting statements are frequently tied
to organizational bonus structures and incentive plans, which can directly impact
employee compensation.
2. Which body is responsible for establishing the financial accounting rules that a non-
profit hospital in the United States must follow?
A. Securities and Exchange Commission (SEC)
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B. Internal Revenue Service (IRS)
C. Financial Accounting Standards Board (FASB)
D. Centers for Medicare & Medicaid Services (CMS)
CORRECT ANSWER: C
Rationale: The Financial Accounting Standards Board (FASB) is the private, independent
organization that establishes generally accepted accounting principles (GAAP) in the
United States.
3. A hospital owes money for recent medical supply purchases and has a long-term loan
for a new imaging wing. In accounting, both "accounts payable" and "notes payable" are
examples of what type of account?
A. Asset
B. Liability
C. Equity
D. Revenue
CORRECT ANSWER: B
Rationale: Liabilities are obligations owed by the entity. Accounts payable (short-term)
and notes payable (often long-term) both represent amounts the organization owes to
creditors.
D196
