WGU d196 |PA| PRE-ASSESSMENT | EXAM
QUESTIONS AND ANSWERS
Correct
Incorrect
making assumptions,
, Because accounting policies are Because accounting involves only
irrelevant to financial reporting. factual data and no judgment.
Don't know?
2 of 183
Term
When is vertical financial statement analysis most valuable?
Give this one a try later!
When analyzing a company's long- When evaluating a company's
term investment strategies internal efficiency
When comparing companies When comparing companies with
in similar industries different revenue streams
Don't know?
3 of 183
Term
What is an opportunity cost
Give this one a try later!
Revenue lost from selecting a Savings achieved by delaying a
different alternative project
, Profit gained from selecting a new Expense incurred from choosing a
product line different supplier
Don't know?
4 of 183
Term
A manufacturing company that produces custom snowmobiles must
determine a systematic and rational way to allocate overhead costs.
How should the company allocate overhead costs?
Give this one a try later!
Allocate costs using a random Allocate costs equally across all
distribution method departments
Allocate costs with a
predetermined overhead rate Allocate costs based on sales
based on budgeted overhead revenue
costs.
Don't know?
5 of 183
Term
What is direct labor
, Give this one a try later!
Commissions of sales
Salaries of administrative staff
representatives
Wages of factory employees
who work directly on the Wages of maintenance workers
products manufactured
Don't know?
6 of 183
Term
What is an income statement?
Give this one a try later!
A report of the revenues and
An analysis of a company's equity
expenses of a company during
changes during a period.
a period
A report of a company's cash A summary of a company's assets
inflows and outflows over a period. and liabilities at a point in time.
Don't know?
7 of 183
Term
QUESTIONS AND ANSWERS
Correct
Incorrect
making assumptions,
, Because accounting policies are Because accounting involves only
irrelevant to financial reporting. factual data and no judgment.
Don't know?
2 of 183
Term
When is vertical financial statement analysis most valuable?
Give this one a try later!
When analyzing a company's long- When evaluating a company's
term investment strategies internal efficiency
When comparing companies When comparing companies with
in similar industries different revenue streams
Don't know?
3 of 183
Term
What is an opportunity cost
Give this one a try later!
Revenue lost from selecting a Savings achieved by delaying a
different alternative project
, Profit gained from selecting a new Expense incurred from choosing a
product line different supplier
Don't know?
4 of 183
Term
A manufacturing company that produces custom snowmobiles must
determine a systematic and rational way to allocate overhead costs.
How should the company allocate overhead costs?
Give this one a try later!
Allocate costs using a random Allocate costs equally across all
distribution method departments
Allocate costs with a
predetermined overhead rate Allocate costs based on sales
based on budgeted overhead revenue
costs.
Don't know?
5 of 183
Term
What is direct labor
, Give this one a try later!
Commissions of sales
Salaries of administrative staff
representatives
Wages of factory employees
who work directly on the Wages of maintenance workers
products manufactured
Don't know?
6 of 183
Term
What is an income statement?
Give this one a try later!
A report of the revenues and
An analysis of a company's equity
expenses of a company during
changes during a period.
a period
A report of a company's cash A summary of a company's assets
inflows and outflows over a period. and liabilities at a point in time.
Don't know?
7 of 183
Term
