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WGU D104 OBJECTIVE ASSESSMENT V1 AND V2
EXAM LATEST UPDATE THIS YEAR (2026-2027) ALL
300 QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES
1. A steel manufacturer uses the production variable method for depreciating assets. Which
combination best describes the depreciation method used?
A) Straight-line and activity
B) Double-declining balance and activity
C) Straight-line and sum-of-years'-digits
D) Double-declining balance and sum-of-years'-digits
Answer: A
The production variable method combines straight-line depreciation with activity-based (units of
production) depreciation, where depreciation is calculated based on actual usage or output
rather than time.
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2. A company invests $15,000,000 into a coal mine estimated to have 20 million tons of coal.
The mine is estimated to be in operation for the next five years. In Year 1, the company
extracted and sold 1 million tons of coal. How much is depletion in Year 1?
A) $750,000
B) $1,000,000
C) $2,250,000
D) $3,000,000
Answer: A
Depletion per ton = $15,000,,000,000 = $0.75 per ton. $0.75 × 1,000,000 tons extracted
= $750,000.
3. A company invested $15,000,000 in a coal mine estimated to have 1,500,000 tons of coal. In
the first year, the company extracted 100,000 tons. At the end of Year 1, it became clear that
the mine likely has only 700,000 tons remaining. Which depletion rate will be used starting in
Year 2?
A) $10.00 per ton
B) $15.00 per ton
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C) $20.00 per ton
D) $25.00 per ton
Answer: C
The remaining cost ($15,000,000) is divided by the revised remaining tons (700,000):
$15,000,,000 = $20.00 per ton.
4. A company reported total assets of $10,000,000 on December 31, 2018, and $14,000,000 on
December 31, 2019. Net sales revenue was $6,000,000 for 2018 and $8,000,000 for 2019. What
was the asset turnover ratio for 2019?
A) 0.50
B) 0.57
C) 0.60
D) 0.67
Answer: D
Asset turnover = Net sales / Average total assets. Average assets = ($10,000,000 + $14,000,000)
/ 2 = $12,000,000. $8,000,000 / $12,000,000 = 0.67.
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5. A company's profit margin on sales was 2.50%, and its asset turnover was 0.50. What was the
return on assets?
A) 0.20%
B) 1.25%
C) 5.00%
D) 125.00%
Answer: B
Return on assets = Profit margin × Asset turnover = 2.5% × 0.50 = 1.25%.
6. Which value is used for the cost basis of a forklift that was acquired by the issuance of
common stock?
A) The par value of the stock
B) The book value of the stock
C) The market price of the stock
D) The original cost of the forklift
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WGU D104 OBJECTIVE ASSESSMENT V1 AND V2
EXAM LATEST UPDATE THIS YEAR (2026-2027) ALL
300 QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES
1. A steel manufacturer uses the production variable method for depreciating assets. Which
combination best describes the depreciation method used?
A) Straight-line and activity
B) Double-declining balance and activity
C) Straight-line and sum-of-years'-digits
D) Double-declining balance and sum-of-years'-digits
Answer: A
The production variable method combines straight-line depreciation with activity-based (units of
production) depreciation, where depreciation is calculated based on actual usage or output
rather than time.
1
, Page 2 of 187
2. A company invests $15,000,000 into a coal mine estimated to have 20 million tons of coal.
The mine is estimated to be in operation for the next five years. In Year 1, the company
extracted and sold 1 million tons of coal. How much is depletion in Year 1?
A) $750,000
B) $1,000,000
C) $2,250,000
D) $3,000,000
Answer: A
Depletion per ton = $15,000,,000,000 = $0.75 per ton. $0.75 × 1,000,000 tons extracted
= $750,000.
3. A company invested $15,000,000 in a coal mine estimated to have 1,500,000 tons of coal. In
the first year, the company extracted 100,000 tons. At the end of Year 1, it became clear that
the mine likely has only 700,000 tons remaining. Which depletion rate will be used starting in
Year 2?
A) $10.00 per ton
B) $15.00 per ton
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C) $20.00 per ton
D) $25.00 per ton
Answer: C
The remaining cost ($15,000,000) is divided by the revised remaining tons (700,000):
$15,000,,000 = $20.00 per ton.
4. A company reported total assets of $10,000,000 on December 31, 2018, and $14,000,000 on
December 31, 2019. Net sales revenue was $6,000,000 for 2018 and $8,000,000 for 2019. What
was the asset turnover ratio for 2019?
A) 0.50
B) 0.57
C) 0.60
D) 0.67
Answer: D
Asset turnover = Net sales / Average total assets. Average assets = ($10,000,000 + $14,000,000)
/ 2 = $12,000,000. $8,000,000 / $12,000,000 = 0.67.
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5. A company's profit margin on sales was 2.50%, and its asset turnover was 0.50. What was the
return on assets?
A) 0.20%
B) 1.25%
C) 5.00%
D) 125.00%
Answer: B
Return on assets = Profit margin × Asset turnover = 2.5% × 0.50 = 1.25%.
6. Which value is used for the cost basis of a forklift that was acquired by the issuance of
common stock?
A) The par value of the stock
B) The book value of the stock
C) The market price of the stock
D) The original cost of the forklift
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