WGU D196 QUESTIONS & ANSWERS 2026-2027 | LAT… EXAM
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU D196 Questions &
Answers 2026-2027 |
Latest Course
Questions
Verified Answers Exam Ready With Rationales
56 QUESTIONS
DOCUMENT OVERVIEW
This document contains 56 verified questions with correct answers provided, focusing on
financial accounting principles. It serves as a comprehensive resource for students seeking
to enhance their understanding of accounting standards and practices. The material is
suitable for study, review, and preparation for certification exams, ensuring a solid grasp of
essential accounting concepts.
CONTENTS
Financial Accounting Q1–Q14
Accounting Principles Q15–Q25
Managerial Accounting Q26–Q36
Budgeting and Forecasting Q37–Q46
Page 1
, Cost Accounting Q47–Q56
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 56
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's accounting information will decrease in value.
The company can report more favorable results in its financial statements.
The company's accounting information will increase in value.
CORRECT ANSWER
The company's accounting information will increase in value.
Q2 QUESTION 2 OF 56
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 item-by-item product cost information.
Financial statement data provide detailed internal budget information.
Financial statement data are often used in determining employee bonuses.
CORRECT ANSWER
Financial statement data are often used in determining employee bonuses.
Q3 QUESTION 3 OF 56
Which group establishes financial accounting rules in the United States?
American Institute of Certified Public Accountants (AICPA)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
Internal Revenue Service (IRS)
Page 2
, CORRECT ANSWER
Financial Accounting Standards Board (FASB)
Q4 QUESTION 4 OF 56
Which report is one of the three primary financial statements?
Statement of the accounting cycle
Statement of management accounting
Statement of cash flows
Statement of stakeholder funds
CORRECT ANSWER
Statement of cash flows
Q5 QUESTION 5 OF 56
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation?
Assets decrease by $5,000; expenses increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
Assets decrease by $5,000; liabilities increase by $5,000.
CORRECT ANSWER
Assets decrease by $5,000; expenses increase by $5,000.
Q6 QUESTION 6 OF 56
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; revenues increase by $80,000.
Page 3
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
WGU D196 Questions &
Answers 2026-2027 |
Latest Course
Questions
Verified Answers Exam Ready With Rationales
56 QUESTIONS
DOCUMENT OVERVIEW
This document contains 56 verified questions with correct answers provided, focusing on
financial accounting principles. It serves as a comprehensive resource for students seeking
to enhance their understanding of accounting standards and practices. The material is
suitable for study, review, and preparation for certification exams, ensuring a solid grasp of
essential accounting concepts.
CONTENTS
Financial Accounting Q1–Q14
Accounting Principles Q15–Q25
Managerial Accounting Q26–Q36
Budgeting and Forecasting Q37–Q46
Page 1
, Cost Accounting Q47–Q56
E XA M Q U EST I O N S
Q1 QUESTION 1 OF 56
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's accounting information will decrease in value.
The company can report more favorable results in its financial statements.
The company's accounting information will increase in value.
CORRECT ANSWER
The company's accounting information will increase in value.
Q2 QUESTION 2 OF 56
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 item-by-item product cost information.
Financial statement data provide detailed internal budget information.
Financial statement data are often used in determining employee bonuses.
CORRECT ANSWER
Financial statement data are often used in determining employee bonuses.
Q3 QUESTION 3 OF 56
Which group establishes financial accounting rules in the United States?
American Institute of Certified Public Accountants (AICPA)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
Internal Revenue Service (IRS)
Page 2
, CORRECT ANSWER
Financial Accounting Standards Board (FASB)
Q4 QUESTION 4 OF 56
Which report is one of the three primary financial statements?
Statement of the accounting cycle
Statement of management accounting
Statement of cash flows
Statement of stakeholder funds
CORRECT ANSWER
Statement of cash flows
Q5 QUESTION 5 OF 56
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation?
Assets decrease by $5,000; expenses increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
Assets decrease by $5,000; liabilities increase by $5,000.
CORRECT ANSWER
Assets decrease by $5,000; expenses increase by $5,000.
Q6 QUESTION 6 OF 56
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; owners' equity increases by $80,000.
Assets increase by $80,000; liabilities decrease by $80,000.
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; revenues increase by $80,000.
Page 3
