WGU D196 Questions with Correct Answers (Grade A+)
Question 1: Absolute Cell Reference
Answer: A cell reference that remains constant when a formula is pasted into a new cell.
Question 2: Account
Answer: An accounting record in which the results of transactions are accumulated; shows increases,
decreases, and a balance.
Question 3: Accounting
Answer: A system for providing quantitative, financial information about economic entities that is useful for
making sound economic decisions. Accounting provides the means of recording and communicating
business activities and the results of those activities.
Question 4: Accounting Cycle
Answer: The procedure for analyzing, recording, summarizing, and reporting the transactions of a business.
Question 5: Accounting Equation
Answer: An algebraic equation that expresses the relationship between assets (resources), liabilities
(obligations), and owner's equity (net assets, or the residual interest in a business after all liabilities have
been met): Assets = Liabilities + Owners' Equity.
Question 6: Accounting System
Answer: The procedures and processes used by a business to analyze transactions, handle routine
bookkeeping tasks, and structure information so it can be used to evaluate the performance and health of the
business.
Question 7: Activity-based Costing (ABC)
Answer: A method of attributing overhead costs to products based on measurable factors that relate to
activities that create overhead costs.
Question 8: Actual Manufacturing Overhead
Answer: Manufacturing costs other than direct materials and direct labor.
Question 9: American Institute of Certified Public Accountants (AICPA)
Answer: A professional organization for CPAs in which membership is voluntary.
Page 1
,Question 10: Annual Report
Answer: A document that summarizes the results of operations and financial status of a company for the
past year and outlines future plans.
Question 11: Applied Manufacturing Overhead
Answer: The amount of the manufacturing overhead that is assigned to the goods produced. This is usually
done by using a predetermined annual overhead rate.
Question 12: Arm's-length Transaction
Answer: A transaction in which a buyer and seller act independently to get the best possible deal.
Question 13: Articulation
Answer: The interrelationships among the financial statements.
Question 14: Assets
Answer: Economic resources that are owned or controlled by a company.
Question 15: Balance Sheet
Answer: A summary of the financial position of a company at a particular date.
Question 16: Batch-level Activities
Answer: Activities that take place in order to support a batch or production run, regardless of the size of the
batch.
Question 17: Book Value
Answer: The value of a company measured by the amount of owner's equity in the company.
Question 18: Break Even
Answer: To make just enough income to cover costs without any profit or loss.
Question 19: Break-even Point
Answer: The amount of sales at which total costs of the number of units sold equal total revenues; the point
at which there is no profit or loss.
Page 2
, Question 20: Budget
Answer: A quantitative expression of a plan that shows how a firm or organization will acquire and use
resources over some specified period of time.
Question 21: Business
Answer: An organization operated with the objective of making a profit from the sale of goods or services.
Question 22: Business Documents
Answer: Records of transactions used as the basis for recording accounting entries; include invoices, check
stubs, receipts, and similar business papers.
Question 23: Capital Budgeting
Answer: Systematic planning for long-term investments in operating assets.
Question 24: Capital Stock
Answer: The portion of stockholder's equity that represents investment by owners in exchange for shares of
stock; also referred to as paid-in capital.
Question 25: Cash Budget
Answer: A short-term schedule of expected cash inflows and outflows during a period of time.
Question 26: Certified Public Accountant (CPA)
Answer: An accountant who has met specified professional requirements established by the AICPA and
local and state societies. A key service provided by CPAs is the performance of independent audits of
financial statements.
Question 27: Classified Balance Sheet
Answer: A balance sheet that distinguishes between current and long-term assets.
Question 28: Comparative Financial Statements
Answer: Financial statements that include information for both the current year and preceding year(s) that
are prepared for users to identify any significant changes in particular items.
Question 29: Contribution Margin
Answer: The difference between total sales and variable costs; the portion of sales revenue available to
cover fixed costs and provide a profit.
Page 3
Question 1: Absolute Cell Reference
Answer: A cell reference that remains constant when a formula is pasted into a new cell.
Question 2: Account
Answer: An accounting record in which the results of transactions are accumulated; shows increases,
decreases, and a balance.
Question 3: Accounting
Answer: A system for providing quantitative, financial information about economic entities that is useful for
making sound economic decisions. Accounting provides the means of recording and communicating
business activities and the results of those activities.
Question 4: Accounting Cycle
Answer: The procedure for analyzing, recording, summarizing, and reporting the transactions of a business.
Question 5: Accounting Equation
Answer: An algebraic equation that expresses the relationship between assets (resources), liabilities
(obligations), and owner's equity (net assets, or the residual interest in a business after all liabilities have
been met): Assets = Liabilities + Owners' Equity.
Question 6: Accounting System
Answer: The procedures and processes used by a business to analyze transactions, handle routine
bookkeeping tasks, and structure information so it can be used to evaluate the performance and health of the
business.
Question 7: Activity-based Costing (ABC)
Answer: A method of attributing overhead costs to products based on measurable factors that relate to
activities that create overhead costs.
Question 8: Actual Manufacturing Overhead
Answer: Manufacturing costs other than direct materials and direct labor.
Question 9: American Institute of Certified Public Accountants (AICPA)
Answer: A professional organization for CPAs in which membership is voluntary.
Page 1
,Question 10: Annual Report
Answer: A document that summarizes the results of operations and financial status of a company for the
past year and outlines future plans.
Question 11: Applied Manufacturing Overhead
Answer: The amount of the manufacturing overhead that is assigned to the goods produced. This is usually
done by using a predetermined annual overhead rate.
Question 12: Arm's-length Transaction
Answer: A transaction in which a buyer and seller act independently to get the best possible deal.
Question 13: Articulation
Answer: The interrelationships among the financial statements.
Question 14: Assets
Answer: Economic resources that are owned or controlled by a company.
Question 15: Balance Sheet
Answer: A summary of the financial position of a company at a particular date.
Question 16: Batch-level Activities
Answer: Activities that take place in order to support a batch or production run, regardless of the size of the
batch.
Question 17: Book Value
Answer: The value of a company measured by the amount of owner's equity in the company.
Question 18: Break Even
Answer: To make just enough income to cover costs without any profit or loss.
Question 19: Break-even Point
Answer: The amount of sales at which total costs of the number of units sold equal total revenues; the point
at which there is no profit or loss.
Page 2
, Question 20: Budget
Answer: A quantitative expression of a plan that shows how a firm or organization will acquire and use
resources over some specified period of time.
Question 21: Business
Answer: An organization operated with the objective of making a profit from the sale of goods or services.
Question 22: Business Documents
Answer: Records of transactions used as the basis for recording accounting entries; include invoices, check
stubs, receipts, and similar business papers.
Question 23: Capital Budgeting
Answer: Systematic planning for long-term investments in operating assets.
Question 24: Capital Stock
Answer: The portion of stockholder's equity that represents investment by owners in exchange for shares of
stock; also referred to as paid-in capital.
Question 25: Cash Budget
Answer: A short-term schedule of expected cash inflows and outflows during a period of time.
Question 26: Certified Public Accountant (CPA)
Answer: An accountant who has met specified professional requirements established by the AICPA and
local and state societies. A key service provided by CPAs is the performance of independent audits of
financial statements.
Question 27: Classified Balance Sheet
Answer: A balance sheet that distinguishes between current and long-term assets.
Question 28: Comparative Financial Statements
Answer: Financial statements that include information for both the current year and preceding year(s) that
are prepared for users to identify any significant changes in particular items.
Question 29: Contribution Margin
Answer: The difference between total sales and variable costs; the portion of sales revenue available to
cover fixed costs and provide a profit.
Page 3
