WGU D196 Pre
Assessment
Question Bank
2025
LatestUpdated
Questions
,WGU D196
1. Which budget should include all production costs other than those
for direct materials and direct labor?
A.Sales budget
B.Direct materials budget
C.Manufacturing overhead budget
D. Production budget - Correct Answer -c
2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - Correct Answer -c
3 .On which financial statement would you see the valuation of a
company's asset accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - Correct Answer -B
,4. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions - Correct Answer -c
5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements - Correct Answer -d
6. On which financial statement would you see cash flows from
financing activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - Correct Answer -d
7. Whose job is it to make sure that investors are provided with full
and fair information about publicly traded companies?
FASB
AICPA
, IASB
SEC - Correct Answer -d
8. How does a classified balance sheet provide useful information to
a decision maker?
a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time -
Correct Answer -a
9. In some companies, the performance measures for profit center
managers are heavily influenced by cost allocations downward from
organizational units (such as company headquarters). Why is this a
mistake?
a.Controllable costs should not be included in the performance
evaluation measure of a profit center manager
b.Revenues should not be included in the performance evaluation
measure of a profit center manager
c.Uncontrollable costs should not be included in the performance
evaluation measure of a profit center manager
d. Direct costs should not be included in the performance evaluation
measure of a profit center manager - Correct Answer -c
10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
Assessment
Question Bank
2025
LatestUpdated
Questions
,WGU D196
1. Which budget should include all production costs other than those
for direct materials and direct labor?
A.Sales budget
B.Direct materials budget
C.Manufacturing overhead budget
D. Production budget - Correct Answer -c
2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - Correct Answer -c
3 .On which financial statement would you see the valuation of a
company's asset accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - Correct Answer -B
,4. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions - Correct Answer -c
5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements - Correct Answer -d
6. On which financial statement would you see cash flows from
financing activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - Correct Answer -d
7. Whose job is it to make sure that investors are provided with full
and fair information about publicly traded companies?
FASB
AICPA
, IASB
SEC - Correct Answer -d
8. How does a classified balance sheet provide useful information to
a decision maker?
a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time -
Correct Answer -a
9. In some companies, the performance measures for profit center
managers are heavily influenced by cost allocations downward from
organizational units (such as company headquarters). Why is this a
mistake?
a.Controllable costs should not be included in the performance
evaluation measure of a profit center manager
b.Revenues should not be included in the performance evaluation
measure of a profit center manager
c.Uncontrollable costs should not be included in the performance
evaluation measure of a profit center manager
d. Direct costs should not be included in the performance evaluation
measure of a profit center manager - Correct Answer -c
10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
