WGU D196 OA AND PRE ASSESSMENT EXAM ACTUAL EXAM
wgu d196 pre assessment
VERSIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
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ANSWERS) /ALREADY GRADED A+
1. What is an example of direct materials? Cost of aluminum in mak-
Cost of robotic equipment in making automobiles ing an airplane
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
2. What is the effect of a company's accounting depart- The company's accounting
ment maintaining high ethical standards? information will increase
The company can hire fewer accountants to do the in value.
same amount of work.
The company can report more favorable results in its
financial statements.
The company's accounting information will increase in
value.
The company's accounting information will decrease
in value.
3. Why might employees be interested in their compa- Financial statement data
ny's financial accounting information? are often used in deter-
Financial statement data are used to record long term mining employee bonus-
liabilities. es.
Financial statement data are often used in determin-
ing employee bonuses.
Financial statement data provide item-by-item product
cost information.
Financial statement data provide detailed internal
budget information.
4. Which group establishes financial accounting rules in Financial Accounting Stan-
the United States? dards Board (FASB)
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
, wgu d196 pre assessment
Study online at https://quizlet.com/_91asp3
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants
(AICPA)
5. Which report is one of the three primary financial Statement of cash flows
statements?
Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
Statement of cash flows
6. A company paid $5,000 cash in advertising costs. Assets decrease by $5,000;
How does this transaction affect the paying company's expenses increase by
accounting equation? $5,000.
Assets decrease by $5,000; liabilities increase by
$5,000.
Assets increase by $5,000; expenses increase by
$5,000.
Assets decrease by $5,000; expenses increase by
$5,000.
Assets decrease by $5,000; revenues increase by
$5,000.
7. What is a transaction? Two parties exchanging
Two parties exchanging something of value something of value
A type of commonly used accounting software
A category of merchandiser or retailer
An example of an online business document
8. A company borrowed $80,000 cash from a bank. Assets increase by
How does this transaction affect the accounting equa- $80,000; liabilities in-
tion of the borrowing company? crease by $80,000.
Assets increase by $80,000; liabilities increase by
, wgu d196 pre assessment
Study online at https://quizlet.com/_91asp3
$80,000.
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; revenues increase by
$80,000.
9. What is the impact of expenses on the accounting Expenses decrease own-
equation? ers' equity.
Expenses decrease liabilities.
Expenses increase liabilities.
Expenses decrease owners' equity.
Expenses increase owners' equity.
10. Which type of account are accounts payable and notes Liability
payable both examples of?
Liability
Expense
Asset
Equity
11. What is the purpose of the financial accounting cycle? To turn information about
transactions into financial
To turn information about transactions into financial statements
statements
To gather information related to the expenses and
income generated by a company
To produce and analyze a company's monthly bank
statement
To collect confidential information for management to
use as a competitive tool
wgu d196 pre assessment
VERSIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
Study online at https://quizlet.com/_91asp3
ANSWERS) /ALREADY GRADED A+
1. What is an example of direct materials? Cost of aluminum in mak-
Cost of robotic equipment in making automobiles ing an airplane
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
2. What is the effect of a company's accounting depart- The company's accounting
ment maintaining high ethical standards? information will increase
The company can hire fewer accountants to do the in value.
same amount of work.
The company can report more favorable results in its
financial statements.
The company's accounting information will increase in
value.
The company's accounting information will decrease
in value.
3. Why might employees be interested in their compa- Financial statement data
ny's financial accounting information? are often used in deter-
Financial statement data are used to record long term mining employee bonus-
liabilities. es.
Financial statement data are often used in determin-
ing employee bonuses.
Financial statement data provide item-by-item product
cost information.
Financial statement data provide detailed internal
budget information.
4. Which group establishes financial accounting rules in Financial Accounting Stan-
the United States? dards Board (FASB)
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
, wgu d196 pre assessment
Study online at https://quizlet.com/_91asp3
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants
(AICPA)
5. Which report is one of the three primary financial Statement of cash flows
statements?
Statement of management accounting
Statement of the accounting cycle
Statement of stakeholder funds
Statement of cash flows
6. A company paid $5,000 cash in advertising costs. Assets decrease by $5,000;
How does this transaction affect the paying company's expenses increase by
accounting equation? $5,000.
Assets decrease by $5,000; liabilities increase by
$5,000.
Assets increase by $5,000; expenses increase by
$5,000.
Assets decrease by $5,000; expenses increase by
$5,000.
Assets decrease by $5,000; revenues increase by
$5,000.
7. What is a transaction? Two parties exchanging
Two parties exchanging something of value something of value
A type of commonly used accounting software
A category of merchandiser or retailer
An example of an online business document
8. A company borrowed $80,000 cash from a bank. Assets increase by
How does this transaction affect the accounting equa- $80,000; liabilities in-
tion of the borrowing company? crease by $80,000.
Assets increase by $80,000; liabilities increase by
, wgu d196 pre assessment
Study online at https://quizlet.com/_91asp3
$80,000.
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; revenues increase by
$80,000.
9. What is the impact of expenses on the accounting Expenses decrease own-
equation? ers' equity.
Expenses decrease liabilities.
Expenses increase liabilities.
Expenses decrease owners' equity.
Expenses increase owners' equity.
10. Which type of account are accounts payable and notes Liability
payable both examples of?
Liability
Expense
Asset
Equity
11. What is the purpose of the financial accounting cycle? To turn information about
transactions into financial
To turn information about transactions into financial statements
statements
To gather information related to the expenses and
income generated by a company
To produce and analyze a company's monthly bank
statement
To collect confidential information for management to
use as a competitive tool
