WGU D196 PRINCIPLES OF FINANCIAL AND
MANAGERIAL ACCOUNTING final EXAM
2025/2026 BANK 2 VERSIONS QUESTIONS AND
ACCURATE ACTUAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND STUDY
GUIDE / EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation
of the borrowing company?
-Expenses decrease owners' equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity. -
....ANSWER...Expenses decrease owners' equity.
What is the impact of expenses on the accounting
equation?
-Expenses decrease owners' equity.
,-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity. -
....ANSWER...Expenses decrease owners' equity.
Which type of account are accounts payable and notes
payable both examples of?
-Asset
-Equity
-Expense
-Liability - ....ANSWER...Liability
What is the purpose of the financial accounting cycle?
-To turn information about transactions into financial
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 - ....ANSWER...To turn information
about transactions into financial statements
According to the accounting equation, the amount of
liabilities and equity must always be equal to another
amount.
What is that other amount?
-Cash
-The sum of expenses and dividends
-Assets
-The sum of revenues and expenses - ....ANSWER...Assets
Which item is an expense item?
-Accounts receivable
-Accounts payable
-Cost of goods sold
-Loans payable - ....ANSWER...Cost of goods sold
What is an example of direct materials?
Cost of robotic equipment in making automobiles
, Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane -
....ANSWER...Cost of aluminum in making an airplane
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 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. - ....ANSWER...The company's accounting
information will increase in value.
Why might employees be interested in their company's
financial accounting information?
Financial statement data are used to record long term
liabilities.
MANAGERIAL ACCOUNTING final EXAM
2025/2026 BANK 2 VERSIONS QUESTIONS AND
ACCURATE ACTUAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND STUDY
GUIDE / EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation
of the borrowing company?
-Expenses decrease owners' equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity. -
....ANSWER...Expenses decrease owners' equity.
What is the impact of expenses on the accounting
equation?
-Expenses decrease owners' equity.
,-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity. -
....ANSWER...Expenses decrease owners' equity.
Which type of account are accounts payable and notes
payable both examples of?
-Asset
-Equity
-Expense
-Liability - ....ANSWER...Liability
What is the purpose of the financial accounting cycle?
-To turn information about transactions into financial
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 - ....ANSWER...To turn information
about transactions into financial statements
According to the accounting equation, the amount of
liabilities and equity must always be equal to another
amount.
What is that other amount?
-Cash
-The sum of expenses and dividends
-Assets
-The sum of revenues and expenses - ....ANSWER...Assets
Which item is an expense item?
-Accounts receivable
-Accounts payable
-Cost of goods sold
-Loans payable - ....ANSWER...Cost of goods sold
What is an example of direct materials?
Cost of robotic equipment in making automobiles
, Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane -
....ANSWER...Cost of aluminum in making an airplane
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 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. - ....ANSWER...The company's accounting
information will increase in value.
Why might employees be interested in their company's
financial accounting information?
Financial statement data are used to record long term
liabilities.
