WGU D311 ACCOUNTING LATEST
EXAM WITH DETAILED QUESTIONS
AND CORRECT ANSWERS
Question-1. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - Answer-c
Question-2. 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 - Answer-c
Question-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 - Answer-B
Question-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 - Answer-c
Question-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 - Answer-d
Question-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 - Answer-d
Question-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 - Answer-d
Question-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 - Answer-a
,Question-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 - Answer-c
Question-10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product - Answer-d
Question-11. Which label is given to the cost of wages for factory supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses - Answer-c
Question-12. A company reports the following data: Price per unit = $20 Variable costs per unit
= $12 Fixed costs = $12,000 Given these data, what is the variable cost ratio?
a. 40%
b. 25%
c. 16%
d. 60% - Answer-d
, Question-13. If overhead is underapplied, which statement is true?
a.Actual costs exceed applied costs
b.Applied costs exceed actual costs
c.Costs will not be affected
d. Budgeted and applied costs will be equal - Answer-a
Question-14. Which of the following is not an example of a cost driver?
a.Miles driven
b.Selling costs
c.Machine hours
d. Number of customers - Answer-b
Question-15. Which item is a period cost?
Manufacturing supplies
Overhead directly tied to the production facility
Raw materials
Marketing expense - Answer-d
Question-16. Which overhead allocation method should be used for a trash bag manufacturer?
a. Product-line costing
b. Process costing
c. ABC costing
d . Job order costing - Answer-b
Question-17. For relevant range, which costs are approximately linear within a certain range of
production?
EXAM WITH DETAILED QUESTIONS
AND CORRECT ANSWERS
Question-1. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - Answer-c
Question-2. 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 - Answer-c
Question-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 - Answer-B
Question-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 - Answer-c
Question-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 - Answer-d
Question-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 - Answer-d
Question-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 - Answer-d
Question-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 - Answer-a
,Question-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 - Answer-c
Question-10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product - Answer-d
Question-11. Which label is given to the cost of wages for factory supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses - Answer-c
Question-12. A company reports the following data: Price per unit = $20 Variable costs per unit
= $12 Fixed costs = $12,000 Given these data, what is the variable cost ratio?
a. 40%
b. 25%
c. 16%
d. 60% - Answer-d
, Question-13. If overhead is underapplied, which statement is true?
a.Actual costs exceed applied costs
b.Applied costs exceed actual costs
c.Costs will not be affected
d. Budgeted and applied costs will be equal - Answer-a
Question-14. Which of the following is not an example of a cost driver?
a.Miles driven
b.Selling costs
c.Machine hours
d. Number of customers - Answer-b
Question-15. Which item is a period cost?
Manufacturing supplies
Overhead directly tied to the production facility
Raw materials
Marketing expense - Answer-d
Question-16. Which overhead allocation method should be used for a trash bag manufacturer?
a. Product-line costing
b. Process costing
c. ABC costing
d . Job order costing - Answer-b
Question-17. For relevant range, which costs are approximately linear within a certain range of
production?
