WGU D196 WGU D196
Study online at https://quizlet.com/_ee48dc
1. 1. Which budget should include all production costs c
other than those for direct materials and direct labor?
A.Sales budget
B.Direct materials budget
C.Manufacturing overhead budget
D. Production budget
2. 2. Which account is a common asset account? c
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense
3. 3 .On which financial statement would you see the B
valuation of a company's asset accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings
4. 4. What is the final step in the accounting cycle? c
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions
5. 5. Which of the following is not an example of a trans- d
action?
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
2025/2026
, WGU D196 WGU D196
Study online at https://quizlet.com/_ee48dc
6. 6. On which financial statement would you see cash d
flows from financing activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings
7. 7. Whose job is it to make sure that investors are d
provided with full and fair information about publicly
traded companies?
FASB
AICPA
IASB
SEC
8. 8. How does a classified balance sheet provide useful a
information to a decision maker?
a.It distinguishes between current and long-term as-
sets
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
9. 9. In some companies, the performance measures for c
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 perfor-
2025/2026
, WGU D196 WGU D196
Study online at https://quizlet.com/_ee48dc
mance evaluation measure of a profit center manag-
er
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 perfor-
mance evaluation measure of a profit center manager
10. 10. Which is an example of a product cost? d
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product
11. 11. Which label is given to the cost of wages for factory c
supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses
12. 12. A company reports the following data: Price per d
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%
13. 13. If overhead is underapplied, which statement is a
true?
a.Actual costs exceed applied costs
2025/2026
Study online at https://quizlet.com/_ee48dc
1. 1. Which budget should include all production costs c
other than those for direct materials and direct labor?
A.Sales budget
B.Direct materials budget
C.Manufacturing overhead budget
D. Production budget
2. 2. Which account is a common asset account? c
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense
3. 3 .On which financial statement would you see the B
valuation of a company's asset accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings
4. 4. What is the final step in the accounting cycle? c
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions
5. 5. Which of the following is not an example of a trans- d
action?
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
2025/2026
, WGU D196 WGU D196
Study online at https://quizlet.com/_ee48dc
6. 6. On which financial statement would you see cash d
flows from financing activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings
7. 7. Whose job is it to make sure that investors are d
provided with full and fair information about publicly
traded companies?
FASB
AICPA
IASB
SEC
8. 8. How does a classified balance sheet provide useful a
information to a decision maker?
a.It distinguishes between current and long-term as-
sets
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
9. 9. In some companies, the performance measures for c
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 perfor-
2025/2026
, WGU D196 WGU D196
Study online at https://quizlet.com/_ee48dc
mance evaluation measure of a profit center manag-
er
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 perfor-
mance evaluation measure of a profit center manager
10. 10. Which is an example of a product cost? d
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product
11. 11. Which label is given to the cost of wages for factory c
supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses
12. 12. A company reports the following data: Price per d
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%
13. 13. If overhead is underapplied, which statement is a
true?
a.Actual costs exceed applied costs
2025/2026
