WGU D196 OA AND PRE ASSESSMENT EXAM 2025
LATEST FALL-SPRING TERM |ALREADY GRADED A+
COMPLETE QUESTION AND ANSWER
Which action would make the profitability of the company in 20X9 the same as in 20X7?
Increasing the proportion of gross profit to sales by about 2%
Paying back interest expenses earlier in the year
Decreasing the proportion of operating income to sales by about 2%
Increasing the operating expenses by about $20,000
Increasing the proportion of gross profit to sales by about 2%
Managing Cash Flow
Why is the net cash for December negative while total sales for December are the highest out
of the months from October through December?
December general and administrative expenses are expected to be much higher.
Credit sales are disproportionately low wiith respect to total sales compared to other
months.
December cash use is disproportionally high with respect to total sales compared to other
months.
Total cash available does not reflect December sales because there was a high volume of
credit sales.
Total cash available does not reflect December sales because there was a high volume of credit
sales.
,How can Whole Pine avoid having negative net cash flows in December?
Postpone purchasing the new equipment and do not pay cash dividends to shareholders.
Promote cash sales with the goal of having $230,000 in cash sales and only $210,000 in credit
sales.
Instead of paying for credit purchases of inventory a month after the purchase, pay two
months after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the month following
the credit sales.
You Selected
Promote cash sales with the goal of having $230,000 in cash sales and only $210,000 in credit
sales.
Instead of paying for credit purchases of inventory a month after the purchase, pay two
months after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the month following
the credit sales.
Postpone purchasing the new equipment and do not pay cash dividends to shareholders.
What is an example of a financial cost that would result from poor direct labor budgeting and
planning?
Delayed cash collections from credit customers
Excessive inventory storage costs
Increased hiring, training, and overtime costs
Increased depreciation costs for facilities
Increased hiring, training, and overtime costs
What does a manager have control over in a cost center?
Revenues
Dividends
Assets
Costs
Costs
,What should be considered when developing a measure to evaluate the performance of a
manager?
Only centralized costs
Only indirect costs
Only noncontrollable costs
Only controllable costs
Only controllable costs
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?
Direct costs should not be included in the performance evaluation measure of a profit center
manager.
Uncontrollable costs should not be included in the performance evaluation measure of a
profit center manager.
Revenues should not be included in the performance evaluation measure of a profit center
manager.
Controllable costs should not be included in the performance evaluation measure of a profit
center manager.
Uncontrollable costs should not be included in the performance evaluation measure of a profit
center manager.
Which budget should include the expected cost of supplies used by the office staff of the
corporate headquarters?
Sales budget
Direct materials budget
Production budget
Administrative expense budget
Administrative expense budget
Which items are uncontrollable, external variables that make it difficult to forecast the level
of sales?
Selling price and sales effort
Customer tastes and economic conditions
Customer tastes and economic conditions
, What is the correct sequence of budgets in a manufacturing business?
Sales, direct materials, production
Direct materials, sales, production
Production, direct materials, sales
Sales, production, direct materials
Sales, production, direct materials
What is a transaction?
Two parties exchanging something of value
A type of commonly used accounting software
A category of merchandiser or retailer
An example of an online business document
Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $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.
Assets increase by $80,000; liabilities increase by $80,000.
What is the impact of expenses on the accounting equation?
Expenses decrease liabilities.
Expenses increase liabilities.
Expenses decrease owners' equity.
Expenses increase owners' equity.
Expenses decrease owners' equity.
LATEST FALL-SPRING TERM |ALREADY GRADED A+
COMPLETE QUESTION AND ANSWER
Which action would make the profitability of the company in 20X9 the same as in 20X7?
Increasing the proportion of gross profit to sales by about 2%
Paying back interest expenses earlier in the year
Decreasing the proportion of operating income to sales by about 2%
Increasing the operating expenses by about $20,000
Increasing the proportion of gross profit to sales by about 2%
Managing Cash Flow
Why is the net cash for December negative while total sales for December are the highest out
of the months from October through December?
December general and administrative expenses are expected to be much higher.
Credit sales are disproportionately low wiith respect to total sales compared to other
months.
December cash use is disproportionally high with respect to total sales compared to other
months.
Total cash available does not reflect December sales because there was a high volume of
credit sales.
Total cash available does not reflect December sales because there was a high volume of credit
sales.
,How can Whole Pine avoid having negative net cash flows in December?
Postpone purchasing the new equipment and do not pay cash dividends to shareholders.
Promote cash sales with the goal of having $230,000 in cash sales and only $210,000 in credit
sales.
Instead of paying for credit purchases of inventory a month after the purchase, pay two
months after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the month following
the credit sales.
You Selected
Promote cash sales with the goal of having $230,000 in cash sales and only $210,000 in credit
sales.
Instead of paying for credit purchases of inventory a month after the purchase, pay two
months after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the month following
the credit sales.
Postpone purchasing the new equipment and do not pay cash dividends to shareholders.
What is an example of a financial cost that would result from poor direct labor budgeting and
planning?
Delayed cash collections from credit customers
Excessive inventory storage costs
Increased hiring, training, and overtime costs
Increased depreciation costs for facilities
Increased hiring, training, and overtime costs
What does a manager have control over in a cost center?
Revenues
Dividends
Assets
Costs
Costs
,What should be considered when developing a measure to evaluate the performance of a
manager?
Only centralized costs
Only indirect costs
Only noncontrollable costs
Only controllable costs
Only controllable costs
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?
Direct costs should not be included in the performance evaluation measure of a profit center
manager.
Uncontrollable costs should not be included in the performance evaluation measure of a
profit center manager.
Revenues should not be included in the performance evaluation measure of a profit center
manager.
Controllable costs should not be included in the performance evaluation measure of a profit
center manager.
Uncontrollable costs should not be included in the performance evaluation measure of a profit
center manager.
Which budget should include the expected cost of supplies used by the office staff of the
corporate headquarters?
Sales budget
Direct materials budget
Production budget
Administrative expense budget
Administrative expense budget
Which items are uncontrollable, external variables that make it difficult to forecast the level
of sales?
Selling price and sales effort
Customer tastes and economic conditions
Customer tastes and economic conditions
, What is the correct sequence of budgets in a manufacturing business?
Sales, direct materials, production
Direct materials, sales, production
Production, direct materials, sales
Sales, production, direct materials
Sales, production, direct materials
What is a transaction?
Two parties exchanging something of value
A type of commonly used accounting software
A category of merchandiser or retailer
An example of an online business document
Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $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.
Assets increase by $80,000; liabilities increase by $80,000.
What is the impact of expenses on the accounting equation?
Expenses decrease liabilities.
Expenses increase liabilities.
Expenses decrease owners' equity.
Expenses increase owners' equity.
Expenses decrease owners' equity.
