WGU D196
WGU D196 TEST QUESTIONS WITH 100%
VERIFIED
CORRECT ANSWERS 2026/2027
1.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
2.Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - ANSWER -c
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
WGU D196 TEST QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS 2026-2027
,WGU D196
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
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
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
7. Whose job is it to make sure that investors are provided
with full and fair information about publicly traded
companies?
FASB
WGU D196 TEST QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS 2026-2027
,WGU D196
AICPA
IASB
SEC - ANSWER -d
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
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
WGU D196 TEST QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS 2026-2027
, WGU D196
d. Direct costs should not be included in the performance
evaluation measure of a profit center manager - ANSWER -c
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
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
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
13. If overhead is underapplied, which statement is true?
a.Actual costs exceed applied costs
WGU D196 TEST QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS 2026-2027
WGU D196 TEST QUESTIONS WITH 100%
VERIFIED
CORRECT ANSWERS 2026/2027
1.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
2.Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - ANSWER -c
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
WGU D196 TEST QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS 2026-2027
,WGU D196
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
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
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
7. Whose job is it to make sure that investors are provided
with full and fair information about publicly traded
companies?
FASB
WGU D196 TEST QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS 2026-2027
,WGU D196
AICPA
IASB
SEC - ANSWER -d
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
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
WGU D196 TEST QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS 2026-2027
, WGU D196
d. Direct costs should not be included in the performance
evaluation measure of a profit center manager - ANSWER -c
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
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
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
13. If overhead is underapplied, which statement is true?
a.Actual costs exceed applied costs
WGU D196 TEST QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS 2026-2027
