WGU D196 pre assessment Actual Exam
2025 WGU D196 Pre Assessment Exam
Latest Update 2025 Questions and Correct
Answers Rated A+
Which type of account are accounts payable and notes payable both
examples of?
Liability
Expense
Asset
Equity -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?
The sum of expenses and dividends
Cash
Assets
The sum of revenues and expenses -Answer-Assets
,Which item is an expense item?
Cost of goods sold
Loans payable
Accounts receivable
Accounts payable -Answer-Cost of goods sold
How is gross profit computed?
Total revenues minus total expenses
Sales minus cost of goods sold
Accounts receivable minus accounts payable
Total assets minus total liabilities -Answer-Sales minus cost of goods
sold
Which type of account is retained earnings?
Revenue
Asset
Equity
Liability -Answer-Equity
For purposes of cash flow classification in the statement of cash flows,
which item is an operating activity?
Buying equipment
Selling bonds
Distributing dividends
Paying employees -Answer-Paying employees
How does a classified balance sheet provide useful information to a
decision maker?
It distinguishes between current and long-term assets.
,It provides data for a period of time instead of as a point in time.
It distinguishes liabilities from expenses.
It provides data that are not publicly disclosed. -Answer-It
distinguishes between current and long-term assets.
What information does a balance sheet provide to a decision maker?
Summary of the operating performance of a company during a period
Summary of the financial position of a company at a particular date
Summary of the cash flows of a company during a period
Summary of the operating performance of a company at a particular
date -Answer-Summary of the financial position of a company at a
particular date
What is an account payable?
The amount owed by a company that purchased goods or services
from a supplier on credit
The amount owed to a company that sold goods or services to a
customer on credit
The amount to be paid by a company in repayment of both loans and
dividends
The amount to be paid by a company for dividends to shareholders -
Answer-The amount owed by a company that purchased goods or
services from a supplier on credit
Horizontal and Vertical Analysis -Answer-
Based on your analysis, what should management be concerned
about?
The increase in interest expenses over the past two years
The increase in operating expenses over the past two years
The increase in income taxes over the past two years
, The increase in production cost over the past two years -Answer-The
increase in operating expenses over the past two years
You Selected
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 -Answer-
Increasing the proportion of gross profit to sales by about 2%
Managing Cash Flow -Answer-
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. -Answer-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?
2025 WGU D196 Pre Assessment Exam
Latest Update 2025 Questions and Correct
Answers Rated A+
Which type of account are accounts payable and notes payable both
examples of?
Liability
Expense
Asset
Equity -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?
The sum of expenses and dividends
Cash
Assets
The sum of revenues and expenses -Answer-Assets
,Which item is an expense item?
Cost of goods sold
Loans payable
Accounts receivable
Accounts payable -Answer-Cost of goods sold
How is gross profit computed?
Total revenues minus total expenses
Sales minus cost of goods sold
Accounts receivable minus accounts payable
Total assets minus total liabilities -Answer-Sales minus cost of goods
sold
Which type of account is retained earnings?
Revenue
Asset
Equity
Liability -Answer-Equity
For purposes of cash flow classification in the statement of cash flows,
which item is an operating activity?
Buying equipment
Selling bonds
Distributing dividends
Paying employees -Answer-Paying employees
How does a classified balance sheet provide useful information to a
decision maker?
It distinguishes between current and long-term assets.
,It provides data for a period of time instead of as a point in time.
It distinguishes liabilities from expenses.
It provides data that are not publicly disclosed. -Answer-It
distinguishes between current and long-term assets.
What information does a balance sheet provide to a decision maker?
Summary of the operating performance of a company during a period
Summary of the financial position of a company at a particular date
Summary of the cash flows of a company during a period
Summary of the operating performance of a company at a particular
date -Answer-Summary of the financial position of a company at a
particular date
What is an account payable?
The amount owed by a company that purchased goods or services
from a supplier on credit
The amount owed to a company that sold goods or services to a
customer on credit
The amount to be paid by a company in repayment of both loans and
dividends
The amount to be paid by a company for dividends to shareholders -
Answer-The amount owed by a company that purchased goods or
services from a supplier on credit
Horizontal and Vertical Analysis -Answer-
Based on your analysis, what should management be concerned
about?
The increase in interest expenses over the past two years
The increase in operating expenses over the past two years
The increase in income taxes over the past two years
, The increase in production cost over the past two years -Answer-The
increase in operating expenses over the past two years
You Selected
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 -Answer-
Increasing the proportion of gross profit to sales by about 2%
Managing Cash Flow -Answer-
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. -Answer-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?
