8/9/25, 12:06 AM WGU D196 Pre-Assessment (2025) (TESTING EXAM QUESTIONS) AND VERIFIED ANSWERS (MULTIPLE CHOICES) ||A+ GRA…
WGU D196 Pre-Assessment (2025) (TESTING EXAM
QUESTIONS) AND VERIFIED ANSWERS (MULTIPLE
CHOICES) ||A+ GRADED |100% CORRECT!!
What is a transaction? Two parties exchanging something of value
-Two parties exchanging
something of value
-An example of an
online business
document
-A type of commonly used
accounting software
-A category of merchandiser
or retailer
A company borrowed $80,000 Expenses decrease owners' equity.
cash from a bank.
How does this transaction
affect the accounting
equation of the borrowing
company?
-Expenses decrease owners'
equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners'
equity.
What is the impact of Expenses decrease owners' equity.
expenses on the accounting
equation?
-Expenses decrease owners'
equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners'
equity.
… 1/19
,8/9/25, 12:06 AM WGU D196 Pre-Assessment (2025) (TESTING EXAM QUESTIONS) AND VERIFIED ANSWERS (MULTIPLE CHOICES) ||A+ GRA…
Which type of account are Liability
accounts
payable and notes payable
both examples of?
-Asset
-Equity
-Expense
-Liability
What is the purpose of the To turn information about transactions into financial statements
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
According to the accounting Assets
equation, the amount of
liabilities and equity must
always be equal to another
amount.
What is that other amount?
-Cash
-The sum of expenses and
dividends
-Assets
-The sum of revenues and
expenses
Which item is an expense Cost of goods sold
item?
-Accounts receivable
-Accounts payable
-Cost of goods sold
… 2/19
, 8/9/25, 12:06 AM WGU D196 Pre-Assessment (2025) (TESTING EXAM QUESTIONS) AND VERIFIED ANSWERS (MULTIPLE CHOICES) ||A+ GRA…
-Loans payable
How is gross profit computed? Sales minus cost of goods sold
-Sales minus cost of goods
sold
-Total revenues minus total
expenses
-Accounts receivable minus
accounts payable
-Total assets minus total
liabilities
Which type of account is Equity
retained earnings?
-Liability
-Asset
-Equity
-Revenue
For purposes of cash flow Paying employees
classification in the
statement of cash flows,
which item is an operating
activity?
-Buying equipment
-Paying employees
-Distributing dividends
-Selling bonds
How does a classified balance It distinguishes between current and long-term assets.
sheet
provide useful
information to a decision
maker?
-It provides data for a
period of time instead of as
a point in time.
-It distinguishes between
current and long- term assets.
-It distinguishes liabilities from
expenses.
-It provides data that are not
publicly disclosed.
… 3/19
WGU D196 Pre-Assessment (2025) (TESTING EXAM
QUESTIONS) AND VERIFIED ANSWERS (MULTIPLE
CHOICES) ||A+ GRADED |100% CORRECT!!
What is a transaction? Two parties exchanging something of value
-Two parties exchanging
something of value
-An example of an
online business
document
-A type of commonly used
accounting software
-A category of merchandiser
or retailer
A company borrowed $80,000 Expenses decrease owners' equity.
cash from a bank.
How does this transaction
affect the accounting
equation of the borrowing
company?
-Expenses decrease owners'
equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners'
equity.
What is the impact of Expenses decrease owners' equity.
expenses on the accounting
equation?
-Expenses decrease owners'
equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners'
equity.
… 1/19
,8/9/25, 12:06 AM WGU D196 Pre-Assessment (2025) (TESTING EXAM QUESTIONS) AND VERIFIED ANSWERS (MULTIPLE CHOICES) ||A+ GRA…
Which type of account are Liability
accounts
payable and notes payable
both examples of?
-Asset
-Equity
-Expense
-Liability
What is the purpose of the To turn information about transactions into financial statements
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
According to the accounting Assets
equation, the amount of
liabilities and equity must
always be equal to another
amount.
What is that other amount?
-Cash
-The sum of expenses and
dividends
-Assets
-The sum of revenues and
expenses
Which item is an expense Cost of goods sold
item?
-Accounts receivable
-Accounts payable
-Cost of goods sold
… 2/19
, 8/9/25, 12:06 AM WGU D196 Pre-Assessment (2025) (TESTING EXAM QUESTIONS) AND VERIFIED ANSWERS (MULTIPLE CHOICES) ||A+ GRA…
-Loans payable
How is gross profit computed? Sales minus cost of goods sold
-Sales minus cost of goods
sold
-Total revenues minus total
expenses
-Accounts receivable minus
accounts payable
-Total assets minus total
liabilities
Which type of account is Equity
retained earnings?
-Liability
-Asset
-Equity
-Revenue
For purposes of cash flow Paying employees
classification in the
statement of cash flows,
which item is an operating
activity?
-Buying equipment
-Paying employees
-Distributing dividends
-Selling bonds
How does a classified balance It distinguishes between current and long-term assets.
sheet
provide useful
information to a decision
maker?
-It provides data for a
period of time instead of as
a point in time.
-It distinguishes between
current and long- term assets.
-It distinguishes liabilities from
expenses.
-It provides data that are not
publicly disclosed.
… 3/19
