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WGU D196
WGU D196 Objective Assessment
Principles of Financial & Managerial
Accounting| Qs & As| Grade A| 100%
Correct | (2025/ 2026)
What is the impact of expenses on the accounting equation? - ANS ✓Expenses decrease
owners' equity.
Which type of account are accounts payable and notes payable both examples of? - ANS
✓Liability
What is the purpose of the financial accounting cycle? - ANS ✓To gather information
related to the expenses and income generated by a company
According to the accounting equation, the amount of liabilities and equity must always
be equal to another amount.
What is that other amount? - ANS ✓Assets
Which item is an expense item? - ANS ✓Cost of goods sold
How is gross profit computed? - ANS ✓Sales minus cost of goods sold
Which type of account is retained earnings? - ANS ✓Equity
For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity? - ANS ✓Paying Employees
WGU D196
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WGU D196
How does a classified balance sheet provide useful information to a decision maker? -
ANS ✓It distinguishes between current and long-term assets
What information does a balance sheet provide to a decision maker? - ANS ✓Summary
of the financial position of a company at a particular date
What is an account payable? - ANS ✓The amount owed by a company that purchased
goods or services from a supplier on credit
Why is the net cash for December negative while total sales for December are the
highest out of the months from October through December? - ANS ✓Total cash available
does not reflect December sales because there was a high volume of credit sales.
Managerial Accounting - ANS ✓focuses on the information needed for planning,
implementing plans, and controlling costs. For Internal decisions
Financial Accounting - ANS ✓concerned with reporting financial information to external
parties, such as stockholders, creditors, and regulators
What is looked at in Managerial Accounting? - ANS ✓~Product Costs
~Breakeven Analysis
~Budgeting
~Performance Evaluation
~Outsource Production
What is looked at in Financial Accounting? - ANS ✓~Credit Analysis
~Regulatory Uses
~Estimate the Value of the Company
WGU D196
WGU D196
WGU D196 Objective Assessment
Principles of Financial & Managerial
Accounting| Qs & As| Grade A| 100%
Correct | (2025/ 2026)
What is the impact of expenses on the accounting equation? - ANS ✓Expenses decrease
owners' equity.
Which type of account are accounts payable and notes payable both examples of? - ANS
✓Liability
What is the purpose of the financial accounting cycle? - ANS ✓To gather information
related to the expenses and income generated by a company
According to the accounting equation, the amount of liabilities and equity must always
be equal to another amount.
What is that other amount? - ANS ✓Assets
Which item is an expense item? - ANS ✓Cost of goods sold
How is gross profit computed? - ANS ✓Sales minus cost of goods sold
Which type of account is retained earnings? - ANS ✓Equity
For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity? - ANS ✓Paying Employees
WGU D196
, 2
WGU D196
How does a classified balance sheet provide useful information to a decision maker? -
ANS ✓It distinguishes between current and long-term assets
What information does a balance sheet provide to a decision maker? - ANS ✓Summary
of the financial position of a company at a particular date
What is an account payable? - ANS ✓The amount owed by a company that purchased
goods or services from a supplier on credit
Why is the net cash for December negative while total sales for December are the
highest out of the months from October through December? - ANS ✓Total cash available
does not reflect December sales because there was a high volume of credit sales.
Managerial Accounting - ANS ✓focuses on the information needed for planning,
implementing plans, and controlling costs. For Internal decisions
Financial Accounting - ANS ✓concerned with reporting financial information to external
parties, such as stockholders, creditors, and regulators
What is looked at in Managerial Accounting? - ANS ✓~Product Costs
~Breakeven Analysis
~Budgeting
~Performance Evaluation
~Outsource Production
What is looked at in Financial Accounting? - ANS ✓~Credit Analysis
~Regulatory Uses
~Estimate the Value of the Company
WGU D196
