Principles of Financial and Managerial
Accounting - D196 WGU ACTUAL EXAM
QUESTIONS AND ANSWERS VERSION 2025/2026
HIGHLY GRADED A+
Cash collected from customers - CORRECT ANSWERS--(current period revenue ×
current period collection rate) + cash collected from previous period sales
Cash payments to suppliers - CORRECT ANSWERS--(current period purchases ×
current period payment rate) + cash paid on previous period purchases
Cost Variance - CORRECT ANSWERS--Difference between actual costs and budgeted
costs
Contribution Margin - CORRECT ANSWERS--= Sales Revenue - Variable Costs
The difference between total sales and variable costs; the portion of sales revenue
available to cover fixed costs and provide a profit.
Target Income - CORRECT ANSWERS--= Sales Revenue - Variable Costs - Fixed
Costs
A profit level desired by management.
At break-even - CORRECT ANSWERS--Target income = 0
Sales Revenue - CORRECT ANSWERS--= Sales Price x Number of Units
Variable Costs - CORRECT ANSWERS--= Variable Cost per Unit x Number of Units
Costs that change in total in direct proportion to changes in activity level.
Variable Cost Ratio x Sales Revenue - CORRECT ANSWERS--Variable Costs
Unit-level activities - CORRECT ANSWERS--Activities that take place each time a unit
of product is produced.
Batch-level activities - CORRECT ANSWERS--Activities that take place in order to
support a batch or production run, regardless of the size of the batch.
, Product-line Activities - CORRECT ANSWERS--Activities that take place in order to
support a product line, regardless of the number of batches or individual units produced.
cost pool - CORRECT ANSWERS--Total cost being generated by a specific overhead
cost activity.
cost driver - CORRECT ANSWERS--A numerical measure used to reflect the amount of
a specific cost that is associated with a particular activity
Activity rate - CORRECT ANSWERS--The amount of the estimated cost pool divided by
the estimated number of cost driver events
How do expenses impact the accounting equation? - CORRECT ANSWERS--Expenses
decrease owners' equity
Purpose of the accounting cycle? - CORRECT ANSWERS--To turn information about
transactions into financial statements
How is gross profit computed? - CORRECT ANSWERS--Sales minus cost of good sold
Which type of account is retained earnings? - CORRECT ANSWERS--Equity
How does a classified balance sheet provide useful info to a decision maker? -
CORRECT ANSWERS--It distinguishes between current and long-term assets
What are the three primary functions that company managers use managerial
accounting info for? - CORRECT ANSWERS--Planning, controlling, evaluating
How could a period cost be reported in an income statement? - CORRECT ANSWERS-
-As an admin expense
How are the wages of the cashiers classified in a merchandising company? -
CORRECT ANSWERS--Selling expense
What is the label given to the quantity computed as estimated level of activity -
CORRECT ANSWERS--Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost? -
CORRECT ANSWERS--It is reported as a part of cost of goods sold
Which item is a period cost? - CORRECT ANSWERS--Utility bills to heat the
headquarters building
Accounting System - CORRECT ANSWERS--The procedures and processes used by a
business to analyze transactions, handle routine bookkeeping tasks, and structure
information so it can be used to evaluate the performance and health of the business.
Accounting - D196 WGU ACTUAL EXAM
QUESTIONS AND ANSWERS VERSION 2025/2026
HIGHLY GRADED A+
Cash collected from customers - CORRECT ANSWERS--(current period revenue ×
current period collection rate) + cash collected from previous period sales
Cash payments to suppliers - CORRECT ANSWERS--(current period purchases ×
current period payment rate) + cash paid on previous period purchases
Cost Variance - CORRECT ANSWERS--Difference between actual costs and budgeted
costs
Contribution Margin - CORRECT ANSWERS--= Sales Revenue - Variable Costs
The difference between total sales and variable costs; the portion of sales revenue
available to cover fixed costs and provide a profit.
Target Income - CORRECT ANSWERS--= Sales Revenue - Variable Costs - Fixed
Costs
A profit level desired by management.
At break-even - CORRECT ANSWERS--Target income = 0
Sales Revenue - CORRECT ANSWERS--= Sales Price x Number of Units
Variable Costs - CORRECT ANSWERS--= Variable Cost per Unit x Number of Units
Costs that change in total in direct proportion to changes in activity level.
Variable Cost Ratio x Sales Revenue - CORRECT ANSWERS--Variable Costs
Unit-level activities - CORRECT ANSWERS--Activities that take place each time a unit
of product is produced.
Batch-level activities - CORRECT ANSWERS--Activities that take place in order to
support a batch or production run, regardless of the size of the batch.
, Product-line Activities - CORRECT ANSWERS--Activities that take place in order to
support a product line, regardless of the number of batches or individual units produced.
cost pool - CORRECT ANSWERS--Total cost being generated by a specific overhead
cost activity.
cost driver - CORRECT ANSWERS--A numerical measure used to reflect the amount of
a specific cost that is associated with a particular activity
Activity rate - CORRECT ANSWERS--The amount of the estimated cost pool divided by
the estimated number of cost driver events
How do expenses impact the accounting equation? - CORRECT ANSWERS--Expenses
decrease owners' equity
Purpose of the accounting cycle? - CORRECT ANSWERS--To turn information about
transactions into financial statements
How is gross profit computed? - CORRECT ANSWERS--Sales minus cost of good sold
Which type of account is retained earnings? - CORRECT ANSWERS--Equity
How does a classified balance sheet provide useful info to a decision maker? -
CORRECT ANSWERS--It distinguishes between current and long-term assets
What are the three primary functions that company managers use managerial
accounting info for? - CORRECT ANSWERS--Planning, controlling, evaluating
How could a period cost be reported in an income statement? - CORRECT ANSWERS-
-As an admin expense
How are the wages of the cashiers classified in a merchandising company? -
CORRECT ANSWERS--Selling expense
What is the label given to the quantity computed as estimated level of activity -
CORRECT ANSWERS--Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost? -
CORRECT ANSWERS--It is reported as a part of cost of goods sold
Which item is a period cost? - CORRECT ANSWERS--Utility bills to heat the
headquarters building
Accounting System - CORRECT ANSWERS--The procedures and processes used by a
business to analyze transactions, handle routine bookkeeping tasks, and structure
information so it can be used to evaluate the performance and health of the business.
