WGU D196 PRE-ASSESSMENT ACTUAL EXAM 70 QUESTIONS
AND CORRECT ANSWERS 2025-2026 LATEST ALREADY
GRADED A+
What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane - CORRECT ANSWER-Cost of aluminum in making an airplane
What is the effect of a company's accounting department maintaining high ethical standards?
The company can hire fewer accountants to do the same amount of work.
The company can report more favorable results in its financial statements.
The company's accounting information will increase in value.
The company's accounting information will decrease in value. - CORRECT ANSWER-The company's
accounting information will increase in value.
Why might employees be interested in their company's financial accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data are often used in determining employee bonuses.
Financial statement data provide item-by-item product cost information.
Financial statement data provide detailed internal budget information. - CORRECT ANSWER-Financial
statement data are often used in determining employee bonuses.
Which group establishes financial accounting rules in the United States?
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants (AICPA) - CORRECT ANSWER-Financial Accounting
Standards Board (FASB)
, 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 - CORRECT 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 - CORRECT ANSWER-Increasing the proportion
of gross profit to sales by about 2%
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. - CORRECT 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?
Postpone purchasing the new equipment and do not pay cash dividends to shareholders.
Promote cash sales with the goal of having $230,000 in cash sales and only $210,000 in credit sales.
Instead of paying for credit purchases of inventory a month after the purchase, pay two months
after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the month following the credit
sales.
You Selected
Promote cash sales with the goal of having $230,000 in cash sales and only $210,000 in credit sales.
AND CORRECT ANSWERS 2025-2026 LATEST ALREADY
GRADED A+
What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane - CORRECT ANSWER-Cost of aluminum in making an airplane
What is the effect of a company's accounting department maintaining high ethical standards?
The company can hire fewer accountants to do the same amount of work.
The company can report more favorable results in its financial statements.
The company's accounting information will increase in value.
The company's accounting information will decrease in value. - CORRECT ANSWER-The company's
accounting information will increase in value.
Why might employees be interested in their company's financial accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data are often used in determining employee bonuses.
Financial statement data provide item-by-item product cost information.
Financial statement data provide detailed internal budget information. - CORRECT ANSWER-Financial
statement data are often used in determining employee bonuses.
Which group establishes financial accounting rules in the United States?
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants (AICPA) - CORRECT ANSWER-Financial Accounting
Standards Board (FASB)
, 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 - CORRECT 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 - CORRECT ANSWER-Increasing the proportion
of gross profit to sales by about 2%
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. - CORRECT 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?
Postpone purchasing the new equipment and do not pay cash dividends to shareholders.
Promote cash sales with the goal of having $230,000 in cash sales and only $210,000 in credit sales.
Instead of paying for credit purchases of inventory a month after the purchase, pay two months
after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the month following the credit
sales.
You Selected
Promote cash sales with the goal of having $230,000 in cash sales and only $210,000 in credit sales.
