WGU D196 Pre- Assessment (NEW 2026/ 2027 Update) Principles of Financial and Managerial Accounting Review| Questions & Answers | Grade A| 100% Correct (Verified Solutions)

WGUl D196l Pre-l Assessmentl (NEWl 2026/l
2027l Update)l Principlesl ofl Financiall andl
Manageriall Accountingl Review|l Questionsl
&l Answersl |l Gradel A|l 100%l Correctl
(Verifiedl Solutions)

QUESTION
Whatl informationl doesl al balancel sheetl providel tol al decisionl maker?
Summaryl ofl thel operatingl performancel ofl al companyl duringl al period
Summaryl ofl thel operatingl performancel ofl al companyl atl al particularl date
Summaryl ofl thel cashl flowsl ofl al companyl duringl al period
Summaryl ofl thel financiall positionl ofl al companyl atl al particularl date

Answer:
Summaryl ofl thel financiall positionl ofl al companyl atl al particularl date



QUESTION
Whatl isl anl accountl payable?
Thel amountl tol bel paidl byl al companyl forl dividendsl tol shareholders
Thel amountl tol bel paidl byl al companyl inl repaymentl ofl bothl loansl andl dividends
Thel amountl owedl tol al companyl thatl soldl goodsl orl servicesl tol al customerl onl credit
Thel amountl owedl byl al companyl thatl purchasedl goodsl orl servicesl froml al supplierl onl
credit

Answer:
Thel amountl owedl byl al companyl thatl purchasedl goodsl orl servicesl froml al supplierl onl
credit



QUESTION

,Whatl isl anl examplel ofl al financiall costl thatl wouldl resultl froml poorl directl laborl
budgetingl andl planning?
Excessivel inventoryl storagel costs
Increasedl hiring,l training,l andl overtimel costs
Delayedl cashl collectionsl froml creditl customers
Increasedl depreciationl costsl forl facilities

Answer:
Increasedl hiring,l training,l andl overtimel costs



QUESTION
Whatl doesl al managerl havel controll overl inl al costl center?
Costs
Assets
Dividends
Revenues

Answer:
Costs



QUESTION
Whatl shouldl bel consideredl whenl developingl al measurel tol evaluatel thel performancel ofl
al manager?
Onlyl controllablel costs
Onlyl noncontrollablel costs
Onlyl indirectl costs
Onlyl centralizedl costs

Answer:
Onlyl controllablel costs



QUESTION
Inl somel companies,l thel performancel measuresl forl profitl centerl managersl arel heavilyl
influencedl byl costl allocationsl downwardl froml organizationall unitsl (suchl asl companyl
headquarters).

, Whyl isl thisl al mistake?
Directl costsl shouldl notl bel includedl inl thel performancel evaluationl measurel ofl al profitl
centerl manager.
Controllablel costsl shouldl notl bel includedl inl thel performancel evaluationl measurel ofl al
profitl centerl manager.
Uncontrollablel costsl shouldl notl bel includedl inl thel performancel evaluationl measurel ofl al
profitl centerl manager.
Revenuesl shouldl notl bel includedl inl thel performancel evaluationl measurel ofl al profitl
centerl manager.

Answer:
Uncontrollablel costsl shouldl notl bel includedl inl thel performancel evaluationl measurel ofl al
profitl centerl manager.



QUESTION
Whichl budgetl shouldl includel thel expectedl costl ofl suppliesl usedl byl thel officel staffl ofl
thel corporatel headquarters?
Productionl budget
Directl materialsl budget
Salesl budget
Administrativel expensel budget

Answer:
Administrativel expensel budget



QUESTION
Whichl itemsl arel uncontrollable,l externall variablesl thatl makel itl difficultl tol forecastl thel
levell ofl sales?
Inventoryl levell andl productl management
Sellingl pricel andl salesl effort
Customerl tastesl andl economicl conditions
Directl laborl andl advertisingl expenditures

Answer:
Customerl tastesl andl economicl conditions