WGU D196 PRINCIPLES OF FINANCIAL
AND MANAGERIAL ACCOUNTING NEW
WRITTEN COURSE REQUIREMENT
MATERIAL EXAM SCRIPT 2026 UPDATED
QUESTIONS WITH DETAILED ANSWERS
GRADED A+
⩥ 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 provide detailed internal budget information.
-Financial statement data are often used in determining employee
bonuses.
-Financial statement data provide item-by-item product cost information.
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)
-American Institute of Certified Public Accountants (AICPA)
-Financial Accounting Standards Board (FASB)
,-International Accounting Standards Board (IASB) Answer: Financial
Accounting Standards Board (FASB)
⩥ Which report is one of the three primary financial statements?
-Statement of stakeholder funds
-Statement of cash flows
-Statement of the accounting cycle
-Statement of management accounting Answer: Statement of cash flows
⩥ A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting
equation?
-Assets decrease by $5,000; expenses increase by $5,000.
-Assets decrease by $5,000; liabilities increase by $5,000.
-Assets decrease by $5,000; revenues increase by $5,000.
-Assets increase by $5,000; expenses increase by $5,000. Answer:
Assets decrease by $5,000; expenses increase by $5,000.
⩥ What is a transaction?
-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 Answer: Two parties exchanging
something of value
⩥ A company borrowed $80,000 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. Answer: Expenses decrease owners'
equity.
⩥ What is the impact of expenses on the accounting equation?
-Expenses decrease owners' equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity. Answer: Expenses decrease owners'
equity.
⩥ Which type of account are accounts payable and notes payable both
examples of?
-Asset
-Equity
AND MANAGERIAL ACCOUNTING NEW
WRITTEN COURSE REQUIREMENT
MATERIAL EXAM SCRIPT 2026 UPDATED
QUESTIONS WITH DETAILED ANSWERS
GRADED A+
⩥ 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 provide detailed internal budget information.
-Financial statement data are often used in determining employee
bonuses.
-Financial statement data provide item-by-item product cost information.
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)
-American Institute of Certified Public Accountants (AICPA)
-Financial Accounting Standards Board (FASB)
,-International Accounting Standards Board (IASB) Answer: Financial
Accounting Standards Board (FASB)
⩥ Which report is one of the three primary financial statements?
-Statement of stakeholder funds
-Statement of cash flows
-Statement of the accounting cycle
-Statement of management accounting Answer: Statement of cash flows
⩥ A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting
equation?
-Assets decrease by $5,000; expenses increase by $5,000.
-Assets decrease by $5,000; liabilities increase by $5,000.
-Assets decrease by $5,000; revenues increase by $5,000.
-Assets increase by $5,000; expenses increase by $5,000. Answer:
Assets decrease by $5,000; expenses increase by $5,000.
⩥ What is a transaction?
-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 Answer: Two parties exchanging
something of value
⩥ A company borrowed $80,000 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. Answer: Expenses decrease owners'
equity.
⩥ What is the impact of expenses on the accounting equation?
-Expenses decrease owners' equity.
-Expenses increase liabilities.
-Expenses decrease liabilities.
-Expenses increase owners' equity. Answer: Expenses decrease owners'
equity.
⩥ Which type of account are accounts payable and notes payable both
examples of?
-Asset
-Equity
