WGU D515 PVAHCS ANALYSIS
WORKSHEET COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ 17. What does it mean if a company has a debt ratio of 101.5%O The
company has 1.5% more current liabilities than current assetsO The
company has 1.5% more total liabilities than total assetsO The company has
1.5% more total liabilities than net incomeO The company has 1.5% more
total liabilities than gross sales.
Answer: O The company has 1.5% more total liabilities than total assets
◍ Which type of business organization has a major focus on direct materials,
direct labor, and overhead?ManufacturingServiceRetailMerchandising.
Answer: Manufacturing
◍ 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).
Answer: Financial Accounting Standards Board (FASB)
◍ 2. Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time?O
Statement of Cash FlowsO Cash flow scheduleO Summary of cash
receiptsO Cash receipts and disbursements.
Answer: O Statement of Cash Flows
◍ 51. During its first month of operations, a manufacturer incurs the following
costs (in dollars) related to activities within its factory: Direct materials
, $15,000 Direct labor $30,000 Manufacturing overhead $40,000What
amount should be reported as cost of goods sold on the income statement if
5,000 units are produced and 4,000 are sold?O $56,000O $68,000O
$70,000O $85,000.
Answer: O $68,000
◍ How could a period cost be reported in an income statement?As an
administrative expenseAs manufacturing overheadAs cost of goods
manufacturedAs cost of goods sold.
Answer: As an administrative expense
◍ 47. Which two examples are period costs? Choose 2 answersO
Manufacturing overhead O Administrative expenses O Direct labor O
Selling expenses.
Answer: O Administrative expensesO Selling expenses
◍ How is overhead allocated in an ABC system?Sum of materials and labor
cost multiplied by number of unitsBudgeted overhead multiplied by
expected number of direct labor hoursYou SelectedCost pool multiplied by
number of cost driver eventsActivity rate multiplied by number of cost
driver events.
Answer: Activity rate multiplied by number of cost driver events
◍ Which form of debt should be reported in the long-term liability category?O
Accounts payable due in 30 daysO Salaries payable due in 2 weeksO
Unearned revenue that will be earned in 9 monthsO Notes payable expected
to be paid in 18 months.
Answer: O Notes payable expected to be paid in 18 months
◍ Which item is an expense item?Cost of goods soldLoans payableAccounts
receivableAccounts payable.
Answer: Cost of goods sold
◍ 57. A running shoe manufacturer produces three types of shoes: traditional,
minimalist, and spikes. The company uses the following information to
determine activity rates for each pool: Shoe ProductionCosts: $250,000Total
, Activity: 20,000 pair of shoesShoe BatchesCosts: $10,000Total Activity:
500 batchesShoe DesignCosts: $5,000Total Activity: 100 partsTotal:
$265,000TraditionalPairs: 10,000Batches: 150Parts: 20MinimalistPairs:
7,500Batches: 250Parts: 30SpikePairs: 2,500Batches: 100Parts: 50What is
the total amount of overhead applied to spikes shoes?O $35,750O $31,250O
$100,250O $265,000.
Answer: O $35,750
◍ 41. Which two actions do internal auditors perform to assist in maintaining
the integrity of financial statements? Choose 2 answersO They issue
opinions regarding whether financial statements align with Generally
Accepted Accounting Principles (GAAP). O They review financial records
and internal controls. O They search for and investigate fraud. O They
perform the initial accounting for various transactions..
Answer: O They review financial records and internal controls. O They
search for and investigate fraud.
◍ Which label is given to the cost of electricity in a furniture factory?Direct
laborAdministrative expensesManufacturing overheadDirect materials.
Answer: Manufacturing overhead
◍ What is an example of a financial cost that would result from poor direct
labor budgeting and planning?Delayed cash collections from credit
customersExcessive inventory storage costsIncreased hiring, training, and
overtime costsIncreased depreciation costs for facilities.
Answer: Increased hiring, training, and overtime costs
◍ Which cost category is not formally tracked in a company's accounting
system?You SelectedOut-of-pocket costsOpportunity costsDirect
costsIndirect costs.
Answer: Opportunity costs
◍ What information does a balance sheet provide to a decision
maker?Summary of the operating performance of a company during a
periodSummary of the financial position of a company at a particular
dateSummary of the cash flows of a company during a periodSummary of
WORKSHEET COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ 17. What does it mean if a company has a debt ratio of 101.5%O The
company has 1.5% more current liabilities than current assetsO The
company has 1.5% more total liabilities than total assetsO The company has
1.5% more total liabilities than net incomeO The company has 1.5% more
total liabilities than gross sales.
Answer: O The company has 1.5% more total liabilities than total assets
◍ Which type of business organization has a major focus on direct materials,
direct labor, and overhead?ManufacturingServiceRetailMerchandising.
Answer: Manufacturing
◍ 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).
Answer: Financial Accounting Standards Board (FASB)
◍ 2. Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time?O
Statement of Cash FlowsO Cash flow scheduleO Summary of cash
receiptsO Cash receipts and disbursements.
Answer: O Statement of Cash Flows
◍ 51. During its first month of operations, a manufacturer incurs the following
costs (in dollars) related to activities within its factory: Direct materials
, $15,000 Direct labor $30,000 Manufacturing overhead $40,000What
amount should be reported as cost of goods sold on the income statement if
5,000 units are produced and 4,000 are sold?O $56,000O $68,000O
$70,000O $85,000.
Answer: O $68,000
◍ How could a period cost be reported in an income statement?As an
administrative expenseAs manufacturing overheadAs cost of goods
manufacturedAs cost of goods sold.
Answer: As an administrative expense
◍ 47. Which two examples are period costs? Choose 2 answersO
Manufacturing overhead O Administrative expenses O Direct labor O
Selling expenses.
Answer: O Administrative expensesO Selling expenses
◍ How is overhead allocated in an ABC system?Sum of materials and labor
cost multiplied by number of unitsBudgeted overhead multiplied by
expected number of direct labor hoursYou SelectedCost pool multiplied by
number of cost driver eventsActivity rate multiplied by number of cost
driver events.
Answer: Activity rate multiplied by number of cost driver events
◍ Which form of debt should be reported in the long-term liability category?O
Accounts payable due in 30 daysO Salaries payable due in 2 weeksO
Unearned revenue that will be earned in 9 monthsO Notes payable expected
to be paid in 18 months.
Answer: O Notes payable expected to be paid in 18 months
◍ Which item is an expense item?Cost of goods soldLoans payableAccounts
receivableAccounts payable.
Answer: Cost of goods sold
◍ 57. A running shoe manufacturer produces three types of shoes: traditional,
minimalist, and spikes. The company uses the following information to
determine activity rates for each pool: Shoe ProductionCosts: $250,000Total
, Activity: 20,000 pair of shoesShoe BatchesCosts: $10,000Total Activity:
500 batchesShoe DesignCosts: $5,000Total Activity: 100 partsTotal:
$265,000TraditionalPairs: 10,000Batches: 150Parts: 20MinimalistPairs:
7,500Batches: 250Parts: 30SpikePairs: 2,500Batches: 100Parts: 50What is
the total amount of overhead applied to spikes shoes?O $35,750O $31,250O
$100,250O $265,000.
Answer: O $35,750
◍ 41. Which two actions do internal auditors perform to assist in maintaining
the integrity of financial statements? Choose 2 answersO They issue
opinions regarding whether financial statements align with Generally
Accepted Accounting Principles (GAAP). O They review financial records
and internal controls. O They search for and investigate fraud. O They
perform the initial accounting for various transactions..
Answer: O They review financial records and internal controls. O They
search for and investigate fraud.
◍ Which label is given to the cost of electricity in a furniture factory?Direct
laborAdministrative expensesManufacturing overheadDirect materials.
Answer: Manufacturing overhead
◍ What is an example of a financial cost that would result from poor direct
labor budgeting and planning?Delayed cash collections from credit
customersExcessive inventory storage costsIncreased hiring, training, and
overtime costsIncreased depreciation costs for facilities.
Answer: Increased hiring, training, and overtime costs
◍ Which cost category is not formally tracked in a company's accounting
system?You SelectedOut-of-pocket costsOpportunity costsDirect
costsIndirect costs.
Answer: Opportunity costs
◍ What information does a balance sheet provide to a decision
maker?Summary of the operating performance of a company during a
periodSummary of the financial position of a company at a particular
dateSummary of the cash flows of a company during a periodSummary of
