WGU D196 OA CERTIFICATION EXAM
QUESTIONS AND VERIFIED ANSWERS 2026
▶ 2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense. Answer: c
▶ 3 .On which financial statement would you see the valuation of a
company's asset accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings. Answer: B
▶ 4. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions. Answer: c
▶ 5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements. Answer: d
▶ 6. On which financial statement would you see cash flows from financing
activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings. Answer: d
,▶ 7. Whose job is it to make sure that investors are provided with full and
fair information about publicly traded companies?
FASB
AICPA
IASB
SEC. Answer: d
▶ 8. How does a classified balance sheet provide useful information to a
decision maker?
a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time.
Answer: a
▶ 9. In some companies, the performance measures for profit center
managers are heavily influenced by cost allocations downward from
organizational units (such as company headquarters). Why is this a
mistake?
a.Controllable costs should not be included in the performance evaluation
measure of a profit center manager
b.Revenues should not be included in the performance evaluation measure
of a profit center manager
c.Uncontrollable costs should not be included in the performance
evaluation measure of a profit center manager
d. Direct costs should not be included in the performance evaluation
measure of a profit center manager. Answer: c
▶ 10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product. Answer: d
▶ 11. Which label is given to the cost of wages for factory supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses. Answer: c
, ▶ 12. A company reports the following data: Price per unit = $20 Variable
costs per unit = $12 Fixed costs = $12,000 Given these data, what is the
variable cost ratio?
a. 40%
b. 25%
c. 16%
d. 60%. Answer: d
▶ 13. If overhead is underapplied, which statement is true?
a.Actual costs exceed applied costs
b.Applied costs exceed actual costs
c.Costs will not be affected
d. Budgeted and applied costs will be equal. Answer: a
▶ 14. Which of the following is not an example of a cost driver?
a.Miles driven
b.Selling costs
c.Machine hours
d. Number of customers. Answer: b
▶ 15. Which item is a period cost?
Manufacturing supplies
Overhead directly tied to the production facility
Raw materials
Marketing expense. Answer: d
▶ 16. Which overhead allocation method should be used for a trash bag
manufacturer?
a. Product-line costing
b. Process costing
c. ABC costing
d . Job order costing. Answer: b
▶ 17. For relevant range, which costs are approximately linear within a
certain range of production?
a. Fixed costs
b. Variable costs
QUESTIONS AND VERIFIED ANSWERS 2026
▶ 2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense. Answer: c
▶ 3 .On which financial statement would you see the valuation of a
company's asset accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings. Answer: B
▶ 4. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions. Answer: c
▶ 5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements. Answer: d
▶ 6. On which financial statement would you see cash flows from financing
activities?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings. Answer: d
,▶ 7. Whose job is it to make sure that investors are provided with full and
fair information about publicly traded companies?
FASB
AICPA
IASB
SEC. Answer: d
▶ 8. How does a classified balance sheet provide useful information to a
decision maker?
a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time.
Answer: a
▶ 9. In some companies, the performance measures for profit center
managers are heavily influenced by cost allocations downward from
organizational units (such as company headquarters). Why is this a
mistake?
a.Controllable costs should not be included in the performance evaluation
measure of a profit center manager
b.Revenues should not be included in the performance evaluation measure
of a profit center manager
c.Uncontrollable costs should not be included in the performance
evaluation measure of a profit center manager
d. Direct costs should not be included in the performance evaluation
measure of a profit center manager. Answer: c
▶ 10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product. Answer: d
▶ 11. Which label is given to the cost of wages for factory supervisors?
a. Direct labor
b.Direct materials
c. Manufacturing overhead
d. Administrative expenses. Answer: c
, ▶ 12. A company reports the following data: Price per unit = $20 Variable
costs per unit = $12 Fixed costs = $12,000 Given these data, what is the
variable cost ratio?
a. 40%
b. 25%
c. 16%
d. 60%. Answer: d
▶ 13. If overhead is underapplied, which statement is true?
a.Actual costs exceed applied costs
b.Applied costs exceed actual costs
c.Costs will not be affected
d. Budgeted and applied costs will be equal. Answer: a
▶ 14. Which of the following is not an example of a cost driver?
a.Miles driven
b.Selling costs
c.Machine hours
d. Number of customers. Answer: b
▶ 15. Which item is a period cost?
Manufacturing supplies
Overhead directly tied to the production facility
Raw materials
Marketing expense. Answer: d
▶ 16. Which overhead allocation method should be used for a trash bag
manufacturer?
a. Product-line costing
b. Process costing
c. ABC costing
d . Job order costing. Answer: b
▶ 17. For relevant range, which costs are approximately linear within a
certain range of production?
a. Fixed costs
b. Variable costs
