WGU D074 Principles of Accounting Exam Questions with Complete Solutions | Verified & Updated

WGU D074 Principles of Accounting Exam Questions with Complete Solutions | Verified & Updated Actual Manufacturing Overhead - Answer ️️ -Manufacturing costs other than direct materials and direct labor. Break Even - Answer ️️ -To make just enough income to cover costs without any profit or loss. Budget - Answer ️️ -A quantitative expression of a plan that shows how a firm or organization will acquire and use resources over some specified period of time. Business Documents - Answer ️️ -Records of transactions used as the basis for recording accounting entries; include invoices, check stubs, receipts, and similar business papers. Business - Answer ️️ -An organization operated with the objective of making a profit from the sale of goods or services. Contribution Margin Ratio - Answer ️️ -The percentage of net sales revenue left after variable costs are deducted; the contribution margin divided by net sales revenue. Differential Costs - Answer ️️ -Future costs that change as a result of a decision; also called incremental or relevant costs. Economy of Scale - Answer ️️ -A pattern of decreasing costs per unit as unit volume increases. Estimated Manufacturing Overhead - Answer ️️ -Budgeted manufacturing overhead costs that are used to establish the predetermined overhead rate. Evaluating - Answer ️️ -Analyzing results, rewarding performance, and identifying problems. Expenses - Answer ️️ -The amount of assets consumed through business operations; the costs incurred in normal business operations to generate revenues. Horizontal Analysis - Answer ️️ -A method of financial statement analysis that compares a firm's results from year to year. Opportunity Costs - Answer ️️ -The benefits lost or forfeited as a result of selecting one alternative course of action over another. Owners' Equity - Answer ️️ -The remaining claim against the assets of a business after the liabilities have been deducted. Securities and Exchange Commission (SEC) - Answer ️️ -The government body responsible for regulating the financial reporting practices of most publicly owned corporations in connection with the buying and selling of stocks and bonds. Segment Margins - Answer ️️ -The difference between segment revenue and direct segment costs; a measure of the segment's contribution to cover indirect fixed costs and provide costs; in effect, the operating profit created by the segment. Target Income - Answer ️️ -A profit level desired by management. Variable Cost Ratio - Answer ️️ -The ratio of variable costs to sales. Variable Costs - Answer ️️ -Costs that change in total in direct proportion to changes in activity level. (Sales Price×Units)−(Variable Cost×Units)−Fixed Costs=Target Income or Sales Revenue−Variable Costs−Fixed Costs=Target Income - Answer ️️ -Target income equation Sales Revenue−(Variable Cost Ratio×Sales Revenue)−Fixed Costs=Profit ($0) Break-Even Point in Sales Dollars equation - Answer ️️ -Break-Even Point in Sales Dollars equation Articulation - Answer ️️ -The interrelationships among the financial statements. Period Costs - Answer ️️ -Costs not directly related to a product, service, or asset. They are charged as expenses to the income statement in the period in which they are incurred. Account - Answer ️️ -An accounting record in which the results of transactions are accumulated; shows increases, decreases, and a balance. Accounting Equation - Answer ️️ -An algebraic equation that expresses the relationship between assets (resources), liabilities (obligations), and owner's equity (net assets, or the residual interest in a business after all liabilities have been met): Assets = Liabilities + Owners' Equity. Activity-based Costing (ABC) - Answer ️️ -A method of attributing overhead costs to products based on measurable factors that relate to activities that create overhead costs. American Institute of Certified Public Accountants (AICPA) - Answer ️️ -A professional organization for CPAs in which membership is voluntary. Applied Manufacturing Overhead - Answer ️️ -The amount of the manufacturing overhead that is assigned to the goods produced. This is usually done by using a predetermined annual overhead rate. Arm's-length Transaction - Answer ️️ -A transaction in which a buyer and seller act independently to get the best possible deal. Batch-level Activities - Answer ️️ -Activities that take place in order to support a batch or production run, regardless of the size of the batch. Break-even Point - Answer ️️ -The amount of sales at which total costs of the number of units sold equal total revenues; the point at which there is no profit or loss. Capital Budgeting - Answer ️️ -Systematic planning for long-term investments in operating assets. Cash Budget - Answer ️️ -A short-term schedule of expected cash inflows and outflows during a period of time. Classified Balance Sheet - Answer ️️ -A balance sheet that distinguishes between current and long-term asset