WGU D196 financial and managerial accounting
Practice Questions Latest Update 2024-2025
Actual Exam with 270 Questions and 100%
Verified Correct Answers Guaranteed A+
- CORRECT ANSWER: What is the Securities and Exchange Commission (SEC)?
$175,000 - CORRECT ANSWER: A company reports the following data:
Total sales rev = $275,000
Number of units sold = 25,000 units
Variable costs = $100,00
If the company is operating at its break-even points, what is the company's total
contribution margin?
$75,000 COGS on income statement - CORRECT ANSWER: A retail company
purchased inventory costing $100,000. By the end of the year, inventory costing
$75,000 had been sold.
How is the cost of inventory reported in the financial statements?
60% - CORRECT ANSWER: A company reports the following data:
Price/unit = $20
Variable costs/unit = $12
Fixed costs = $12,000
Given this data, what is the variable cost ratio?
A balance sheet portrays the financial condition of a company at a point in time.
,This describes the elements and purposes of a balance sheet. - CORRECT ANSWER:
Which statement best characterizes the elements and purposes of a balance sheet?
A balance sheet portrays the financial condition of a company at a point in time.
This describes the elements and purposes of a balance sheet. - CORRECT ANSWER:
Which statement best characterizes the elements and purposes of a balance sheet?
A classified balance sheet distinguishes between current and long-term assets. -
CORRECT ANSWER: What is the purpose of a classified balance sheet?
A cost that a segment manager cannot control - CORRECT ANSWER: What is an
indirect cost?
A cost that includes both a fixed portion and a variable portion - CORRECT ANSWER:
What is a mixed cost?
A cost variance is the difference between the actual cost and the budgeted cost. -
CORRECT ANSWER: How is a cost variance computed for a corporate budget?
A forecast of sales - CORRECT ANSWER: The master budgeting process begins with
which forecast?
A manager should be evaluated only on factors he or she can directly control -
CORRECT ANSWER: What is the concept behind responsibility accounting in
management accounting?
A merchandising company has no raw materials inventory or work-in-process inventory.
- CORRECT ANSWER: What is an important difference in the cost accounts of a
merchandising company compared to a manufacturing company?
,A report of the operating, investing, and financing cash flows of a company over a
period of time - CORRECT ANSWER: What is a statement of cash flows?
A report of the revenues and expenses of a company during a period
Revenues minus expenses equal net income. - CORRECT ANSWER: What is an
income statement?
A specific accounting record that provides an efficient way to categorize similar types of
transactions
An account is a specific accounting record that provides an efficient way to categorize
similar transactions. You can think of an individual account as a summary of every
transaction affecting a certain item, such as cash. Examples of asset accounts are
cash, inventory, and equipment. Liability accounts include accounts payable and notes
payable. - CORRECT ANSWER: In the context of the financial accounting cycle, what is
the definition of an account?
A statement of retained earnings portrays the accumulated profits or losses of a
company at a point in time. - CORRECT ANSWER: Which statement best characterizes
the elements and purposes of a statement of retained earnings?
Accounts payable
Accounts payable is a liability because it represents resources that require repayment. -
CORRECT ANSWER: Which account is an example of a liability?
Accounts payable - CORRECT ANSWER: Which item below is a liability?
Accounts receivable - CORRECT ANSWER: Which account is a common asset
account?
, Accounts Receivable - CORRECT ANSWER: Which account is an example of an
asset?
Actual costs exceed applied costs. - CORRECT ANSWER: If overhead is underapplied,
which statement is true?
Add up the balances in all of the asset accounts and compare them to the sum of all the
liability and owners' equity accounts
Because Assets = Liabilities + Owners' Equity, this is the correct way to determine the
equality of the accounting equation. - CORRECT ANSWER: After Oliver records each
transaction, how should he ensure that the accounting equation remains in balance?
Add up the balances in all of the asset accounts and compare them to the sum of all the
liability and owners' equity accounts
Because Assets = Liabilities + Owners' Equity, this is the correct way to determine the
equality of the accounting equation. - CORRECT ANSWER: After Oliver records each
transaction, how should he ensure that the accounting equation remains in balance?
Administrative expense - CORRECT ANSWER: Which of the following is not an
example of a cost driver?
Advertising costs - CORRECT ANSWER: Which item in an example of a controllable
cost?
All expenses besides production-related expenses - CORRECT ANSWER: The sales
and administrative expense budget includes which expenses?
All manufacturing costs that are not classified as direct materials or direct labor -
CORRECT ANSWER: What costs are included in manufacturing overhead?
Practice Questions Latest Update 2024-2025
Actual Exam with 270 Questions and 100%
Verified Correct Answers Guaranteed A+
- CORRECT ANSWER: What is the Securities and Exchange Commission (SEC)?
$175,000 - CORRECT ANSWER: A company reports the following data:
Total sales rev = $275,000
Number of units sold = 25,000 units
Variable costs = $100,00
If the company is operating at its break-even points, what is the company's total
contribution margin?
$75,000 COGS on income statement - CORRECT ANSWER: A retail company
purchased inventory costing $100,000. By the end of the year, inventory costing
$75,000 had been sold.
How is the cost of inventory reported in the financial statements?
60% - CORRECT ANSWER: A company reports the following data:
Price/unit = $20
Variable costs/unit = $12
Fixed costs = $12,000
Given this data, what is the variable cost ratio?
A balance sheet portrays the financial condition of a company at a point in time.
,This describes the elements and purposes of a balance sheet. - CORRECT ANSWER:
Which statement best characterizes the elements and purposes of a balance sheet?
A balance sheet portrays the financial condition of a company at a point in time.
This describes the elements and purposes of a balance sheet. - CORRECT ANSWER:
Which statement best characterizes the elements and purposes of a balance sheet?
A classified balance sheet distinguishes between current and long-term assets. -
CORRECT ANSWER: What is the purpose of a classified balance sheet?
A cost that a segment manager cannot control - CORRECT ANSWER: What is an
indirect cost?
A cost that includes both a fixed portion and a variable portion - CORRECT ANSWER:
What is a mixed cost?
A cost variance is the difference between the actual cost and the budgeted cost. -
CORRECT ANSWER: How is a cost variance computed for a corporate budget?
A forecast of sales - CORRECT ANSWER: The master budgeting process begins with
which forecast?
A manager should be evaluated only on factors he or she can directly control -
CORRECT ANSWER: What is the concept behind responsibility accounting in
management accounting?
A merchandising company has no raw materials inventory or work-in-process inventory.
- CORRECT ANSWER: What is an important difference in the cost accounts of a
merchandising company compared to a manufacturing company?
,A report of the operating, investing, and financing cash flows of a company over a
period of time - CORRECT ANSWER: What is a statement of cash flows?
A report of the revenues and expenses of a company during a period
Revenues minus expenses equal net income. - CORRECT ANSWER: What is an
income statement?
A specific accounting record that provides an efficient way to categorize similar types of
transactions
An account is a specific accounting record that provides an efficient way to categorize
similar transactions. You can think of an individual account as a summary of every
transaction affecting a certain item, such as cash. Examples of asset accounts are
cash, inventory, and equipment. Liability accounts include accounts payable and notes
payable. - CORRECT ANSWER: In the context of the financial accounting cycle, what is
the definition of an account?
A statement of retained earnings portrays the accumulated profits or losses of a
company at a point in time. - CORRECT ANSWER: Which statement best characterizes
the elements and purposes of a statement of retained earnings?
Accounts payable
Accounts payable is a liability because it represents resources that require repayment. -
CORRECT ANSWER: Which account is an example of a liability?
Accounts payable - CORRECT ANSWER: Which item below is a liability?
Accounts receivable - CORRECT ANSWER: Which account is a common asset
account?
, Accounts Receivable - CORRECT ANSWER: Which account is an example of an
asset?
Actual costs exceed applied costs. - CORRECT ANSWER: If overhead is underapplied,
which statement is true?
Add up the balances in all of the asset accounts and compare them to the sum of all the
liability and owners' equity accounts
Because Assets = Liabilities + Owners' Equity, this is the correct way to determine the
equality of the accounting equation. - CORRECT ANSWER: After Oliver records each
transaction, how should he ensure that the accounting equation remains in balance?
Add up the balances in all of the asset accounts and compare them to the sum of all the
liability and owners' equity accounts
Because Assets = Liabilities + Owners' Equity, this is the correct way to determine the
equality of the accounting equation. - CORRECT ANSWER: After Oliver records each
transaction, how should he ensure that the accounting equation remains in balance?
Administrative expense - CORRECT ANSWER: Which of the following is not an
example of a cost driver?
Advertising costs - CORRECT ANSWER: Which item in an example of a controllable
cost?
All expenses besides production-related expenses - CORRECT ANSWER: The sales
and administrative expense budget includes which expenses?
All manufacturing costs that are not classified as direct materials or direct labor -
CORRECT ANSWER: What costs are included in manufacturing overhead?
