Principles of Financial and Managerial Accounting -
D196 WGU questions with verified answers
Account Ans✓✓✓ An accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance.
Accounting Ans✓✓✓ A system for providing quantitative, financial information
about economic entities that is useful for making sound economic decisions.
Accounting provides the means of recording and communicating business
activities and the results of those activities.
Accounting Cycle Ans✓✓✓ The procedure for analyzing, recording, summarizing,
and reporting the transactions of a business.
Accounting Equation Ans✓✓✓ 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.
Accounting System Ans✓✓✓ The procedures and processes used by a business to
analyze transactions, handle routine bookkeeping tasks, and structure
information so it can be used to evaluate the performance and health of the
business.
Activity rate Ans✓✓✓ The amount of the estimated cost pool divided by the
estimated number of cost driver events
,Activity-based Costing (ABC) Ans✓✓✓ A method of attributing overhead costs to
products based on measurable factors that relate to activities that create
overhead costs.
Actual Manufacturing Overhead Ans✓✓✓ Manufacturing costs other than direct
materials and direct labor.
American Institute of Certified Public Accountants (AICPA) Ans✓✓✓ A
professional organization for CPAs in which membership is voluntary.
Annual Report Ans✓✓✓ A document that summarizes the results of operations
and financial status of a company for the past year and outlines future plans.
Applied Manufacturing Overhead Ans✓✓✓ 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 Ans✓✓✓ A transaction in which a buyer and seller act
independently to get the best possible deal.
Articulation Ans✓✓✓ The interrelationships among the financial statements.
Assets Ans✓✓✓ Economic resources that are owned or controlled by a company.
At break-even Ans✓✓✓ Target income = 0
, Balance Sheet Ans✓✓✓ A summary of the financial position of a company at a
particular date.
Batch-level activities Ans✓✓✓ Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
Batch-level Activities Ans✓✓✓ Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
Book Value Ans✓✓✓ The value of a company measured by the amount of
owner's equity in the company.
Break Even Ans✓✓✓ To make just enough income to cover costs without any
profit or loss.
Break-even Point Ans✓✓✓ 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.
Budget Ans✓✓✓ 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 Ans✓✓✓ An organization operated with the objective of making a profit
from the sale of goods or services.
Business Documents Ans✓✓✓ Records of transactions used as the basis for
recording accounting entries; include invoices, check stubs, receipts, and similar
business papers.
D196 WGU questions with verified answers
Account Ans✓✓✓ An accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance.
Accounting Ans✓✓✓ A system for providing quantitative, financial information
about economic entities that is useful for making sound economic decisions.
Accounting provides the means of recording and communicating business
activities and the results of those activities.
Accounting Cycle Ans✓✓✓ The procedure for analyzing, recording, summarizing,
and reporting the transactions of a business.
Accounting Equation Ans✓✓✓ 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.
Accounting System Ans✓✓✓ The procedures and processes used by a business to
analyze transactions, handle routine bookkeeping tasks, and structure
information so it can be used to evaluate the performance and health of the
business.
Activity rate Ans✓✓✓ The amount of the estimated cost pool divided by the
estimated number of cost driver events
,Activity-based Costing (ABC) Ans✓✓✓ A method of attributing overhead costs to
products based on measurable factors that relate to activities that create
overhead costs.
Actual Manufacturing Overhead Ans✓✓✓ Manufacturing costs other than direct
materials and direct labor.
American Institute of Certified Public Accountants (AICPA) Ans✓✓✓ A
professional organization for CPAs in which membership is voluntary.
Annual Report Ans✓✓✓ A document that summarizes the results of operations
and financial status of a company for the past year and outlines future plans.
Applied Manufacturing Overhead Ans✓✓✓ 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 Ans✓✓✓ A transaction in which a buyer and seller act
independently to get the best possible deal.
Articulation Ans✓✓✓ The interrelationships among the financial statements.
Assets Ans✓✓✓ Economic resources that are owned or controlled by a company.
At break-even Ans✓✓✓ Target income = 0
, Balance Sheet Ans✓✓✓ A summary of the financial position of a company at a
particular date.
Batch-level activities Ans✓✓✓ Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
Batch-level Activities Ans✓✓✓ Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
Book Value Ans✓✓✓ The value of a company measured by the amount of
owner's equity in the company.
Break Even Ans✓✓✓ To make just enough income to cover costs without any
profit or loss.
Break-even Point Ans✓✓✓ 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.
Budget Ans✓✓✓ 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 Ans✓✓✓ An organization operated with the objective of making a profit
from the sale of goods or services.
Business Documents Ans✓✓✓ Records of transactions used as the basis for
recording accounting entries; include invoices, check stubs, receipts, and similar
business papers.
