1
WGU D196 PRACTICE QUESTIONS FOR
BUSINESS AND FINANCE STUDENTS REAL
EXAM QUESTIONS WITH CORRECT
ANSWERS 2025/2026 LATEST
Which of the following is an example of a merchandising company?
a.Furniture maker
b.Locksmith
c.Landscaper
d. Clothing store ---- ANSWER----d
Actual manufacturing overhead includes which of the following?
a.Direct labor and direct materials expenses
b.Manufacturing costs other than direct labor and direct materials
c. Manufacturing costs including direct labor and direct materials d .Non-manufacturing
costs other than direct labor and direct materials ---- ANSWER----b
Activity based costing could be used by which of the following companies?
a.Large commercial and industrial construction
b.Healthcare organization
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c.Car manufacturing company
d. All of the above could use activity based costing ---- ANSWER----d
How are the wages of a production supervisors classified in a manufacturing company?
a.Direct labor expense
b. Manufacturing overhead
c. Selling expense d .Direct materials expense ---- ANSWER----b
Which of the following is not an example of a cost driver?
a. Administrative expenses
b. Direct labor hours
c. Machine hours d .Number of inspections ---- ANSWER----a
What is not an example of direct materials?
a. Cost of aluminum in making an airplane
b. Cost of saws and hammers in constructing a house c .Cost of fabric in
making clothing
d. Cost of wood in making furniture ---- ANSWER----b
Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
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b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements ---- ANSWER----d
Which budget should include all production costs other than those for direct materials and
direct labor?
A. Sales budget
B. Direct materials budget
C. Manufacturing overhead budget
D. Production budget ---- ANSWER----c
Which account is a common asset account?
A. Accounts payables
B. Equity
C. Accounts receivable
D. Utilities Expense ---- ANSWER----c
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
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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
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
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
WGU D196 PRACTICE QUESTIONS FOR
BUSINESS AND FINANCE STUDENTS REAL
EXAM QUESTIONS WITH CORRECT
ANSWERS 2025/2026 LATEST
Which of the following is an example of a merchandising company?
a.Furniture maker
b.Locksmith
c.Landscaper
d. Clothing store ---- ANSWER----d
Actual manufacturing overhead includes which of the following?
a.Direct labor and direct materials expenses
b.Manufacturing costs other than direct labor and direct materials
c. Manufacturing costs including direct labor and direct materials d .Non-manufacturing
costs other than direct labor and direct materials ---- ANSWER----b
Activity based costing could be used by which of the following companies?
a.Large commercial and industrial construction
b.Healthcare organization
, 2
c.Car manufacturing company
d. All of the above could use activity based costing ---- ANSWER----d
How are the wages of a production supervisors classified in a manufacturing company?
a.Direct labor expense
b. Manufacturing overhead
c. Selling expense d .Direct materials expense ---- ANSWER----b
Which of the following is not an example of a cost driver?
a. Administrative expenses
b. Direct labor hours
c. Machine hours d .Number of inspections ---- ANSWER----a
What is not an example of direct materials?
a. Cost of aluminum in making an airplane
b. Cost of saws and hammers in constructing a house c .Cost of fabric in
making clothing
d. Cost of wood in making furniture ---- ANSWER----b
Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
, 3
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements ---- ANSWER----d
Which budget should include all production costs other than those for direct materials and
direct labor?
A. Sales budget
B. Direct materials budget
C. Manufacturing overhead budget
D. Production budget ---- ANSWER----c
Which account is a common asset account?
A. Accounts payables
B. Equity
C. Accounts receivable
D. Utilities Expense ---- ANSWER----c
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
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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
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
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
