Page 1 of 49
D 196 / D196 PRE - ASSESSMENT & OBJECTIVE
ASSESSMENT (LATEST UPDATES STUDY
BUNDLE PACKAGE WITH SOLUTIONS) PRINCIPLES OF
FINANCIAL AND MANAGERIAL ACCOUNTING |
QUESTIONS AND ANSWERS | GRADE A | 100%
CORRECT (VERIFIED ANSWERS) - WGU
What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
.....ANSWER.....Cost of aluminum in making an airplane
What is the effect of a company's accounting department
maintaining high ethical standards?
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The company can hire fewer accountants to do the same amount
of work.
The company can report more favorable results in its financial
statements.
The company's accounting information will increase in value.
The company's accounting information will decrease in value.
.....ANSWER.....The company's accounting information will
increase in value.
Why might employees be interested in their company's financial
accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data are often used in determining employee
bonuses.
Financial statement data provide item-by-item product cost
information.
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Financial statement data provide detailed internal budget
information.
.....ANSWER.....Financial statement data are often used in
determining employee bonuses.
Which group establishes financial accounting rules in the United
States?
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants (AICPA)
.....ANSWER.....Financial Accounting Standards Board (FASB)
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
, Page 4 of 49
Statement of stakeholder funds
Statement of cash flows
.....ANSWER.....Statement of cash flows
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's
accounting equation?
Assets decrease by $5,000; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
.....ANSWER.....Assets decrease by $5,000; expenses increase by
$5,000.
What is a transaction?
Two parties exchanging something of value
D 196 / D196 PRE - ASSESSMENT & OBJECTIVE
ASSESSMENT (LATEST UPDATES STUDY
BUNDLE PACKAGE WITH SOLUTIONS) PRINCIPLES OF
FINANCIAL AND MANAGERIAL ACCOUNTING |
QUESTIONS AND ANSWERS | GRADE A | 100%
CORRECT (VERIFIED ANSWERS) - WGU
What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
.....ANSWER.....Cost of aluminum in making an airplane
What is the effect of a company's accounting department
maintaining high ethical standards?
,Page 2 of 49
The company can hire fewer accountants to do the same amount
of work.
The company can report more favorable results in its financial
statements.
The company's accounting information will increase in value.
The company's accounting information will decrease in value.
.....ANSWER.....The company's accounting information will
increase in value.
Why might employees be interested in their company's financial
accounting information?
Financial statement data are used to record long term liabilities.
Financial statement data are often used in determining employee
bonuses.
Financial statement data provide item-by-item product cost
information.
,Page 3 of 49
Financial statement data provide detailed internal budget
information.
.....ANSWER.....Financial statement data are often used in
determining employee bonuses.
Which group establishes financial accounting rules in the United
States?
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
American Institute of Certified Public Accountants (AICPA)
.....ANSWER.....Financial Accounting Standards Board (FASB)
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
, Page 4 of 49
Statement of stakeholder funds
Statement of cash flows
.....ANSWER.....Statement of cash flows
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's
accounting equation?
Assets decrease by $5,000; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
.....ANSWER.....Assets decrease by $5,000; expenses increase by
$5,000.
What is a transaction?
Two parties exchanging something of value
