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WGU D196 ACCOUNTING- EXAM WITH VERIFIED QUESTIONS AND ANSWERS 2026/2027, Exams of Advanced Education

Harvard UniversityAdvanced Education

WGU D196 ACCOUNTING- EXAM WITH VERIFIED QUESTIONS AND ANSWERS 2026/2027

Typology: Exams

2025/2026

Available from 01/29/2026

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WGU D196 ACCOUNTING- EXAM WITH
VERIFIED QUESTIONS AND ANSWERS
2026/2027
1.Which primary area of accounting generates
reports for internal users? - correct answers-
Management Accounting
2.What is the role of the IASB in regulating
accounting standards? - correct answers-
Establish international accounting standards
3.What group of people make up the FASB? -
correct answers-People from a variety of
business-related backgrounds
4.What is the role of the GASB in setting
accounting standards? - correct answers-The
GASB is a private-sector organization that
establishes accounting and financial reporting
standards for U.S. state and local governments.
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WGU D196 ACCOUNTING- EXAM WITH

VERIFIED QUESTIONS AND ANSWERS

1.Which primary area of accounting generates reports for internal users? - correct answers- Management Accounting 2.What is the role of the IASB in regulating accounting standards? - correct answers- Establish international accounting standards 3.What group of people make up the FASB? - correct answers-People from a variety of business-related backgrounds 4.What is the role of the GASB in setting accounting standards? - correct answers-The GASB is a private-sector organization that establishes accounting and financial reporting standards for U.S. state and local governments.

5.A new product line manager approaches the accounting department in order to understand the past performance of the product line he has been asked to manage in the future. Which role of accounting involves obtaining and using financial information to determine the financial health and performance of a business or product line? - correct answers-Evaluation 6.You read in the newspaper that a local company you are familiar with has been found guilty in court of publishing financial statements that are false and misleading to users of those financial statements. In this situation, what could the American Institute of Certified Public Accountants (AICPA) do in response to the accountants who were found guilty of unethical conduct in accounting practices? - correct answers-Implement professional sanctions 7.What is the correct summary sequence in the accounting cycle? - correct answers-Analyze, Record, Summarize, Prepare

  1. A company sells a product to a customer on account. Which part(s) of the accounting equation does this particular transaction change? - correct answers-Both assets and owners' equity
  2. After Oliver records each transaction, how should he ensure that the accounting equation remains in balance? - correct answers-Add up the balances in all of the asset accounts and compare them to the sum of all the liability and owners' equity accounts
  3. After determining the company's financial position, Oliver recommends that the company borrow money from the bank for the next accounting period. What is the effect of borrowing money from the bank for the next accounting period on the company's books? - correct answers-Cash (an asset) and a liability account both increase.
  4. What is the name of the account that shows the distribution of net income (earnings) to the owners of a business? - correct answers- dividends
  1. A transaction involving the payment of dividends to the owners reduces which part of the accounting equation? - correct answers- Owners' equity
  2. What is the one simple rule that always applies to the accounting equation? - correct answers-The accounting equation must always remain in balance after recording a transaction.
  3. How often is the Form 10-Q filed? - correct answers-quarterly
  4. How often is the Form 10-K filed? - correct answers-Annually
  5. What is net income? - correct answers-The amount by which revenues exceed expenses
  6. What is an income statement? - correct answers-A report of the revenues and expenses of a company during a period
  1. Which item would be classified in the owners' equity section of the balance sheet? - correct answers-Retained earnings
  2. What is the definition of financial statement analysis? - correct answers- Examining both the relationships among financial statement numbers and the trends in those numbers over time
  3. How is a common-size income statement created? - correct answers-By dividing all income statement amounts for a given year by sales for that year
  4. What is the purpose of performing horizontal analysis of financial statements? - correct answers-To highlight trends that may be occurring in the company over time
  5. What is the definition of vertical analysis of financial statements? - correct answers- Displaying each line item as a percentage of another for comparison to other companies in the industry
  1. How does vertical financial statement analysis inform your understanding of a company's performance? - correct answers-It tells you what questions you need to be asking about a company's performance.
  2. Which types of companies can be compared using vertical analysis? - correct answers-Companies that provide the same types of goods or services
  3. Vertical analysis allows an accountant to determine how expenses are changing relative to which line item on the income statement? - correct answers-Total sales
  4. NEED To Do Vertical and horizontal analysis - correct answers-EXCEL
  5. The master budgeting process begins with which forecast? - correct answers-A forecast of sales
  1. What is one important factor to consider when preparing a production budget? - correct answers-Amount of beginning inventory
  2. In which budget should the depreciation of administrative office buildings be included? - correct answers-Selling and administrative expense budget
  3. Which statement about managerial accounting data is true? - correct answers- Managerial accounting data are created based on competitive needs that are unique to the organization.
  4. Which characteristic is a unique feature of management accounting information? - correct answers-Management accounting information is composed of both financial and nonfinancial data.
  5. Which group represents the primary users of managerial accounting information? - correct answers-Managers
  1. Which activity involves the process of tracking the actual performance of a company?
    • correct answers-Controlling
  2. Which statement identifies a difference between managerial and financial accounting?
    • correct answers-Managerial accounting has substantial competitive value, while financial accounting is not a competitive tool.
  3. What is the sequence of the flow of costs through a manufacturing operation? - correct answers-Purchase raw materials, transfer raw materials to production, add direct labor and manufacturing overhead costs, transfer the cost of completed goods to finished goods inventory, sell goods and transfer cost to cost of goods sold.
  4. What costs are included in manufacturing overhead? - correct answers-All manufacturing costs that are not classified as direct materials or direct labor
  1. Leilani and Diego are discussing different types of businesses. They agree that, in terms of cost flows, there are many similarities between a manufacturer of cars, such as General Motors, and a consulting company, such as McKinsey. However, they also agree that there is one very important difference in the costs being incurred by General Motors and McKinsey. What is the important difference in the costs of GM as compared to McKinsey? - correct answers-Correct! One important difference in costs between a manufacturer like GM and a service company like McKinsey is that manufacturers must also manage large amounts of raw materials costs, while the materials included in the services sold by service companies are typically limited to insignificant amounts of supplies used in the service process.
  2. Which statement is true with respect to fixed and variable costs? - correct answers-A fixed cost is fixed in total and decreases per unit as the number of units increases.
  1. Which example correctly shows how contribution margin analysis is used by management in making business decisions? - correct answers-Contribution margin analysis helps management evaluate whether to continue selling a product.
  2. What are differential costs? - correct answers-Future costs that change as the result of a decision
  3. What is an example of an indirect cost in a hospital? - correct answers-Utility costs for the hospital building
  4. These data are for Patel Company.
  5. Selling price per unit$5.00Variable cost per unit$2.00Number of units sold50,000 unitsNet income$40,
  6. Calculate the break-even point in number of units. - correct answers-Sales revenue ($5 ร— 50,000 units)$250,000โˆ’ Variable cost ($2 ร— 50,000 units)100,000= Contribution margin$150,000โˆ’ Fixed cost โˆ’???????= Net income $40,
  1. Contribution margin ratio - correct answers-Contribution margin ratio = $ contribution margin per unit / average selling price per unit
  2. Which phrase below describes job order costing? - correct answers-A system in which manufacturing costs are accumulated by separate product orders or batches
  3. When is job order costing NOT appropriate?
    • correct answers-When a company produces products or services in a continuous process in which jobs or products or projects can't be specifically identified
  4. In a job order costing system, how are factory supervisor wages classified? - correct answers-Manufacturing overhead
  5. What is a period cost? - correct answers-A cost associated with activities occurring outside the factory
  1. Which statement is correct with respect to activity-based costing (ABC) overhead allocation? - correct answers-Overhead is allocated based on several different measures of activity.
  2. One important result of using an ABC system is more accurate product costing. What is another important result of using an ABC system? - correct answers-Better decisions made
  3. An ABC overhead allocation system is not always substantially better than a traditional system. When does a traditional overhead allocation system work well? - correct answers- When the production process for each different product or project or process is basically the same
  4. What is process costing? - correct answers- A method of product costing in which costs are accumulated by process and averaged over all products made during a period