WGU D196 Exam Questions with Correct Answers
Which group represents the primary users of managerial accounting information?
a. Bankers
b. Public stockholders
c. customers
d. Managers - Answer-d
Which type of business purchases finished goods for resale?
a. Merchandising
b. Non profit
c. ...
WGU D196 Exam Questions with
Correct Answers
Which group represents the primary users of managerial accounting information?
a. Bankers
b. Public stockholders
c. customers
d. Managers - Answer-d
Which type of business purchases finished goods for resale?
a. Merchandising
b. Non profit
c. Manufacturing
d. Service - Answer-a
Which types of costs does a merchandiser have?
a. Both product and period costs
b. Merchandisers have both product and period costs
c. Product costs only
d. Neither product nor period costs /Period costs only - Answer-a
How are period costs reported on an income statement?
a. As revenue
b. As an expense
c. As cost of goods sold
d. As an asset - Answer-b
Which item is an example of a controllable cost?
a. Advertising costs
b. Rent expense
c. Depreciation
d. Customer tastes and economic conditions - Answer-a
Which type of business purchases finished goods for resale?
Merchandising
a.Merchandising
b. non profit
c. A manufacturing
d. Service - Answer-a
What costs are included in manufacturing overhead?
a. All manufacturing costs that are not classified as direct materials or direct labor
,b. All manufacturing costs that are classified as direct materials
c. All manufacturing costs that are classified as direct labor
d. All manufacturing costs that are not classified as selling, general, or administrative -
Answer-a
What is work-in-process inventory?
a. All material that is segregated in the finished goods warehouse
b. All rejected material that is segregated in the raw materials warehouse
c. All material on the factory floor that is not yet completed
d .All material that has been sold to customers but not yet recorded - Answer-c
What is the sequence of the flow of costs through a manufacturing operation?
a. 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.
b. Purchase raw materials, sell goods and transfer cost to cost of goods sold, transfer
the cost of completed goods to finished goods inventory, transfer raw materials to
production, add direct labor and manufacturing overhead costs.
c. Transfer the cost of completed goods to finished goods inventory, purchase raw
materials, transfer raw materials to production, sell goods and transfer cost to cost of
goods sold, add direct labor and manufacturing overhead costs.
d. Add direct labor and manufacturing overhead costs, transfer the cost of completed
goods to finished goods inventory, purchase raw materials, transf - Answer-a
1. 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
2. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - Answer-c
3 .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
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
5. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
c.Sale on credit to a customer
d. Preparing financial statements - Answer-d
6. 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
7. 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
8. How does a classified balance sheet provide useful information to a decision maker?
a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time - Answer-a
9. In some companies, the performance measures for profit center managers are
heavily influenced by cost allocations downward from organizational units (such as
company headquarters). Why is this a mistake?
a.Controllable costs should not be included in the performance evaluation measure of a
profit center manager
b.Revenues should not be included in the performance evaluation measure of a profit
center manager
c.Uncontrollable costs should not be included in the performance evaluation measure of
a profit center manager
d. Direct costs should not be included in the performance evaluation measure of a profit
center manager - Answer-c
10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
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