WGU D196 OA AND PRE -ASSESSEMENT EXAM 2024

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WGU D196 OA AND PRE -ASSESSEMENT EXAM 2024/

D196 ACTUAL EXAM QUESTIONS WITH CORRECT

VERIFIED ANSWERS/ GRADED A+

1. A company reports the following data:

Total sales revenue = $275,000 Number of units sold = 25,000 units Variable costs = $100,000 If the company is operating at its break-even point, what is the company's total contribution margin?a.$250,000 b.$175,000 c.$150,000

• $125,000 - Correct Answer - b

• How are period costs reported on an income statement?
• As revenue
• As an expense
• As cost of goods sold
• As an asset - Correct Answer - b

• Which item is an example of a controllable cost?
• Advertising costs
• Rent expense 1 / 4

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• Depreciation
• Customer tastes and economic conditions - Correct Answer – a

• Which of the following is not an operating expense?
• Advertising and marketing
• Office supplies
• Utilities
• Income taxes - Correct Answer - d

• Type of accounts payable and notes payable are
• Liability
• asset
• equity
• none of the answers - Correct Answer - a

• Purposes of accounting cycle?
• potential gain from other alternatives when one alternative is chosen.
• To turn information in to financial
• turn off employees
• All of the answers - Correct Answer - b

• The amount of liabilities and equity must equal
• Asset
• balance sheet
• retained of cash flows 2 / 4

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• none of the answers - Correct Answer - a

• salary is
• liability
• expense
• a and b
• none of the answers - Correct Answer - b

9. Example of Operating activity in the company is :

• selling land
• taxes activities
• paying employees
• all of the answers - Correct Answer - c

• A company purchases equipment with a note payable. How does this

transaction affect the paying company's accounting equation?

• Asset increases; Liability increases
• Asset increases; Asset decreases
• Asset increases; Expense increases

d .Asset increases; Equity decreases - Correct Answer - a

• What is the impact of paying employee wages on the accounting

equation?

• Increase owner's equity
• Increase expense
• Decrease expense 3 / 4

pg. 4 d .Increase asset - Correct Answer - b

• Which account is summarized on the balance sheet?
• Expense account
• Owner's equity
• Revenue account
• Cost of good sold - Correct Answer - b

• A retail company purchased inventory costing $100,000. By the end of

the year, inventory costing $75,000 had been sold. How is the cost of inventory reported in the financial statements?a.$75,000 COGS on balance sheet b.$75,000 inventory on balance sheet c.$75,000 COGS on income statement

• $75,000 inventory on income statement - Correct Answer - c

• Which of the following is an example of a merchandising company?
• Furniture maker
• Locksmith
• Landscaper
• Clothing store - Correct Answer - d

• Actual manufacturing overhead includes which of the following?
• Direct labor and direct materials expenses
• Manufacturing costs other than direct labor and direct materials
• Manufacturing costs including direct labor and direct materials
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