WGU d196 Pre assessment Test with Correct Answers
Which type of account is retained earnings?
Revenue
Asset
Equity
Liability - Answer-Equity
For purposes of cash flow classification in the statement of cash flows, which item is an operating activity?
Buying equipment
Selling bonds
Di...
WGU d196 Pre assessment
Test with Correct Answers
Which type of account is retained earnings?
Revenue
Asset
Equity
Liability - Answer-Equity
For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity?
Buying equipment
Selling bonds
Distributing dividends
Paying employees - Answer-Paying employees
How does a classified balance sheet provide useful information to a decision maker?
It distinguishes between current and long-term assets.
It provides data for a period of time instead of as a point in time.
It distinguishes liabilities from expenses.
It provides data that are not publicly disclosed. - Answer-It distinguishes between
current and long-term assets.
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
How are production costs treated in a process costing system?
Costs are assigned to the actual manufacturing overhead account during the period.
Costs are assigned to specific jobs or products made during the period.
Costs are accumulated by process and averaged over all products made during the
period.
Costs are assigned to a selling, general, and administrative expense account during the
period. - Answer-Costs are accumulated by process and averaged over all products
made during the period.
, How is the production cost per unit computed in a process costing system?
Amount of overhead cost divided by the number of units completed during a particular
period of time
Amount of direct materials cost divided by the quantity of direct materials used during a
particular period of time
Amount of total production cost divided by the number of units completed during a
particular period of time
Amount of direct labor cost divided by the number of direct labor hours used during a
particular period of time - Answer-Amount of total production cost divided by the number
of units completed during a particular period of time
For which production process is process costing the appropriate costing method to use?
Refining gasoline in a petroleum facility
Producing made-to-order industrial equipment
Building custom-made furniture
Constructing a high-rise office building - Answer-Refining gasoline in a petroleum facility
Which overhead allocation method should be used for a business that mass-produces
breakfast cereal?
Job order costing
Product-line costing
Process costing
ABC costing - Answer-Process costing
What is the correct sequence for the flow of costs through a job order costing system?
Raw materials inventory, work-in-process inventory, cost of goods sold, finished goods
inventory
Raw materials inventory, cost of goods sold, work-in-process inventory, finished goods
inventory
Raw materials inventory, work-in-process inventory, finished goods inventory, cost of
goods sold
Raw materials inventory, finished goods inventory, cost of goods sold, work-in-process
inventory - Answer-Raw materials inventory, work-in-process inventory, finished goods
inventory, cost of goods sold
What is the effect of a company's accounting department maintaining high ethical
standards?
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.
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