WGU D196 EXAM TEST BANK FOR OA & PREASSESSMENT REVIEW / D196 PRACTICE EXAM 2025/2026

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WGU D196 EXAM TEST BANK FOR OA AND PREASSESSMENT REVIEW / D196 PRACTICE EXAM | COMPLETE 2025 ACTUAL EXAM WITH CORRECT VERIFIED ANSWERS | GUARANTEED A+ EXAM Excellence How do revenues and expenses fit into the accounting equation? ✔✔✔ Correct Answer > Revenues minus expenses equals net income, which is part of owners' equity. Which overhead allocation method should be used for a trash bag manufacturer? - ✔✔✔ Correct Answer > Process Costing How does a classified balance sheet provide useful information to a decision maker? - ✔✔✔ Correct Answer > It distinguishes between current and long-term assets. What is the name of the account that shows the distribution of net income (earnings) to the owners of a business? - ✔✔✔ Correct Answer > Dividends Which of the following is not an example of a transaction? - ✔✔✔ Correct Answer > Preparing financial statements On which financial statement would you see cash flows from financing activities? - ✔✔✔ Correct Answer > Statement of Cash Flows A transaction involving the payment of dividends to the owners reduces which part of the accounting equation? - ✔✔✔ Correct Answer > Owners' equity What is the final step in the accounting cycle? - ✔✔✔ Correct Answer > Preparing Reports Whose job is it to make sure that investors are provided with full and fair information about publicly traded companies? - ✔✔✔ Correct Answer > SEC In some companies, the performance measure for profit center managers is heavily influenced by cost allocations downwards from organizational units (such as company headquarters). Why is this a mistake? - ✔✔✔ Correct Answer > Uncontrollable costs should not be included in the performance evaluation measure of a profit center manager. Which is an examples of a product cost? - ✔✔✔ Correct Answer > Raw materials to make a product. Which label is given to the cost of wages for factory supervisors? ✔✔✔ Correct Answer > Manufacturing Overhead A company reports the following data: Price/unit = $20 Variable costs/unit = $12 Fixed costs = $12,000 Given this data, what is the variable cost ratio? - ✔✔✔ Correct Answer > 60% If overhead is underapplied, which statement is true? - ✔✔✔ Correct Answer > Actual costs exceed applied costs. Which of the following is NOT an example of a cost driver? - ✔✔✔ Correct Answer > Selling costs Which item is a period cost? - ✔✔✔ Correct Answer > Marketing expense For the relevant range, which costs are approximately linear within a certain range of production? - ✔✔✔ Correct Answer > Variable Costs