WGU D102 Exam Questions and Answers
(2026) | Full Test Bank with Verified
Solutions | Grade A+
• account -✓✓an accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance
• accounts receivable -✓✓a current asset representing money due for services
performed or merchandise sold on credit
• accrual accounting -✓✓the process of recording expenses and revenues when
incurred and earned, regardless of when cash is received, and of adjusting original
transaction data into refined measures of a firm's past economic performance and
current economic condition
• accrual basis accounting -✓✓a system of accounting in which revenues and
expenses are recorded as they are earned and incurred, not necessarily when cash is
received or paid
• accumulated depreciation -✓✓reflects the wear and tear, or depreciation, of items
since they were originally purchased
• additional paid-in capital -✓✓capital invested by stockholders that exceeds the
par value of the issued shares
• adjusting entries -✓✓entries required at the end of each accounting period to
recognize, on an accrual basis, revenues and expenses for the period and to report
proper amounts for asset, liability, and owners' equity accounts
,• allowance method -✓✓the recording of estimated losses due to uncollectible
accounts as expenses during the period in which the sales occurred
• allowance for bad debts -✓✓a contra account, deducted from accounts receivable,
that shows the estimated losses from uncollectible accounts
• amortization -✓✓the process of cost allocation that assigns the original cost of an
intangible asset to the periods benefited
• articulatoin -✓✓the interrelationship among the financial statements
• assets -✓✓economic resources that are owned or controlled by a company
• audit committee -✓✓members of a company's board of directors who are
responsible for dealing with the external and internal auditors
• average costing -✓✓an inventory cost flow assumptions whereby cost of goods
sold and the cost of ending inventory are determined by using an average cost of
all merchandise available for sale during the period
• bad debt expense -✓✓an account that represents the portion of the current
period's credit sales that are estimated to be uncollectible
• bad debts -✓✓an uncollecible account receivable
, • balance sheet -✓✓a listing of an organization's assets and of its liabilities at a
certain time
• bank reconciliation -✓✓the process of systematically comparing the cash balance
as reported by the bank with the cash balance on the company's books and
explaining any differences
• board of directors -✓✓individuals elected by the stockholders to govern a
corporation
• bonus -✓✓additional compensation beyond the regular compensation that is paid
to employees if certain objectives are achieved
• book value -✓✓for a long-term operating asset, the asset's original cost less any
accumulated depreciation
• business documents -✓✓records of transactions used as the basis for recording
accounting entries; include invoices, check stubs, receipts, and similar business
papers
• calender year -✓✓an entity's reporting year, from January 1 to December 31
• cash -✓✓coins, currency, money orders, checks, and funds on deposit with
financial institutions
• cash basis accounting -✓✓a system of accounting in which transactions are
recorded and revenues and expenses are recognized only when cash is received or
paid
(2026) | Full Test Bank with Verified
Solutions | Grade A+
• account -✓✓an accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance
• accounts receivable -✓✓a current asset representing money due for services
performed or merchandise sold on credit
• accrual accounting -✓✓the process of recording expenses and revenues when
incurred and earned, regardless of when cash is received, and of adjusting original
transaction data into refined measures of a firm's past economic performance and
current economic condition
• accrual basis accounting -✓✓a system of accounting in which revenues and
expenses are recorded as they are earned and incurred, not necessarily when cash is
received or paid
• accumulated depreciation -✓✓reflects the wear and tear, or depreciation, of items
since they were originally purchased
• additional paid-in capital -✓✓capital invested by stockholders that exceeds the
par value of the issued shares
• adjusting entries -✓✓entries required at the end of each accounting period to
recognize, on an accrual basis, revenues and expenses for the period and to report
proper amounts for asset, liability, and owners' equity accounts
,• allowance method -✓✓the recording of estimated losses due to uncollectible
accounts as expenses during the period in which the sales occurred
• allowance for bad debts -✓✓a contra account, deducted from accounts receivable,
that shows the estimated losses from uncollectible accounts
• amortization -✓✓the process of cost allocation that assigns the original cost of an
intangible asset to the periods benefited
• articulatoin -✓✓the interrelationship among the financial statements
• assets -✓✓economic resources that are owned or controlled by a company
• audit committee -✓✓members of a company's board of directors who are
responsible for dealing with the external and internal auditors
• average costing -✓✓an inventory cost flow assumptions whereby cost of goods
sold and the cost of ending inventory are determined by using an average cost of
all merchandise available for sale during the period
• bad debt expense -✓✓an account that represents the portion of the current
period's credit sales that are estimated to be uncollectible
• bad debts -✓✓an uncollecible account receivable
, • balance sheet -✓✓a listing of an organization's assets and of its liabilities at a
certain time
• bank reconciliation -✓✓the process of systematically comparing the cash balance
as reported by the bank with the cash balance on the company's books and
explaining any differences
• board of directors -✓✓individuals elected by the stockholders to govern a
corporation
• bonus -✓✓additional compensation beyond the regular compensation that is paid
to employees if certain objectives are achieved
• book value -✓✓for a long-term operating asset, the asset's original cost less any
accumulated depreciation
• business documents -✓✓records of transactions used as the basis for recording
accounting entries; include invoices, check stubs, receipts, and similar business
papers
• calender year -✓✓an entity's reporting year, from January 1 to December 31
• cash -✓✓coins, currency, money orders, checks, and funds on deposit with
financial institutions
• cash basis accounting -✓✓a system of accounting in which transactions are
recorded and revenues and expenses are recognized only when cash is received or
paid
