WGU D102 Financial Accounting Final OA Review
Module 1 Questions and Answers 2026
Balance Sheet
a listing of an organization's assets and of its liabilities at a certain time or date.
Equity
can be thought of as the amount of the assets that the owners of the organization
can really call their own, the amount that would be left if all the liabilities were
paid off.
Balance Sheet
can be used to evaluate a company's financial position by comparing the
company's resources with its obligations.
Basic Accounting Equation
Assets = Liabilities + Owners Equity.
Assets
economic resources that are owned or controlled by a company that will provide a
probable economic future benefit.
Liquidity
the ease with which the item can be turned into cash.
Cash- Coins, currency, checks
, Accounts Receivable - Amounts owed to a company that sold goods or services to
a customer on credit
Inventory- Items that are purchased or manufactured by a company and are
resold
Buildings- Structures used in the operations of a business
What are some common assets?
Liabilities
the economic obligations of a company and include primarily the money or
services that the company owes its creditors.
Accounts Payable- Amount owed as a result of the purchase of goods and services
on credit
Taxes Payable- Amount owed to federal and state governments resulting from the
application of tax laws
Mortgage Payable- Amount owed relating to the purchase of property
Unearned Revenue- Amount owed in services or product (not money) to a
customer who paid in advance. Ex: Magazines a company owes a customer who
bought a 12-month magazine subscription
What are some common Liabilities?
Owner's Equity (Net Assets)
The residual interest in the assets that remain of an entity after its liabilities have
been deducted. Creditors legally have first claim on the assets of a business.
Module 1 Questions and Answers 2026
Balance Sheet
a listing of an organization's assets and of its liabilities at a certain time or date.
Equity
can be thought of as the amount of the assets that the owners of the organization
can really call their own, the amount that would be left if all the liabilities were
paid off.
Balance Sheet
can be used to evaluate a company's financial position by comparing the
company's resources with its obligations.
Basic Accounting Equation
Assets = Liabilities + Owners Equity.
Assets
economic resources that are owned or controlled by a company that will provide a
probable economic future benefit.
Liquidity
the ease with which the item can be turned into cash.
Cash- Coins, currency, checks
, Accounts Receivable - Amounts owed to a company that sold goods or services to
a customer on credit
Inventory- Items that are purchased or manufactured by a company and are
resold
Buildings- Structures used in the operations of a business
What are some common assets?
Liabilities
the economic obligations of a company and include primarily the money or
services that the company owes its creditors.
Accounts Payable- Amount owed as a result of the purchase of goods and services
on credit
Taxes Payable- Amount owed to federal and state governments resulting from the
application of tax laws
Mortgage Payable- Amount owed relating to the purchase of property
Unearned Revenue- Amount owed in services or product (not money) to a
customer who paid in advance. Ex: Magazines a company owes a customer who
bought a 12-month magazine subscription
What are some common Liabilities?
Owner's Equity (Net Assets)
The residual interest in the assets that remain of an entity after its liabilities have
been deducted. Creditors legally have first claim on the assets of a business.
