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WGU D104 OBJECTIVE ASSESSMENT V1 AND V2
NEWEST 2026 TEST BANK| D104 INTERMEDIATE
ACCOUNTING II OA EXAM WITH COMPLETE 350
REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
D104 INTERMEDIATE ACCOUNTING II OA V1.
A steel manufacturer uses the production variable method for
depreciating assets. Which combination best describes the depreciation
method used?
A. Straight-line and activity
B. Double-declining balance and activity
C. Straight-line and sum-of-years'-digits
D. Double-declining balance and sum-of-years'-digits - Correct Answer -
Straight-line and activity
A company invests $15,000,000 into a coal mine estimated to have 20
million tons of coal. The coal mine is estimated to be in operation for the
next five years. In Year 1, the company extracted and sold 1 million tons
of coal. How much is depletion in Year 1?
A. $750,000
B. $1,000,000
C. $2,250,000
D. $3,000,000 - Correct Answer - $750,000
$15,000,000/20,000,000= $.75
$.75*1,000,000=$750,000
pg. 1
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A company reported total assets of $10,000,000 as of December 31,
2018, and $14,000,000 as of December 31, 2019. Net sales revenue was
$6,000,000 for the year ending December 31, 2018, and $8,000,000 for
the year ending December 31, 2019. What was the company's asset
turnover ratio for the year ending December 31, 2019?
A. 0.50
B. 0.57
C. 0.60
D. 0.67 - Correct Answer - 0.67
8,000,000/(10,000,000+14,000,000/2)
8,000,000/12,000,000=.67
A company's profit margin on sales was 2.50%, and its asset turnover
was 0.50. What was the company's return on assets for this period?
A. 0.20%
B. 1.25%
C. 5.00%
D. 125.00% - Correct Answer - 1.25%
Profit Margin on Sales*Asset Turnover
2.5*.5
A company reported the following information in its 2019 annual report:
Net sales $ 750,000
Total assets at the end of year 2 $ 500,000
Total assets at the end of year 1 $ 450,000
Net income $ 120,000
pg. 2
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What is the company's profit margin on sales?
A. 16%
B. 84%
C. 417%
D. 625% - Correct Answer - 16%
Net Income/Net Sales
$120,000/$750,000 = .16
A company reported the following information in its 2019 annual report:
Net sales $ 750,000
Total assets at the end of year 2 $ 500,000
Total assets at the end of year 1 $ 450,000
Net income $ 120,000
What is the company's return on assets?
A. 0.24
B. 0.25
C. 1.58
D. 1.67 - Correct Answer - 0.25
Net Income/Ave. Total Assets
A company placed an asset into service on Day 1 of Year 1 with the
following data related to the purchase:
Cost of machinery: $225,000
Estimated salvage value: $75,000
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Product life hours: 75,000 hours
Useful life: 5 years
Hours used in Year: 15,000 hours
Which amount of annual depreciation expense should be recorded at the
end of Year 2 using the sum-of-years'-digits method?
A. $60,000
B. $50,000
C. $30,000
D. $40,000 - Correct Answer - D. $40,000
$40,000 = ($225,000- $75,000) X 4/15. Cost minus salvage value
multiplied by the year two fraction of 4/15.
A company purchases an asset on April 5 of the current year. The
company would like to use the depreciation policy that will result in the
highest deprecation expense in the last year of its useful life. Which
depreciation policy should be used?
A. Full year in acquisition period
B. Half-year convention
C. Nearest full month
D. Nearest fraction of the year - Correct Answer - B. Half-year
convention
Half-year convention will depreciate the asset for six months in the year
of acquisition and six months in the final year of the useful life. This
policy results in the highest depreciation expense in the last year of the
useful life.
pg. 4
WGU D104 OBJECTIVE ASSESSMENT V1 AND V2
NEWEST 2026 TEST BANK| D104 INTERMEDIATE
ACCOUNTING II OA EXAM WITH COMPLETE 350
REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
D104 INTERMEDIATE ACCOUNTING II OA V1.
A steel manufacturer uses the production variable method for
depreciating assets. Which combination best describes the depreciation
method used?
A. Straight-line and activity
B. Double-declining balance and activity
C. Straight-line and sum-of-years'-digits
D. Double-declining balance and sum-of-years'-digits - Correct Answer -
Straight-line and activity
A company invests $15,000,000 into a coal mine estimated to have 20
million tons of coal. The coal mine is estimated to be in operation for the
next five years. In Year 1, the company extracted and sold 1 million tons
of coal. How much is depletion in Year 1?
A. $750,000
B. $1,000,000
C. $2,250,000
D. $3,000,000 - Correct Answer - $750,000
$15,000,000/20,000,000= $.75
$.75*1,000,000=$750,000
pg. 1
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A company reported total assets of $10,000,000 as of December 31,
2018, and $14,000,000 as of December 31, 2019. Net sales revenue was
$6,000,000 for the year ending December 31, 2018, and $8,000,000 for
the year ending December 31, 2019. What was the company's asset
turnover ratio for the year ending December 31, 2019?
A. 0.50
B. 0.57
C. 0.60
D. 0.67 - Correct Answer - 0.67
8,000,000/(10,000,000+14,000,000/2)
8,000,000/12,000,000=.67
A company's profit margin on sales was 2.50%, and its asset turnover
was 0.50. What was the company's return on assets for this period?
A. 0.20%
B. 1.25%
C. 5.00%
D. 125.00% - Correct Answer - 1.25%
Profit Margin on Sales*Asset Turnover
2.5*.5
A company reported the following information in its 2019 annual report:
Net sales $ 750,000
Total assets at the end of year 2 $ 500,000
Total assets at the end of year 1 $ 450,000
Net income $ 120,000
pg. 2
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What is the company's profit margin on sales?
A. 16%
B. 84%
C. 417%
D. 625% - Correct Answer - 16%
Net Income/Net Sales
$120,000/$750,000 = .16
A company reported the following information in its 2019 annual report:
Net sales $ 750,000
Total assets at the end of year 2 $ 500,000
Total assets at the end of year 1 $ 450,000
Net income $ 120,000
What is the company's return on assets?
A. 0.24
B. 0.25
C. 1.58
D. 1.67 - Correct Answer - 0.25
Net Income/Ave. Total Assets
A company placed an asset into service on Day 1 of Year 1 with the
following data related to the purchase:
Cost of machinery: $225,000
Estimated salvage value: $75,000
pg. 3
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Product life hours: 75,000 hours
Useful life: 5 years
Hours used in Year: 15,000 hours
Which amount of annual depreciation expense should be recorded at the
end of Year 2 using the sum-of-years'-digits method?
A. $60,000
B. $50,000
C. $30,000
D. $40,000 - Correct Answer - D. $40,000
$40,000 = ($225,000- $75,000) X 4/15. Cost minus salvage value
multiplied by the year two fraction of 4/15.
A company purchases an asset on April 5 of the current year. The
company would like to use the depreciation policy that will result in the
highest deprecation expense in the last year of its useful life. Which
depreciation policy should be used?
A. Full year in acquisition period
B. Half-year convention
C. Nearest full month
D. Nearest fraction of the year - Correct Answer - B. Half-year
convention
Half-year convention will depreciate the asset for six months in the year
of acquisition and six months in the final year of the useful life. This
policy results in the highest depreciation expense in the last year of the
useful life.
pg. 4
