WGU D102 FINANCIAL ACCOUNTING OBJECTIVE ASSESSMENT (OA) COMPREHENSIVE ACTUAL FINAL ACTUAL EXAM PREP 2026 ALL QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES ALREADY A GRADED WITH EXPERT FEEDBACK |CURRENTLY TESTING |NEW AND REVISED

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WGU D102 FINANCIAL ACCOUNTING OBJECTIVE
ASSESSMENT (OA) COMPREHENSIVE ACTUAL
FINAL ACTUAL EXAM PREP 2026 ALL QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES ALREADY A GRADED WITH EXPERT
FEEDBACK |CURRENTLY TESTING |NEW AND
REVISED



1. Which of the following best describes the accounting equation?
 A) Assets = Liabilities − Owner's Equity
 B) Assets + Liabilities = Owner's Equity
 C) Assets = Liabilities + Owner's Equity
 D) Assets + Owner's Equity = Liabilities
Rationale: The accounting equation is the foundation of double-entry
accounting: Assets = Liabilities + Owner's Equity. This equation must
always balance, and every transaction affects at least two accounts to
maintain this equality. Options A, B, and D incorrectly rearrange the
components of the equation.
2. A company purchases equipment for $10,000 cash. Which of the
following is the correct effect on the accounting equation?
 A) Assets increase by $10,000 and liabilities increase by $10,000
 B) One asset increases and another asset decreases, with total
assets unchanged
 C) Assets increase by $10,000 and owner's equity increases by
$10,000

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 D) Assets decrease by $10,000 and liabilities decrease by $10,000
Rationale: Purchasing equipment for cash involves exchanging one
asset (cash) for another asset (equipment). Cash decreases by $10,000
and Equipment increases by $10,000, leaving total assets unchanged.
There is no effect on liabilities or owner's equity. This is an asset
exchange transaction.
3. A company performs services on account for $5,000. Which accounts
are affected?
 A) Cash increases and Service Revenue increases
 B) Accounts Receivable increases and Service Revenue
increases
 C) Cash increases and Accounts Receivable decreases
 D) Service Revenue increases and Accounts Payable increases
Rationale: Performing services on account means the company has
earned revenue but has not yet received cash. Accounts Receivable (an
asset) increases by $5,000, and Service Revenue (owner's equity)
increases by $5,000. Cash is not affected until the customer pays later.
4. A company pays $2,000 for rent expense. Which of the following is
the correct journal entry?
 A) Debit Cash $2,000; Credit Rent Expense $2,000
 B) Debit Rent Expense $2,000; Credit Cash $2,000
 C) Debit Rent Expense $2,000; Credit Accounts Payable $2,000
 D) Debit Prepaid Rent $2,000; Credit Cash $2,000
Rationale: Paying rent expense decreases cash and increases rent
expense. The correct journal entry is to debit Rent Expense (an
expense account, which decreases owner's equity) and credit Cash (an

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asset account). Expenses are increased with debits, and assets are
decreased with credits.
5. Which of the following is a permanent (real) account?
 A) Service Revenue
 B) Rent Expense
 C) Accounts Payable
 D) Dividends
Rationale: Permanent (real) accounts are balance sheet accounts that
carry their balances forward to the next accounting period. Accounts
Payable is a liability account and is permanent. Service Revenue (A),
Rent Expense (B), and Dividends (D) are temporary (nominal)
accounts that are closed at the end of the period.
6. Which of the following is a temporary (nominal) account?
 A) Cash
 B) Accounts Receivable
 C) Salaries Expense
 D) Common Stock
Rationale: Temporary (nominal) accounts are income statement
accounts and dividend accounts that are closed to Retained Earnings
at the end of the period. Salaries Expense is a temporary account.
Cash (A), Accounts Receivable (B), and Common Stock (D) are
permanent accounts.
7. A company has $50,000 in assets and $20,000 in liabilities. What is
the owner's equity?
 A) $70,000
 B) $30,000

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 C) $20,000
 D) $50,000
Rationale: Using the accounting equation: Assets = Liabilities +
Owner's Equity. Therefore, Owner's Equity = Assets − Liabilities =
$50,000 − $20,000 = $30,000.
8. A company borrows $15,000 from a bank by signing a note payable.
Which of the following is the correct effect on the accounting equation?
 A) Assets increase by $15,000 and owner's equity increases by
$15,000
 B) Assets increase by $15,000 and liabilities increase by
$15,000
 C) Assets decrease by $15,000 and liabilities increase by $15,000
 D) Assets increase by $15,000 and owner's equity decreases by
$15,000
Rationale: Borrowing money increases Cash (an asset) and increases
Notes Payable (a liability) by $15,000. The accounting equation
remains balanced because both sides increase equally. There is no
effect on owner's equity.
9. The normal balance of an asset account is a:
 A) Credit
 B) Debit
 C) Either debit or credit depending on the transaction
 D) Zero balance
Rationale: Asset accounts have a normal debit balance, meaning
increases are recorded as debits and decreases as credits. Liabilities
and owner's equity accounts have normal credit balances. Revenue