Final Exam for;
WGU D102 Financial
Accounting
** Expert-Verified Explanation
** Questions with Verified Answer
** New Edition |Updated
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** 100% Correct Answers | Graded A+
,What is a balance sheet? Report of the assets, liabilities, and equity of a company as of a point in time
Report of the total of the balances of all of a company's
bank accounts
Report of the assets, liabilities, and equity of a company
as of a point in time
Report of the revenues and expenses of a company
during a period
Report of the operating, investing, and financing cash
flows of a company during a period
Which item is a liability? Accounts payable
Accounts payable
Retained earnings
Accounts receivable
Capital stock
Which item is an owners' equity item? Retained earnings
Accounts payable
Accounts receivable
Retained earnings
Inventory
Strime Company's assets equal $104,000, and its $35,500
stockholders' equity totals $68,500.
What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000
The Whole Pine Company's liabilities equal $124,000, $192,500
and its stockholders' equity totals $68,500. What is the
amount of its assets?
$55,500
$124,000
$68,500
$192,500
Which is the proper description of the accounting Assets = Liabilities + Owners' Equity
equation?
Owners' Equity = Assets
Assets = Liabilities + Owners' Equity
Assets = Liabilities
Owners' Equity = Liabilities
After the effects of every transaction are considered and Equal itself, or balance
recorded, what must the accounting equation do?
Equal itself, or balance
Equal total owners' equity
Equal total liabilities
Equal total assets
Which statement best describes the main features of Goods purchased and held for sale
inventories?
Goods due from customers who have purchased on
account
Goods purchased and held for sale
Goods used by a company on a long-term basis, usually
more than five years
Goods used by company employees on a daily basis
,What is a classified balance sheet? A balance sheet that distinguishes between current and long-term assets
A balance sheet that is not publicly disclosed
A balance sheet that distinguishes between current and
long-term assets
A balance sheet that is for a period of time rather than as
of a point in time
A balance sheet that separates liabilities from equities
What does owners' equity represent? The difference between total assets and total liabilities
The difference between total assets and total liabilities
The difference between current assets and long-term
assets
The difference between total liabilities and total owners'
equity
The difference between current liabilities and long-term
liabilities
For most companies, when assets or liabilities are The next year
classified as "current" on the balance sheet, it generally
means the related assets or liabilities will be turned into
cash or will be required to be paid, respectively, within
what time frame?
The next quarter
The next six months
The next month
The next year
What is owners' equity? A residual amount representing the net assets available after all obligations have
been satisfied
An economic resource that is owned or controlled by a
company
An obligation to pay cash, transfer other assets, or
provide services to someone else
A residual amount representing the net assets available
after all obligations have been satisfied
The sum of operating, investing, and financing cash
flows
Which item is an asset? Accounts receivable
Accounts receivable
Capital stock
Retained earnings
Accounts payable
According to the accounting equation, what is the correct Total Assets - Liabilities
computation of owners' equity?
Total Assets + Liabilities
Total Assets - Liabilities
Cash + Bank Loan Balance
Cash - Bank Loan Balance
What is an accurate description of accounts payable? Obligation arising from the purchase of inventory on account
Obligation arising from the purchase of inventory on
account
Obligation arising from the sale of office supplies on
account
Obligation arising from the payment of income taxes on
account
Obligation arising from the sale of equipment on account
, Bullzai Company's financial records include these Cash, accounts receivable, and inventory
accounts at the end of the year:
Land
Accounts Receivable
Buildings
Inventory
Loans Payable
Accounts Payable
Retained Earnings
Capital Stock
Cash
Which set of items composes a complete listing of
Bullzai's current assets?
Cash, retained earnings, and capital stock
Cash, buildings, and land
Cash, accounts receivable, and inventory
Cash, inventory, and capital stock
What is bad debt expense? Amount of uncollectible accounts created by credit sales during the year
Amount of uncollectible accounts created by credit sales
during the year
Amount of inventory lost, stolen, or sold during the year
Amount of gross profit divided by sales for the year
Amount of wear and tear on long-lived assets during the
year
Which item is an expense item? Cost of Goods Sold
Cost of Goods Sold
Sales
Cash
Accounts Payable
What is a single-step income statement? Groups and total revenues/groups and total expenses
Emphasizes separate computation of gross profit and
operating income
Groups and total revenues/groups and total expenses
Omits both interest expense and income tax expense
Includes all other expenses, but omits income tax
expense
What is "gross profit"? Sales − Cost of Goods Sold.
Sales − Cost of Goods Sold.
Accounts Receivable − Accounts Payable
Total Assets − Total Liabilities
Total Revenues − Total Expenses
What is a company's gross profit percentage? Gross Profit ÷ Sales
Net Income ÷ Owners' Equity
Gross Profit ÷ Sales
Net Income ÷ Sales
Gross Profit ÷ Net Income
Which item is a revenue item? Sales
Accounts Receivable
Cash
Loan Payable
Sales
What is an income statement? Report of the revenues and expenses of a company during a period
Report of the total of the balances of all of a company's bank accounts
Report of the assets, liabilities, and equity of a company
as of a point in time
Report of the operating, investing, and financing cash
flows of a company during a period
Report of the revenues and expenses of a company
during a period
Report of the total of the balances of all of a company's
bank accounts
WGU D102 Financial
Accounting
** Expert-Verified Explanation
** Questions with Verified Answer
** New Edition |Updated
** Guaranteed Pass
** 100% Correct Answers | Graded A+
,What is a balance sheet? Report of the assets, liabilities, and equity of a company as of a point in time
Report of the total of the balances of all of a company's
bank accounts
Report of the assets, liabilities, and equity of a company
as of a point in time
Report of the revenues and expenses of a company
during a period
Report of the operating, investing, and financing cash
flows of a company during a period
Which item is a liability? Accounts payable
Accounts payable
Retained earnings
Accounts receivable
Capital stock
Which item is an owners' equity item? Retained earnings
Accounts payable
Accounts receivable
Retained earnings
Inventory
Strime Company's assets equal $104,000, and its $35,500
stockholders' equity totals $68,500.
What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000
The Whole Pine Company's liabilities equal $124,000, $192,500
and its stockholders' equity totals $68,500. What is the
amount of its assets?
$55,500
$124,000
$68,500
$192,500
Which is the proper description of the accounting Assets = Liabilities + Owners' Equity
equation?
Owners' Equity = Assets
Assets = Liabilities + Owners' Equity
Assets = Liabilities
Owners' Equity = Liabilities
After the effects of every transaction are considered and Equal itself, or balance
recorded, what must the accounting equation do?
Equal itself, or balance
Equal total owners' equity
Equal total liabilities
Equal total assets
Which statement best describes the main features of Goods purchased and held for sale
inventories?
Goods due from customers who have purchased on
account
Goods purchased and held for sale
Goods used by a company on a long-term basis, usually
more than five years
Goods used by company employees on a daily basis
,What is a classified balance sheet? A balance sheet that distinguishes between current and long-term assets
A balance sheet that is not publicly disclosed
A balance sheet that distinguishes between current and
long-term assets
A balance sheet that is for a period of time rather than as
of a point in time
A balance sheet that separates liabilities from equities
What does owners' equity represent? The difference between total assets and total liabilities
The difference between total assets and total liabilities
The difference between current assets and long-term
assets
The difference between total liabilities and total owners'
equity
The difference between current liabilities and long-term
liabilities
For most companies, when assets or liabilities are The next year
classified as "current" on the balance sheet, it generally
means the related assets or liabilities will be turned into
cash or will be required to be paid, respectively, within
what time frame?
The next quarter
The next six months
The next month
The next year
What is owners' equity? A residual amount representing the net assets available after all obligations have
been satisfied
An economic resource that is owned or controlled by a
company
An obligation to pay cash, transfer other assets, or
provide services to someone else
A residual amount representing the net assets available
after all obligations have been satisfied
The sum of operating, investing, and financing cash
flows
Which item is an asset? Accounts receivable
Accounts receivable
Capital stock
Retained earnings
Accounts payable
According to the accounting equation, what is the correct Total Assets - Liabilities
computation of owners' equity?
Total Assets + Liabilities
Total Assets - Liabilities
Cash + Bank Loan Balance
Cash - Bank Loan Balance
What is an accurate description of accounts payable? Obligation arising from the purchase of inventory on account
Obligation arising from the purchase of inventory on
account
Obligation arising from the sale of office supplies on
account
Obligation arising from the payment of income taxes on
account
Obligation arising from the sale of equipment on account
, Bullzai Company's financial records include these Cash, accounts receivable, and inventory
accounts at the end of the year:
Land
Accounts Receivable
Buildings
Inventory
Loans Payable
Accounts Payable
Retained Earnings
Capital Stock
Cash
Which set of items composes a complete listing of
Bullzai's current assets?
Cash, retained earnings, and capital stock
Cash, buildings, and land
Cash, accounts receivable, and inventory
Cash, inventory, and capital stock
What is bad debt expense? Amount of uncollectible accounts created by credit sales during the year
Amount of uncollectible accounts created by credit sales
during the year
Amount of inventory lost, stolen, or sold during the year
Amount of gross profit divided by sales for the year
Amount of wear and tear on long-lived assets during the
year
Which item is an expense item? Cost of Goods Sold
Cost of Goods Sold
Sales
Cash
Accounts Payable
What is a single-step income statement? Groups and total revenues/groups and total expenses
Emphasizes separate computation of gross profit and
operating income
Groups and total revenues/groups and total expenses
Omits both interest expense and income tax expense
Includes all other expenses, but omits income tax
expense
What is "gross profit"? Sales − Cost of Goods Sold.
Sales − Cost of Goods Sold.
Accounts Receivable − Accounts Payable
Total Assets − Total Liabilities
Total Revenues − Total Expenses
What is a company's gross profit percentage? Gross Profit ÷ Sales
Net Income ÷ Owners' Equity
Gross Profit ÷ Sales
Net Income ÷ Sales
Gross Profit ÷ Net Income
Which item is a revenue item? Sales
Accounts Receivable
Cash
Loan Payable
Sales
What is an income statement? Report of the revenues and expenses of a company during a period
Report of the total of the balances of all of a company's bank accounts
Report of the assets, liabilities, and equity of a company
as of a point in time
Report of the operating, investing, and financing cash
flows of a company during a period
Report of the revenues and expenses of a company
during a period
Report of the total of the balances of all of a company's
bank accounts
