WGU D102 FINANCIAL ACCOUNTING
FINAL EXAM |OA | LATEST UPDATED |
REAL EXAM COMPLETE QUESTIONS
AND ANSWERS | 100% RATED
CORRECT | 100% VERFIED | ALREADY
GRADED A+
Which financial statement provides a detailed explanation of one component in the
year-to-year change in the retained earnings balance?
Income statement.
Trial balance.
Statement of cash flows.
Balance sheet. - ANSWER Income statement.
Which financial statement provides a detailed explanation of the year-to-year change in
the cash account balance?
Statement of retained earnings.
Balance sheet.
Statement of cash flows.
Income statement. - ANSWER Statement of cash flows.
What is articulation? - ANSWER The relationship among financial
statements whereby an item on the income statement or statement of cash flows helps
explain the period-to-period change in an item on the balance sheet
What is a balance sheet?
- Report of the operating, investing, and financing cash flows of a company during a
period
,- Report of the total of the balances of all of a company's bank accounts
- Report of the revenues and expenses of a company during a period
- Report of the assets, liabilities, and equity of a company as of a point in time -
ANSWER Report of the assets, liabilities, and equity of a company as of a
point in time
- The balance sheet reports the resources of a company (assets), the company's
obligations (liabilities), and the difference between what is owned (assets) and what is
owed (liabilities), called owners' equity.
Which item is a liability?
- Accounts receivable
- Capital stock
- Accounts payable
- Retained earnings - ANSWER Accounts payable
- AP is the amount owed as a result of the purchase of goods and services on credit.
Which item is an owners' equity item?
- Accounts payable
- Inventory
- Retained earnings
- Accounts receivable - ANSWER Retained earnings
- Retained earnings is an owners' equity item representing the cumulative amount of
profits that the owners have kept in the business in order to buy assets. So, retained
earnings is a source of money to buy assets.
Strime Company's assets equal $104,000, and its stockholders' equity totals $68,500.
What is the amount of its liabilities?
$35,500
$104,000
$172,500
$68,500 - ANSWER $35,500
,The accounting equation is Assets = Liabilities + Equity. For Strime Company, $104,000
= Liabilities + $68,500. Rearrangement of this equation gives Liabilities = $104,000 -
$68,500 = $35,500.
The Whole Pine Company's liabilities equal $124,000, and its stockholders' equity totals
$68,500. What is the amount of its assets?
$68,500
$192,500
$124,000
$55,500 - ANSWER $192,500
The correct calculation is shown as follows: Assets = Liabilities + Equity; Assets =
$124,000 + $68,500 = $192,500
Which is the proper description of the accounting equation?
Owners' Equity = Liabilities
Assets = Liabilities + Owners' Equity
Owners' Equity = Assets
Assets = Liabilities - ANSWER Assets = Liabilities + Owners' Equity
After the effects of every transaction are considered and recorded, what must the
accounting equation do?
Equal total owner's equity
Equal total liabilities
Equal total itself, or balance
Equal total assets - ANSWER Equal total itself, or balance
After the effects of every transaction are considered and recorded, the accounting
equation must balance.
Which statement best describes the main features of inventories?
Goods used by company employees on a daily basis
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 -
ANSWER Goods purchased and held for sale
What is a classified balance sheet?
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
A balance sheet that is not publicly disclosed - ANSWER A balance sheet
that distinguishes between current and long-term assets
What does owners' equity represent?
The difference between current assets and long-term assets
The difference between total liabilities and total owners' equity
The difference between total assets and total liabilities
The difference between current liabilities and long-term liabilities - ANSWER
The difference between total assets and total liabilities
For most companies, when assets or liabilities are 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 year
The next six months
The next month - ANSWER The next year
Assets or liabilities classified as "current" are expected to be converted to cash within a
year.
What is owners' equity?
The sum of operating, investing, and financing cash flows
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
FINAL EXAM |OA | LATEST UPDATED |
REAL EXAM COMPLETE QUESTIONS
AND ANSWERS | 100% RATED
CORRECT | 100% VERFIED | ALREADY
GRADED A+
Which financial statement provides a detailed explanation of one component in the
year-to-year change in the retained earnings balance?
Income statement.
Trial balance.
Statement of cash flows.
Balance sheet. - ANSWER Income statement.
Which financial statement provides a detailed explanation of the year-to-year change in
the cash account balance?
Statement of retained earnings.
Balance sheet.
Statement of cash flows.
Income statement. - ANSWER Statement of cash flows.
What is articulation? - ANSWER The relationship among financial
statements whereby an item on the income statement or statement of cash flows helps
explain the period-to-period change in an item on the balance sheet
What is a balance sheet?
- Report of the operating, investing, and financing cash flows of a company during a
period
,- Report of the total of the balances of all of a company's bank accounts
- Report of the revenues and expenses of a company during a period
- Report of the assets, liabilities, and equity of a company as of a point in time -
ANSWER Report of the assets, liabilities, and equity of a company as of a
point in time
- The balance sheet reports the resources of a company (assets), the company's
obligations (liabilities), and the difference between what is owned (assets) and what is
owed (liabilities), called owners' equity.
Which item is a liability?
- Accounts receivable
- Capital stock
- Accounts payable
- Retained earnings - ANSWER Accounts payable
- AP is the amount owed as a result of the purchase of goods and services on credit.
Which item is an owners' equity item?
- Accounts payable
- Inventory
- Retained earnings
- Accounts receivable - ANSWER Retained earnings
- Retained earnings is an owners' equity item representing the cumulative amount of
profits that the owners have kept in the business in order to buy assets. So, retained
earnings is a source of money to buy assets.
Strime Company's assets equal $104,000, and its stockholders' equity totals $68,500.
What is the amount of its liabilities?
$35,500
$104,000
$172,500
$68,500 - ANSWER $35,500
,The accounting equation is Assets = Liabilities + Equity. For Strime Company, $104,000
= Liabilities + $68,500. Rearrangement of this equation gives Liabilities = $104,000 -
$68,500 = $35,500.
The Whole Pine Company's liabilities equal $124,000, and its stockholders' equity totals
$68,500. What is the amount of its assets?
$68,500
$192,500
$124,000
$55,500 - ANSWER $192,500
The correct calculation is shown as follows: Assets = Liabilities + Equity; Assets =
$124,000 + $68,500 = $192,500
Which is the proper description of the accounting equation?
Owners' Equity = Liabilities
Assets = Liabilities + Owners' Equity
Owners' Equity = Assets
Assets = Liabilities - ANSWER Assets = Liabilities + Owners' Equity
After the effects of every transaction are considered and recorded, what must the
accounting equation do?
Equal total owner's equity
Equal total liabilities
Equal total itself, or balance
Equal total assets - ANSWER Equal total itself, or balance
After the effects of every transaction are considered and recorded, the accounting
equation must balance.
Which statement best describes the main features of inventories?
Goods used by company employees on a daily basis
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 -
ANSWER Goods purchased and held for sale
What is a classified balance sheet?
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
A balance sheet that is not publicly disclosed - ANSWER A balance sheet
that distinguishes between current and long-term assets
What does owners' equity represent?
The difference between current assets and long-term assets
The difference between total liabilities and total owners' equity
The difference between total assets and total liabilities
The difference between current liabilities and long-term liabilities - ANSWER
The difference between total assets and total liabilities
For most companies, when assets or liabilities are 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 year
The next six months
The next month - ANSWER The next year
Assets or liabilities classified as "current" are expected to be converted to cash within a
year.
What is owners' equity?
The sum of operating, investing, and financing cash flows
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
