WGU D102 | PRE ASSESSMENT | QUESTIONS AND
ANSWERS | GRADED A+
What information is contained in a balance sheet? - Answers - Report of a company's
financial position as of a point in time.
What is an owners' equity item? - Answers - Capital stock
A company ended July with assets of $150,000 and owner's equity of $60,000.
What is the amount of liabilities at the end of July? - Answers - $90,000
What is reported in a multiple-step income statement that is not reported in a single-step
income statement? - Answers - Gross profit
How is gross profit computed? - Answers - Sales minus cost of goods sold.
The following are some accounts from a company's financial statements:
accounts receivable
cost of goods sold
cash
retained earnings
sales
inventory
income tax expense
accounts payable
Which set is a list of all of the items that are used in computing this company's net
income? - Answers - Sales, cost of goods sold, and income tax expense.
What cash flow category contains activities whereby cash is obtained from or repaid to
owners or creditors? - Answers - Financing
Here are some financial statement items for the year for a company.
Cash received from customers
Cash received from the sale of land
Cash paid for dividends
Cash paid to employees for wages
Cash paid to purchase a new building
Cash paid for rent
Cash received as new investment from owners
Which set of items is a list of items that are used in computing the company's financing
cash flow for the year? - Answers - Cash paid for dividends and cash received as new
investment from owners.
, Here are some financial statement items for a company.
Net income
Cash flow from financing activities
Cash balance at the beginning of the year
Sales Cash flow from investing activities
Accounts receivable
Retained earnings at the beginning of the year
Cash flow from operating activities
What items are used in computing the company's ending cash balance for the year? -
Answers - Cash balance at the beginning of the year, cash flow from operating
activities, cash flow from investing activities, and cash flow from financing activities.
How is revenue typically recorded with debits and credits? - Answers - As a credit,
representing an increase in equity.
What is the proper way to record an increase in an asset account and an increase in an
equity account? - Answers - Asset, debit; equity, credit
A company was started last year when the shareholders invested $70,000 cash into it.
At that time, the company also borrowed $100,000 cash from a local bank. The
company used $140,000 cash to purchase inventory for $140,000. This year the
company sold all of the inventory for $95,000 cash (and that is not a typographical error;
the amount received for all of the inventory was only $95,000 cash).
Which account balance is correct with respect to this company's balance sheet after the
sale of the inventory? - Answers - Total owners' equity is $25,000.
On January 1, a company had these assets, liabilities, and equities:
Cash $100
Inventory $140
Accounts payable $70
Paid-in capital $150
Retained earnings $20
During the year, the company entered into these transactions:
Selling inventory costing $140 for a total of $200; cash of $30 was received, and the
remaining $170 was put on account.
Paying cash for rent of $45.
Paying cash dividends of $30.
What is this company's total equity at the end of the year? - Answers - $155
A company made a $3,000 cash payment on a loan. Of the $3,000 cash paid, $2,400
was for interest expense and $600 was a payment to reduce the loan balance.
What is included in the journal entry necessary to record this loan payment? - Answers -
Debit to interest expense for $2,400.
A company was started last year when the shareholders invested $70 cash into the
company. At that time, the organization also borrowed $30 cash from a local bank. The
ANSWERS | GRADED A+
What information is contained in a balance sheet? - Answers - Report of a company's
financial position as of a point in time.
What is an owners' equity item? - Answers - Capital stock
A company ended July with assets of $150,000 and owner's equity of $60,000.
What is the amount of liabilities at the end of July? - Answers - $90,000
What is reported in a multiple-step income statement that is not reported in a single-step
income statement? - Answers - Gross profit
How is gross profit computed? - Answers - Sales minus cost of goods sold.
The following are some accounts from a company's financial statements:
accounts receivable
cost of goods sold
cash
retained earnings
sales
inventory
income tax expense
accounts payable
Which set is a list of all of the items that are used in computing this company's net
income? - Answers - Sales, cost of goods sold, and income tax expense.
What cash flow category contains activities whereby cash is obtained from or repaid to
owners or creditors? - Answers - Financing
Here are some financial statement items for the year for a company.
Cash received from customers
Cash received from the sale of land
Cash paid for dividends
Cash paid to employees for wages
Cash paid to purchase a new building
Cash paid for rent
Cash received as new investment from owners
Which set of items is a list of items that are used in computing the company's financing
cash flow for the year? - Answers - Cash paid for dividends and cash received as new
investment from owners.
, Here are some financial statement items for a company.
Net income
Cash flow from financing activities
Cash balance at the beginning of the year
Sales Cash flow from investing activities
Accounts receivable
Retained earnings at the beginning of the year
Cash flow from operating activities
What items are used in computing the company's ending cash balance for the year? -
Answers - Cash balance at the beginning of the year, cash flow from operating
activities, cash flow from investing activities, and cash flow from financing activities.
How is revenue typically recorded with debits and credits? - Answers - As a credit,
representing an increase in equity.
What is the proper way to record an increase in an asset account and an increase in an
equity account? - Answers - Asset, debit; equity, credit
A company was started last year when the shareholders invested $70,000 cash into it.
At that time, the company also borrowed $100,000 cash from a local bank. The
company used $140,000 cash to purchase inventory for $140,000. This year the
company sold all of the inventory for $95,000 cash (and that is not a typographical error;
the amount received for all of the inventory was only $95,000 cash).
Which account balance is correct with respect to this company's balance sheet after the
sale of the inventory? - Answers - Total owners' equity is $25,000.
On January 1, a company had these assets, liabilities, and equities:
Cash $100
Inventory $140
Accounts payable $70
Paid-in capital $150
Retained earnings $20
During the year, the company entered into these transactions:
Selling inventory costing $140 for a total of $200; cash of $30 was received, and the
remaining $170 was put on account.
Paying cash for rent of $45.
Paying cash dividends of $30.
What is this company's total equity at the end of the year? - Answers - $155
A company made a $3,000 cash payment on a loan. Of the $3,000 cash paid, $2,400
was for interest expense and $600 was a payment to reduce the loan balance.
What is included in the journal entry necessary to record this loan payment? - Answers -
Debit to interest expense for $2,400.
A company was started last year when the shareholders invested $70 cash into the
company. At that time, the organization also borrowed $30 cash from a local bank. The
