WGU D102 FINANCIAL ACCOUNTING 64
COMPREHENSIVE STUDY GUIDE
◉ Which item is a liability?
Accounts payable
Retained earnings
Accounts receivable
Capital stock.
Answer: Accounts payable
◉ Which item is an owners' equity item?
Accounts payable
Accounts receivable
Retained earnings
Inventory.
Answer: Retained earnings
◉ Strime Company's assets equal $104,000, and its stockholders'
equity totals $68,500.
,What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000.
Answer: $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?
$55,500
$124,000
$68,500
$192,500.
Answer: $192,500
◉ Which is the proper description of the accounting equation?
Owners' Equity = Assets
,Assets = Liabilities + Owners' Equity
Assets = Liabilities
Owners' Equity = Liabilities.
Answer: Assets = Liabilities + Owners' Equity
◉ After the effects of every transaction are considered and recorded,
what must the accounting equation do?
Equal itself, or balance
Equal total owners' equity
Equal total liabilities
Equal total assets.
Answer: Equal itself, or balance
◉ Which statement best describes the main features of 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.
Answer: Goods purchased and held for sale
, ◉ What is a classified balance sheet?
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.
Answer: A balance sheet that distinguishes between current and
long-term assets
◉ What does owners' equity represent?
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.
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
COMPREHENSIVE STUDY GUIDE
◉ Which item is a liability?
Accounts payable
Retained earnings
Accounts receivable
Capital stock.
Answer: Accounts payable
◉ Which item is an owners' equity item?
Accounts payable
Accounts receivable
Retained earnings
Inventory.
Answer: Retained earnings
◉ Strime Company's assets equal $104,000, and its stockholders'
equity totals $68,500.
,What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000.
Answer: $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?
$55,500
$124,000
$68,500
$192,500.
Answer: $192,500
◉ Which is the proper description of the accounting equation?
Owners' Equity = Assets
,Assets = Liabilities + Owners' Equity
Assets = Liabilities
Owners' Equity = Liabilities.
Answer: Assets = Liabilities + Owners' Equity
◉ After the effects of every transaction are considered and recorded,
what must the accounting equation do?
Equal itself, or balance
Equal total owners' equity
Equal total liabilities
Equal total assets.
Answer: Equal itself, or balance
◉ Which statement best describes the main features of 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.
Answer: Goods purchased and held for sale
, ◉ What is a classified balance sheet?
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.
Answer: A balance sheet that distinguishes between current and
long-term assets
◉ What does owners' equity represent?
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.
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
