WGU D774 Exam Questions with 100%
Correct Answers
Accounting Equation
An algebraic equation that expresses the relationship between assets (resources), liabilities
(obligations), and owner's equity (net assets, or the residual interest in a business after all
liabilities have been met): Assets = Liabilities + Owners' Equity.
Activity-based Costing (ABC)
A method of attributing overhead costs to products based on measurable factors that relate to
activities that create overhead costs.
Agency Problem
A conflict that arises when an agent (managemnet), who is expected to act in the best
interests of a principal (shareholders), has an incentive to act in their own best interest
instead.
Articulation
The interrelationships among the financial statements.
Assets
Economic resources that are owned or controlled by a company.
Balance Sheet
A summary of the financial position of a company at a particular date.
Board of Directors
A group of individuals elected by the stockholders to govern a corporation.
, Break-even Point
The amount of sales at which total costs of the number of units sold equal total revenues; the
point at which there is no profit or loss.
Budget
A financial spending and income plan for a defined period that outlines how a firm, an
organization, or an individual will acquire and use financial resources.
Capital
Financial assets that an individual or organization uses for investment or generating profit.
Capital Stock
The portion of stockholder's equity that represents investment by owners in exchange for
shares of stock; also referred to as paid-in capital.
Cash Budget
A schedule of expected cash receipts and disbursements during the budget period.
Cash Flow Statement
The financial statement that shows an entity's cash inflows (receipts) and outflows
(payments) during a period of time.
Certified Public Accountant (CPA)
A special designation given to an accountant who has passed a national uniform examination
and has met other certifying requirements.
Classified Balance Sheet
A balance sheet that distinguishes between current and long-term assets.
Correct Answers
Accounting Equation
An algebraic equation that expresses the relationship between assets (resources), liabilities
(obligations), and owner's equity (net assets, or the residual interest in a business after all
liabilities have been met): Assets = Liabilities + Owners' Equity.
Activity-based Costing (ABC)
A method of attributing overhead costs to products based on measurable factors that relate to
activities that create overhead costs.
Agency Problem
A conflict that arises when an agent (managemnet), who is expected to act in the best
interests of a principal (shareholders), has an incentive to act in their own best interest
instead.
Articulation
The interrelationships among the financial statements.
Assets
Economic resources that are owned or controlled by a company.
Balance Sheet
A summary of the financial position of a company at a particular date.
Board of Directors
A group of individuals elected by the stockholders to govern a corporation.
, Break-even Point
The amount of sales at which total costs of the number of units sold equal total revenues; the
point at which there is no profit or loss.
Budget
A financial spending and income plan for a defined period that outlines how a firm, an
organization, or an individual will acquire and use financial resources.
Capital
Financial assets that an individual or organization uses for investment or generating profit.
Capital Stock
The portion of stockholder's equity that represents investment by owners in exchange for
shares of stock; also referred to as paid-in capital.
Cash Budget
A schedule of expected cash receipts and disbursements during the budget period.
Cash Flow Statement
The financial statement that shows an entity's cash inflows (receipts) and outflows
(payments) during a period of time.
Certified Public Accountant (CPA)
A special designation given to an accountant who has passed a national uniform examination
and has met other certifying requirements.
Classified Balance Sheet
A balance sheet that distinguishes between current and long-term assets.
