WGU D102 FINANCIAL ACCOUNTING
UPDATED ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS
●● What is an owners' equity item?
Accounts receivable
Loans payable
Capital stock
Cash
Answer: 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?
Answer: $90,000
●● What is reported in a multiple-step income statement that is not
reported in a single-step income statement?
Answer: Gross Profit
●● How is gross profit computed?
, Answer: 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?
Answer: 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?
Answer: 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
UPDATED ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS
●● What is an owners' equity item?
Accounts receivable
Loans payable
Capital stock
Cash
Answer: 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?
Answer: $90,000
●● What is reported in a multiple-step income statement that is not
reported in a single-step income statement?
Answer: Gross Profit
●● How is gross profit computed?
, Answer: 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?
Answer: 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?
Answer: 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
