WGU D103 INTERMEDIATE ACCOUNTING I OA
|ACTUAL QUESTIONS AND VERIFIED ANSWERS
|BRAND NEW 2026-2027 UPDATE|GRADED A+
Question 1
External decision makers would not look primarily to financial accounting information to
assist them in making decisions related to:
A. The purchase of stocks and bonds
B. Compensation of company executives
C. Making loans to the company
D. Estimates of the potential for future profits
CORRECT ANSWER
B. Compensation of company executives
Question 2
Which of the following is not true about net operating cash flow?
A. It is a measure used in accrual accounting and is recognized as the best predictor of future
operating cash flows.
B. It is easy to understand and all information required to measure it is factual
C. Over short periods of time, it may not be indicative of long-run cash-generating ability
D. It is the difference between cash receipts and cash disbursements from providing goods
and services
CORRECT ANSWER
A. It is a measure used in accrual accounting and is recognized as the best predictor of
future operating cash flows.
1
,Question 3
Porite Company recognizes revenue in the period in which its records an asset for the
related accounts receivable, rather than in the period in which the account receivable is
collected in cash. Porite's practice is an example of:
A. Accrual accounting
B. Cash basis accounting
C. Economic entity
D. The matching principle
CORRECT ANSWER
A. Accrual accounting
Question 4
In a recent annual report, Apple Computer reported the following in ones of its disclosure
notes: "Warranty Expense: The Company provides currently for the estimated cost for
product warranties at the time the related revenue is recognized." this note exemplifies
Apple's use of:
A. Matching
B. Conservatism
C. Revenue recognition
D. Economic entity
CORRECT ANSWER
A. Matching
Question 5
GAAP is an abbreveation for:
A. Generally authorized accounting procedures
B. Generally accepted auditing practices
2
, C. Generally applied accounting procedures
D. Generally accepted accounting principles
CORRECT ANSWER
D. Generally accepted accounting principles
Question 6
The FASB's standard-setting process includes, in the correct order:
CORRECT ANSWER
Research, discussion paper, exposure draft, Accounting Standards Update
Question 7
Independent auditors express an opinion on the:
CORRECT ANSWER
Fairness of financial statements
Question 8
The possibility that the capital markets' focus on periodic profits may tempt a company's
management to bend or even break accounting rules to inflate reported net income as an
example of:
CORRECT ANSWER
An ethical dilemma
Question 9
3
|ACTUAL QUESTIONS AND VERIFIED ANSWERS
|BRAND NEW 2026-2027 UPDATE|GRADED A+
Question 1
External decision makers would not look primarily to financial accounting information to
assist them in making decisions related to:
A. The purchase of stocks and bonds
B. Compensation of company executives
C. Making loans to the company
D. Estimates of the potential for future profits
CORRECT ANSWER
B. Compensation of company executives
Question 2
Which of the following is not true about net operating cash flow?
A. It is a measure used in accrual accounting and is recognized as the best predictor of future
operating cash flows.
B. It is easy to understand and all information required to measure it is factual
C. Over short periods of time, it may not be indicative of long-run cash-generating ability
D. It is the difference between cash receipts and cash disbursements from providing goods
and services
CORRECT ANSWER
A. It is a measure used in accrual accounting and is recognized as the best predictor of
future operating cash flows.
1
,Question 3
Porite Company recognizes revenue in the period in which its records an asset for the
related accounts receivable, rather than in the period in which the account receivable is
collected in cash. Porite's practice is an example of:
A. Accrual accounting
B. Cash basis accounting
C. Economic entity
D. The matching principle
CORRECT ANSWER
A. Accrual accounting
Question 4
In a recent annual report, Apple Computer reported the following in ones of its disclosure
notes: "Warranty Expense: The Company provides currently for the estimated cost for
product warranties at the time the related revenue is recognized." this note exemplifies
Apple's use of:
A. Matching
B. Conservatism
C. Revenue recognition
D. Economic entity
CORRECT ANSWER
A. Matching
Question 5
GAAP is an abbreveation for:
A. Generally authorized accounting procedures
B. Generally accepted auditing practices
2
, C. Generally applied accounting procedures
D. Generally accepted accounting principles
CORRECT ANSWER
D. Generally accepted accounting principles
Question 6
The FASB's standard-setting process includes, in the correct order:
CORRECT ANSWER
Research, discussion paper, exposure draft, Accounting Standards Update
Question 7
Independent auditors express an opinion on the:
CORRECT ANSWER
Fairness of financial statements
Question 8
The possibility that the capital markets' focus on periodic profits may tempt a company's
management to bend or even break accounting rules to inflate reported net income as an
example of:
CORRECT ANSWER
An ethical dilemma
Question 9
3
