5/31/25, 7:47 PM D103 - Intermediate Accounting –OA 2
WGU D103 Intermediate Accounting - OA2 (Units 5-7) | Questions
and Answers | 2025 Update | 100% Correct.
Correct 100
Incorrect
D103 - Intermediate Accounting - OA2 (Units 5-7)
100 Correct terms
Questions and answers
1 of 100
Definition
Ans c
Accounting Rule: Product Costs include any cost of acquiring and
producing a product. These costs include direct materials, direct labor,
and manufacturing overhead. Manufacturing overhead costs include
indirect materials, indirect labor, and various manufacturing related
costs such as depreciation, taxes, insurance, and utilities. Costs of
normal shrinkage and scrap incurred in the manufacture of a product is
,5/31/25, 7:47 PM D103 - Intermediate Accounting –OA 2
a product cost. Interest cost incurred in the production process is a
product cost, but the question would have to specifically indicate this.
Freight out is a selling cost and a period cost but freight in is a product
cost.
Give this one a go later!
Which of the following is the formula for the inventory turnover rate?
a. net sales/cost of goods sold.
b. cost of goods sold/average inventory.
c. cost of goods sold/ending Inventory.
d. average inventory/cost of goods sold.
A company made a $25,000 sale on account with the following terms: 1/15, n/30.
How much should be recorded as revenue using the gross method?
Which of the following is a product cost as it relates to inventory?
a. freight out.
b. interest costs.
c. raw materials.
d. abnormal spoilage.
The sales returns and allowances account is
a. an asset account.
b. a contra asset account.
c. expense account.
d. contra revenue account.
,5/31/25, 7:47 PM D103 - Intermediate Accounting –OA 2
Don't know?
2 of 100
Term
All of the following may be included under the heading of "cash"
except
a. currency.
b. money market funds.
c. checking account balance.
d. savings account balance.
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d. savings account balance. a. currency.
c. checking account balance. b. money market funds.
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3 of 100
Term
In a perpetual inventory system, the cost of purchases is debited to:
a. Purchases.
, 5/31/25, 7:47 PM D103 - Intermediate Accounting –OA 2
b. Cost of goods sold.
c. Inventory.
d. Accounts payable.
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Debit purchases
c. Debited to cost of goods sold.
Credit accounts payable
Debit merchandise inventory
c. Inventory.
Credit accounts payable
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4 of 100
Definition
The present value of $8,000 at the beginning of the year is $7,843. No
calculation is required.
This is a single-sum problem that requires determining the unknown
present value of a known single sum of money in the future that is
discounted for a certain number of periods at a certain interest rate.
Accounting Rule: Present value is the amount that must be invested
now to produce a known future value. It is always a smaller amount
than the given future value.
WGU D103 Intermediate Accounting - OA2 (Units 5-7) | Questions
and Answers | 2025 Update | 100% Correct.
Correct 100
Incorrect
D103 - Intermediate Accounting - OA2 (Units 5-7)
100 Correct terms
Questions and answers
1 of 100
Definition
Ans c
Accounting Rule: Product Costs include any cost of acquiring and
producing a product. These costs include direct materials, direct labor,
and manufacturing overhead. Manufacturing overhead costs include
indirect materials, indirect labor, and various manufacturing related
costs such as depreciation, taxes, insurance, and utilities. Costs of
normal shrinkage and scrap incurred in the manufacture of a product is
,5/31/25, 7:47 PM D103 - Intermediate Accounting –OA 2
a product cost. Interest cost incurred in the production process is a
product cost, but the question would have to specifically indicate this.
Freight out is a selling cost and a period cost but freight in is a product
cost.
Give this one a go later!
Which of the following is the formula for the inventory turnover rate?
a. net sales/cost of goods sold.
b. cost of goods sold/average inventory.
c. cost of goods sold/ending Inventory.
d. average inventory/cost of goods sold.
A company made a $25,000 sale on account with the following terms: 1/15, n/30.
How much should be recorded as revenue using the gross method?
Which of the following is a product cost as it relates to inventory?
a. freight out.
b. interest costs.
c. raw materials.
d. abnormal spoilage.
The sales returns and allowances account is
a. an asset account.
b. a contra asset account.
c. expense account.
d. contra revenue account.
,5/31/25, 7:47 PM D103 - Intermediate Accounting –OA 2
Don't know?
2 of 100
Term
All of the following may be included under the heading of "cash"
except
a. currency.
b. money market funds.
c. checking account balance.
d. savings account balance.
Give this one a go later!
d. savings account balance. a. currency.
c. checking account balance. b. money market funds.
Don't know?
3 of 100
Term
In a perpetual inventory system, the cost of purchases is debited to:
a. Purchases.
, 5/31/25, 7:47 PM D103 - Intermediate Accounting –OA 2
b. Cost of goods sold.
c. Inventory.
d. Accounts payable.
Give this one a go later!
Debit purchases
c. Debited to cost of goods sold.
Credit accounts payable
Debit merchandise inventory
c. Inventory.
Credit accounts payable
Don't know?
4 of 100
Definition
The present value of $8,000 at the beginning of the year is $7,843. No
calculation is required.
This is a single-sum problem that requires determining the unknown
present value of a known single sum of money in the future that is
discounted for a certain number of periods at a certain interest rate.
Accounting Rule: Present value is the amount that must be invested
now to produce a known future value. It is always a smaller amount
than the given future value.
