WGU D102 PRE-ASSESSMENT EXAM
(ACTUAL 2025) WITH SOLUTIONS
Proper segregation of duties requires that one person
not perform three specific separate functions with
respect to a single transaction. Two of those functions
are authorization and record keeping.
What is the third function that should be performed by a
different person if proper segregation of duties is to be
maintained? - <<<Answers>>>Custody of assets
Why are daily cash deposits important? -
<<<Answers>>>They prevent the accumulation of a
large amount of cash.
On July 10, goods were sold for $10,000. Cash of
$4,000 was received, and the $6,000 remainder was on
account. The customer returned the goods before paying
any of the remaining $6,000 on account.
Which debit or credit should be included in the journal
entry on the seller's books to record the return of the
goods? - <<<Answers>>>Credit accounts receivable
for $6,000
On January 1 of Year 1, a company purchased a
machine for $20,000. The machine is expected to have
, WGU D102 PRE-ASSESSMENT EXAM (Actual
2025)WITH SOLUTIONS
a 10-year useful life and a salvage value of $1,000. The
company uses straight-line depreciation.
What is the book value of this machine at the end of
Year 6? - <<<Answers>>>$8,600
On January 1 of Year 1, a company purchased a
machine for $10,000. The machine is expected to have
a five-year useful life and a salvage value of $2,000.
The company uses double-declining balance
depreciation.
What is the amount of depreciation expense on this
machine for Year 2? - <<<Answers>>>$2,400
On January 1 of Year 1, a company purchased a patent
for $400,000. The patent had an original legal life of 20
years, but only eight years remained on the date the
patent was purchased. The patent is expected to have
continuing economic value during this eight years. The
patent is assumed to have zero salvage value at the end
of its economic useful life. The company uses straight-
line amortization.
What is the book value of this patent at the end of Year
3? - <<<Answers>>>$250,000
, WGU D102 PRE-ASSESSMENT EXAM (Actual
2025)WITH SOLUTIONS
How does a company report an externally purchased
trademark in its financial statements? -
<<<Answers>>>As an asset in the balance sheet
A company purchased a patent from another company
for $5,000 cash.
What is needed in the journal entry to record this patent
purchase? - <<<Answers>>>Debit to patent for $5,000
On January 1 of Year 1, a company purchased a
franchise for $100,000. The franchise is expected to
have a 20-year economic useful life. The franchise is
assumed to have zero salvage value at the end of its
economic useful life. The company uses straight-line
amortization.
What is needed in the journal entry to record
amortization expense on this franchise at the end of
Year 1? - <<<Answers>>>Credit to franchise for
$5,000
The following are payroll data for the employees of a
company:
Salaries Withholding Taxes Payable $20,000
Salaries Payable 400,000
(ACTUAL 2025) WITH SOLUTIONS
Proper segregation of duties requires that one person
not perform three specific separate functions with
respect to a single transaction. Two of those functions
are authorization and record keeping.
What is the third function that should be performed by a
different person if proper segregation of duties is to be
maintained? - <<<Answers>>>Custody of assets
Why are daily cash deposits important? -
<<<Answers>>>They prevent the accumulation of a
large amount of cash.
On July 10, goods were sold for $10,000. Cash of
$4,000 was received, and the $6,000 remainder was on
account. The customer returned the goods before paying
any of the remaining $6,000 on account.
Which debit or credit should be included in the journal
entry on the seller's books to record the return of the
goods? - <<<Answers>>>Credit accounts receivable
for $6,000
On January 1 of Year 1, a company purchased a
machine for $20,000. The machine is expected to have
, WGU D102 PRE-ASSESSMENT EXAM (Actual
2025)WITH SOLUTIONS
a 10-year useful life and a salvage value of $1,000. The
company uses straight-line depreciation.
What is the book value of this machine at the end of
Year 6? - <<<Answers>>>$8,600
On January 1 of Year 1, a company purchased a
machine for $10,000. The machine is expected to have
a five-year useful life and a salvage value of $2,000.
The company uses double-declining balance
depreciation.
What is the amount of depreciation expense on this
machine for Year 2? - <<<Answers>>>$2,400
On January 1 of Year 1, a company purchased a patent
for $400,000. The patent had an original legal life of 20
years, but only eight years remained on the date the
patent was purchased. The patent is expected to have
continuing economic value during this eight years. The
patent is assumed to have zero salvage value at the end
of its economic useful life. The company uses straight-
line amortization.
What is the book value of this patent at the end of Year
3? - <<<Answers>>>$250,000
, WGU D102 PRE-ASSESSMENT EXAM (Actual
2025)WITH SOLUTIONS
How does a company report an externally purchased
trademark in its financial statements? -
<<<Answers>>>As an asset in the balance sheet
A company purchased a patent from another company
for $5,000 cash.
What is needed in the journal entry to record this patent
purchase? - <<<Answers>>>Debit to patent for $5,000
On January 1 of Year 1, a company purchased a
franchise for $100,000. The franchise is expected to
have a 20-year economic useful life. The franchise is
assumed to have zero salvage value at the end of its
economic useful life. The company uses straight-line
amortization.
What is needed in the journal entry to record
amortization expense on this franchise at the end of
Year 1? - <<<Answers>>>Credit to franchise for
$5,000
The following are payroll data for the employees of a
company:
Salaries Withholding Taxes Payable $20,000
Salaries Payable 400,000
