WGU D102 Financial Accounting EXAM
|\ |\ |\ |\ |\
QUESTIONS WITH ANSWERS |\ |\
What is a balance sheet?
|\ |\ |\ |\
Report of the total of the balances of all of a company's bank
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
accounts
Report of the assets, liabilities, and equity of a company as of a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
point in time
|\ |\
Report of the revenues and expenses of a company during a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
period
Report of the operating, investing, and financing cash flows of a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
company during a period - CORRECT ANSWERS ✔✔Report of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
assets, liabilities, and equity of a company as of a point in time
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Which item is a liability?
|\ |\ |\ |\
Accounts payable |\
Retained earnings |\
Accounts receivable |\
Capital stock - CORRECT ANSWERS ✔✔Accounts payable
|\ |\ |\ |\ |\ |\
Which item is an owners' equity item?
|\ |\ |\ |\ |\ |\
,Accounts payable |\
Accounts receivable |\
Retained earnings |\
Inventory - CORRECT ANSWERS ✔✔Retained earnings
|\ |\ |\ |\ |\
Strime Company's assets equal $104,000, and its stockholders'
|\ |\ |\ |\ |\ |\ |\ |\
equity totals $68,500.
|\ |\
What is the amount of its liabilities?
|\ |\ |\ |\ |\ |\
$35,500
$172,500
$68,500
$104,000 - CORRECT ANSWERS ✔✔$35,500
|\ |\ |\ |\
The Whole Pine Company's liabilities equal $124,000, and its
|\ |\ |\ |\ |\ |\ |\ |\ |\
stockholders' equity totals $68,500. What is the amount of its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
assets?
$55,500
$124,000
$68,500
$192,500 - CORRECT ANSWERS ✔✔$192,500
|\ |\ |\ |\
Which is the proper description of the accounting equation?
|\ |\ |\ |\ |\ |\ |\ |\
,Owners' Equity = Assets |\ |\ |\
Assets = Liabilities + Owners' Equity
|\ |\ |\ |\ |\
Assets = Liabilities
|\ |\
Owners' Equity = Liabilities - CORRECT ANSWERS ✔✔Assets =
|\ |\ |\ |\ |\ |\ |\ |\ |\
Liabilities + Owners' Equity |\ |\ |\
After the effects of every transaction are considered and
|\ |\ |\ |\ |\ |\ |\ |\ |\
recorded, what must the accounting equation do?
|\ |\ |\ |\ |\ |\
Equal itself, or balance
|\ |\ |\
Equal total owners' equity
|\ |\ |\
Equal total liabilities
|\ |\
Equal total assets - CORRECT ANSWERS ✔✔Equal itself, or
|\ |\ |\ |\ |\ |\ |\ |\ |\
balance
Which statement best describes the main features of inventories?
|\ |\ |\ |\ |\ |\ |\ |\
Goods due from customers who have purchased on account
|\ |\ |\ |\ |\ |\ |\ |\
Goods purchased and held for sale
|\ |\ |\ |\ |\
Goods used by a company on a long-term basis, usually more
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
than five years
|\ |\
Goods used by company employees on a daily basis - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Goods purchased and held for sale
|\ |\ |\ |\ |\ |\
What is a classified balance sheet?
|\ |\ |\ |\ |\
, A balance sheet that is not publicly disclosed
|\ |\ |\ |\ |\ |\ |\
A balance sheet that distinguishes between current and long-
|\ |\ |\ |\ |\ |\ |\ |\
term assets |\
A balance sheet that is for a period of time rather than as of a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
point in time |\ |\
A balance sheet that separates liabilities from equities -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔A balance sheet that distinguishes |\ |\ |\ |\ |\ |\ |\
between current and long-term assets |\ |\ |\ |\
What does owners' equity represent?
|\ |\ |\ |\
The difference between total assets and total liabilities
|\ |\ |\ |\ |\ |\ |\
The difference between current assets and long-term assets
|\ |\ |\ |\ |\ |\ |\
The difference between total liabilities and total owners' equity
|\ |\ |\ |\ |\ |\ |\ |\
The difference between current liabilities and long-term liabilities
|\ |\ |\ |\ |\ |\ |\
- CORRECT ANSWERS ✔✔The difference between total assets
|\ |\ |\ |\ |\ |\ |\ |\ |\
and total liabilities
|\ |\
For most companies, when assets or liabilities are classified as
|\ |\ |\ |\ |\ |\ |\ |\ |\
"current" on the balance sheet, it generally means the related
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
assets or liabilities will be turned into cash or will be required to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
be paid, respectively, within what time frame?
|\ |\ |\ |\ |\ |\
The next quarter |\ |\
The next six months |\ |\ |\
The next month |\ |\
|\ |\ |\ |\ |\
QUESTIONS WITH ANSWERS |\ |\
What is a balance sheet?
|\ |\ |\ |\
Report of the total of the balances of all of a company's bank
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
accounts
Report of the assets, liabilities, and equity of a company as of a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
point in time
|\ |\
Report of the revenues and expenses of a company during a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
period
Report of the operating, investing, and financing cash flows of a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
company during a period - CORRECT ANSWERS ✔✔Report of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
assets, liabilities, and equity of a company as of a point in time
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Which item is a liability?
|\ |\ |\ |\
Accounts payable |\
Retained earnings |\
Accounts receivable |\
Capital stock - CORRECT ANSWERS ✔✔Accounts payable
|\ |\ |\ |\ |\ |\
Which item is an owners' equity item?
|\ |\ |\ |\ |\ |\
,Accounts payable |\
Accounts receivable |\
Retained earnings |\
Inventory - CORRECT ANSWERS ✔✔Retained earnings
|\ |\ |\ |\ |\
Strime Company's assets equal $104,000, and its stockholders'
|\ |\ |\ |\ |\ |\ |\ |\
equity totals $68,500.
|\ |\
What is the amount of its liabilities?
|\ |\ |\ |\ |\ |\
$35,500
$172,500
$68,500
$104,000 - CORRECT ANSWERS ✔✔$35,500
|\ |\ |\ |\
The Whole Pine Company's liabilities equal $124,000, and its
|\ |\ |\ |\ |\ |\ |\ |\ |\
stockholders' equity totals $68,500. What is the amount of its
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
assets?
$55,500
$124,000
$68,500
$192,500 - CORRECT ANSWERS ✔✔$192,500
|\ |\ |\ |\
Which is the proper description of the accounting equation?
|\ |\ |\ |\ |\ |\ |\ |\
,Owners' Equity = Assets |\ |\ |\
Assets = Liabilities + Owners' Equity
|\ |\ |\ |\ |\
Assets = Liabilities
|\ |\
Owners' Equity = Liabilities - CORRECT ANSWERS ✔✔Assets =
|\ |\ |\ |\ |\ |\ |\ |\ |\
Liabilities + Owners' Equity |\ |\ |\
After the effects of every transaction are considered and
|\ |\ |\ |\ |\ |\ |\ |\ |\
recorded, what must the accounting equation do?
|\ |\ |\ |\ |\ |\
Equal itself, or balance
|\ |\ |\
Equal total owners' equity
|\ |\ |\
Equal total liabilities
|\ |\
Equal total assets - CORRECT ANSWERS ✔✔Equal itself, or
|\ |\ |\ |\ |\ |\ |\ |\ |\
balance
Which statement best describes the main features of inventories?
|\ |\ |\ |\ |\ |\ |\ |\
Goods due from customers who have purchased on account
|\ |\ |\ |\ |\ |\ |\ |\
Goods purchased and held for sale
|\ |\ |\ |\ |\
Goods used by a company on a long-term basis, usually more
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
than five years
|\ |\
Goods used by company employees on a daily basis - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Goods purchased and held for sale
|\ |\ |\ |\ |\ |\
What is a classified balance sheet?
|\ |\ |\ |\ |\
, A balance sheet that is not publicly disclosed
|\ |\ |\ |\ |\ |\ |\
A balance sheet that distinguishes between current and long-
|\ |\ |\ |\ |\ |\ |\ |\
term assets |\
A balance sheet that is for a period of time rather than as of a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
point in time |\ |\
A balance sheet that separates liabilities from equities -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔A balance sheet that distinguishes |\ |\ |\ |\ |\ |\ |\
between current and long-term assets |\ |\ |\ |\
What does owners' equity represent?
|\ |\ |\ |\
The difference between total assets and total liabilities
|\ |\ |\ |\ |\ |\ |\
The difference between current assets and long-term assets
|\ |\ |\ |\ |\ |\ |\
The difference between total liabilities and total owners' equity
|\ |\ |\ |\ |\ |\ |\ |\
The difference between current liabilities and long-term liabilities
|\ |\ |\ |\ |\ |\ |\
- CORRECT ANSWERS ✔✔The difference between total assets
|\ |\ |\ |\ |\ |\ |\ |\ |\
and total liabilities
|\ |\
For most companies, when assets or liabilities are classified as
|\ |\ |\ |\ |\ |\ |\ |\ |\
"current" on the balance sheet, it generally means the related
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
assets or liabilities will be turned into cash or will be required to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
be paid, respectively, within what time frame?
|\ |\ |\ |\ |\ |\
The next quarter |\ |\
The next six months |\ |\ |\
The next month |\ |\
