Page |1
WGU D196 OBJECTIVE ASSESSMENT FINAL EXAM
VERSION 1 2025/2026 NEWEST ACTUAL EXAM WITH
COMPLETE QUESTIONS AND VERIFIED ANSWERS
|ALREADY GRADED A+|
After Oliver records each transaction, how should he ensure that
the accounting equation remains in balance? - ANSWER-Add up
the balances in all of the asset accounts and compare them to the
sum of all the liability and owners' equity accounts
Because Assets = Liabilities + Owners' Equity, this is the correct
way to determine the equality of the accounting equation.
After determining the company's financial position, Oliver
recommends that the company borrow money from the bank for
the next accounting period.
What is the effect of borrowing money from the bank for the next
accounting period on the company's books? - ANSWER-Cash (an
asset) and a liability account both increase.
, Page |2
This transaction brings more cash into the company by increasing
the company's liability to the bank.
Which account is an example of a liability? - ANSWER-Accounts
payable
Accounts payable is a liability because it represents resources
that require repayment.
Which of the primary financial statements reports the amount of
cash collected and paid out by a company? - ANSWER-
Statement of cash flows
The statement of cash flows is one of the three primary financial
statements. The statement of cash flows reports the amount of
cash collected and paid out by a company in the following three
types of activities: operating, investing, and financing.
What is the name for the authoritative set of accounting standards
in the United States? - ANSWER-GAAP
, Page |3
This stands for generally accepted accounting principles.
Which statement is a correct description of the IASB? - ANSWER-
It establishes international accounting standards.
The IASB establishes worldwide accounting standards. The IASB
is a private organization based in London. Currently, the IASB
does not have legal authority to set accounting standards for U.S.
companies, although the SEC does allow the use of IASB
standards for non-U.S. companies with shares traded on U.S.
stock exchanges. The IASB is a standalone organization
(overseen by a Board of Trustees); it is not under the jurisdiction
of the SEC, the European Union, the United Nations, or any other
governmental body.
Which action is part of the financial accounting cycle? - ANSWER-
Summarizing financial information in financial statements
Collecting, analyzing, and summarizing financial information are
the main processes in the financial accounting cycle.
, Page |4
What is owners' equity? - ANSWER-The remaining claim to the
assets of a business after liabilities have been deducted
This is the definition of owners' equity.
Most businesses have a systematic method for analyzing
transactions and collecting and recording transaction-related
information. This transformation process is which part of
accounting? - ANSWER-The accounting cycle
This is the definition of the accounting cycle.
Which event is an example of collecting, analyzing, and
summarizing accounting information? - ANSWER-Gathering
checkbook information
Gathering checkbook information involves collecting, analyzing,
and summarizing transactions.
WGU D196 OBJECTIVE ASSESSMENT FINAL EXAM
VERSION 1 2025/2026 NEWEST ACTUAL EXAM WITH
COMPLETE QUESTIONS AND VERIFIED ANSWERS
|ALREADY GRADED A+|
After Oliver records each transaction, how should he ensure that
the accounting equation remains in balance? - ANSWER-Add up
the balances in all of the asset accounts and compare them to the
sum of all the liability and owners' equity accounts
Because Assets = Liabilities + Owners' Equity, this is the correct
way to determine the equality of the accounting equation.
After determining the company's financial position, Oliver
recommends that the company borrow money from the bank for
the next accounting period.
What is the effect of borrowing money from the bank for the next
accounting period on the company's books? - ANSWER-Cash (an
asset) and a liability account both increase.
, Page |2
This transaction brings more cash into the company by increasing
the company's liability to the bank.
Which account is an example of a liability? - ANSWER-Accounts
payable
Accounts payable is a liability because it represents resources
that require repayment.
Which of the primary financial statements reports the amount of
cash collected and paid out by a company? - ANSWER-
Statement of cash flows
The statement of cash flows is one of the three primary financial
statements. The statement of cash flows reports the amount of
cash collected and paid out by a company in the following three
types of activities: operating, investing, and financing.
What is the name for the authoritative set of accounting standards
in the United States? - ANSWER-GAAP
, Page |3
This stands for generally accepted accounting principles.
Which statement is a correct description of the IASB? - ANSWER-
It establishes international accounting standards.
The IASB establishes worldwide accounting standards. The IASB
is a private organization based in London. Currently, the IASB
does not have legal authority to set accounting standards for U.S.
companies, although the SEC does allow the use of IASB
standards for non-U.S. companies with shares traded on U.S.
stock exchanges. The IASB is a standalone organization
(overseen by a Board of Trustees); it is not under the jurisdiction
of the SEC, the European Union, the United Nations, or any other
governmental body.
Which action is part of the financial accounting cycle? - ANSWER-
Summarizing financial information in financial statements
Collecting, analyzing, and summarizing financial information are
the main processes in the financial accounting cycle.
, Page |4
What is owners' equity? - ANSWER-The remaining claim to the
assets of a business after liabilities have been deducted
This is the definition of owners' equity.
Most businesses have a systematic method for analyzing
transactions and collecting and recording transaction-related
information. This transformation process is which part of
accounting? - ANSWER-The accounting cycle
This is the definition of the accounting cycle.
Which event is an example of collecting, analyzing, and
summarizing accounting information? - ANSWER-Gathering
checkbook information
Gathering checkbook information involves collecting, analyzing,
and summarizing transactions.
