D102 Financial Accounting WGU
Exam/52 Q’s and A’s
What information is contained in a balance sheet? - -Financial position as of
a point in time.
- What is an owners' equity item? - -Capital Stock
- A company ended July with assets of $150,000 and owner's equity of
$60,000. What is the amount of liabilities at the end of July? - -$90,000
- What is reported in a multiple-step income statement that is not reported
in a single-step income statement? - -Gross Profit
- How is gross profit computed? - -Sales minus cost of goods sold.
- Which set is a list of all items used in computing net income? - -Sales, cost
of goods sold, and income tax expense.
- What cash flow category contains activities involving owners or creditors? -
-Financing
- Which set of items is used in computing the company's financing cash flow
for the year? - -Cash paid for dividends and cash received as new
investment from owners.
- What items are used in computing the company's ending cash balance for
the year? - -Cash balance at the beginning of the year, cash flow from
operating activities, cash flow from investing activities, and cash flow from
financing activities.
- How is revenue typically recorded with debits and credits? - -As a credit,
representing an increase in equity.
- Proper way to record an increase in an asset account and an increase in an
equity account - -Asset - debit; equity - credit
- How are expenses recorded with debits and credits? - -Debit, representing
an increase in assets
- Journal entry for inventory purchase: $5,000 total, $1,000 cash - -Credit to
accounts payable for $4,000
Exam/52 Q’s and A’s
What information is contained in a balance sheet? - -Financial position as of
a point in time.
- What is an owners' equity item? - -Capital Stock
- A company ended July with assets of $150,000 and owner's equity of
$60,000. What is the amount of liabilities at the end of July? - -$90,000
- What is reported in a multiple-step income statement that is not reported
in a single-step income statement? - -Gross Profit
- How is gross profit computed? - -Sales minus cost of goods sold.
- Which set is a list of all items used in computing net income? - -Sales, cost
of goods sold, and income tax expense.
- What cash flow category contains activities involving owners or creditors? -
-Financing
- Which set of items is used in computing the company's financing cash flow
for the year? - -Cash paid for dividends and cash received as new
investment from owners.
- What items are used in computing the company's ending cash balance for
the year? - -Cash balance at the beginning of the year, cash flow from
operating activities, cash flow from investing activities, and cash flow from
financing activities.
- How is revenue typically recorded with debits and credits? - -As a credit,
representing an increase in equity.
- Proper way to record an increase in an asset account and an increase in an
equity account - -Asset - debit; equity - credit
- How are expenses recorded with debits and credits? - -Debit, representing
an increase in assets
- Journal entry for inventory purchase: $5,000 total, $1,000 cash - -Credit to
accounts payable for $4,000
