WGU D102 FINANCIAL ACCOUNTING FINAL OA
REVIEW MODULE 4 EXAM 50 QUESTIONS WITH
VERIFIED ANSWERS 2025/2026
The discipline imposed by this numerical structure helps a person consider all
dimensions of the impact of an event on the financial statements. This process is
called - CORRECT ANSWER Transaction Analysis
Businesses buy and sell goods or services; borrow and invest money; pay wages to
employees; purchase land, buildings, and equipment; distribute earnings to
owners; and pay taxes to the government. These activities are referred to as -
CORRECT ANSWER "exchange transactions" because the entity is actually trading
(exchanging) one thing for another.
___________such as a sales invoice, a purchase order, or a check stub, are often
used to confirm that a transaction has occurred, to establish the amounts to be
recorded, and to facilitate the analysis of business events. - CORRECT ANSWER
Business documents
What are the 4 steps in the Accounting Cycle? - CORRECT ANSWER 1. Analyze
Transactions
2. Record the effects of the transactions
3. Summarize the effects: Post Journal Entry, Prepare Trial Balance
4. Prepare Reports: Adjusting entries, Financial statements, Closing the books
Items reported in the financial statements have to be reported in monetary units
such as the dollar - CORRECT ANSWER Monetary Measurement Concept
, Start a business by investing $50,000 cash. - CORRECT ANSWER Debit Cash
$50,000
Credit Owner's Equity (Capital Stock) $50,000
Borrowed $25,000 from bank - CORRECT ANSWER Debit Cash $25,000
Credit Liabilities $25,000
Purchased Inventory on credit for $14,000 - CORRECT ANSWER Debit Inventory
$14,000
Credit Accounts Payable $14,000
Purchased equipment costing $15,000 for cash - CORRECT ANSWER Debit
Equipment $15,000
Credit Cash $15,000
a specific accounting record that provides an efficient way to categorize similar
transactions. - CORRECT ANSWER account
Revenues increase owners' equity and so, like all owners' equity accounts, are
increased by - CORRECT ANSWER credits
Expenses reduce owners' equity and are therefore increased by - CORRECT
ANSWER debits
REVIEW MODULE 4 EXAM 50 QUESTIONS WITH
VERIFIED ANSWERS 2025/2026
The discipline imposed by this numerical structure helps a person consider all
dimensions of the impact of an event on the financial statements. This process is
called - CORRECT ANSWER Transaction Analysis
Businesses buy and sell goods or services; borrow and invest money; pay wages to
employees; purchase land, buildings, and equipment; distribute earnings to
owners; and pay taxes to the government. These activities are referred to as -
CORRECT ANSWER "exchange transactions" because the entity is actually trading
(exchanging) one thing for another.
___________such as a sales invoice, a purchase order, or a check stub, are often
used to confirm that a transaction has occurred, to establish the amounts to be
recorded, and to facilitate the analysis of business events. - CORRECT ANSWER
Business documents
What are the 4 steps in the Accounting Cycle? - CORRECT ANSWER 1. Analyze
Transactions
2. Record the effects of the transactions
3. Summarize the effects: Post Journal Entry, Prepare Trial Balance
4. Prepare Reports: Adjusting entries, Financial statements, Closing the books
Items reported in the financial statements have to be reported in monetary units
such as the dollar - CORRECT ANSWER Monetary Measurement Concept
, Start a business by investing $50,000 cash. - CORRECT ANSWER Debit Cash
$50,000
Credit Owner's Equity (Capital Stock) $50,000
Borrowed $25,000 from bank - CORRECT ANSWER Debit Cash $25,000
Credit Liabilities $25,000
Purchased Inventory on credit for $14,000 - CORRECT ANSWER Debit Inventory
$14,000
Credit Accounts Payable $14,000
Purchased equipment costing $15,000 for cash - CORRECT ANSWER Debit
Equipment $15,000
Credit Cash $15,000
a specific accounting record that provides an efficient way to categorize similar
transactions. - CORRECT ANSWER account
Revenues increase owners' equity and so, like all owners' equity accounts, are
increased by - CORRECT ANSWER credits
Expenses reduce owners' equity and are therefore increased by - CORRECT
ANSWER debits
