WGU D774
WGU D774 Intro to Business Accounting Exam Bank
(Objective Assessment) Update, Questions & Answers
(Verified Answers) || Complete A+ Guide
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,WGU D774 Intro to Business Accounting Exam Bank
Question 1
Who selects a corporation's board of directors?
✅ Shareholders of the corporation
Employees of the corporation
Banks that have lent money to
the corporation Securities and
Exchange Commission
Explanation: In a corporation, the shareholders (owners) elect the board of
directors. The board's role is to oversee management and
represent the owners' interests.
Question 2
Alliah Company's financial records include these
accounts at the end of the year.
Land
Accounts
Receivable
Buildings
Inventory
Loans Payable
Accounts
Payable
Retained
Earnings
Capital Stock (also called
Paid-in Capital) Cash
,Which set of items is a complete listing of Alliah's current assets?
Cash, buildings, and land
Cash, retained earnings, and
capital stock Cash, inventory,
and capital stock
✅ Cash, accounts receivable, and inventory
Explanation: Current assets are assets expected to be
converted to cash, sold, or used within one year. From the
list, the current assets are:
Cash
Accounts
Receivable
Inventory
Buildings and land are long-term assets (property, plant,
equipment). Retained earnings and capital stock are equity
accounts, not assets.
Question 3
Which measurement is highlighted in the multi-step
format for the income statement?
Cash from operations
✅ Operating income
Owners' equity
Retained
earnings
Explanation: The multi-step income statement separates
operating activities from non-operating activities. It highlights
operating income (also called income from operations) by
calculating gross profit, then subtracting operating expenses
to
show this key subtotal before including non-operating items.
, Question 4
Synesthor manufactures music headphones. Which cost
is a product cost for Synesthor?
Salary of the chief financial officer
✅ Wages paid to the headphone assemblers who work on the production line
Commissions paid to company salespeople
Wages paid to employees in the company's advertising department
Explanation: Product costs are costs incurred to
manufacture a product. They include:
WGU D774 Intro to Business Accounting Exam Bank
(Objective Assessment) Update, Questions & Answers
(Verified Answers) || Complete A+ Guide
Gradegurus
➢
➢
➢
➢
➢
,WGU D774 Intro to Business Accounting Exam Bank
Question 1
Who selects a corporation's board of directors?
✅ Shareholders of the corporation
Employees of the corporation
Banks that have lent money to
the corporation Securities and
Exchange Commission
Explanation: In a corporation, the shareholders (owners) elect the board of
directors. The board's role is to oversee management and
represent the owners' interests.
Question 2
Alliah Company's financial records include these
accounts at the end of the year.
Land
Accounts
Receivable
Buildings
Inventory
Loans Payable
Accounts
Payable
Retained
Earnings
Capital Stock (also called
Paid-in Capital) Cash
,Which set of items is a complete listing of Alliah's current assets?
Cash, buildings, and land
Cash, retained earnings, and
capital stock Cash, inventory,
and capital stock
✅ Cash, accounts receivable, and inventory
Explanation: Current assets are assets expected to be
converted to cash, sold, or used within one year. From the
list, the current assets are:
Cash
Accounts
Receivable
Inventory
Buildings and land are long-term assets (property, plant,
equipment). Retained earnings and capital stock are equity
accounts, not assets.
Question 3
Which measurement is highlighted in the multi-step
format for the income statement?
Cash from operations
✅ Operating income
Owners' equity
Retained
earnings
Explanation: The multi-step income statement separates
operating activities from non-operating activities. It highlights
operating income (also called income from operations) by
calculating gross profit, then subtracting operating expenses
to
show this key subtotal before including non-operating items.
, Question 4
Synesthor manufactures music headphones. Which cost
is a product cost for Synesthor?
Salary of the chief financial officer
✅ Wages paid to the headphone assemblers who work on the production line
Commissions paid to company salespeople
Wages paid to employees in the company's advertising department
Explanation: Product costs are costs incurred to
manufacture a product. They include:
