WGU D774 INTRODUCTION TO BUSINESS
ACCOUNTING EXAM COMPREHENSIVE EXAM
SCRIPT 2026 SOLVED QUESTIONS WITH
CORRECT ANSWERS
◉ Tax basis. Answer: An accounting method that follows tax laws for
reporting income and expenses.
◉ Modified cash basis. Answer: An accounting method that
combines aspects of cash basis and accrual basis accounting.
◉ Accrual basis. Answer: An accounting method where revenue is
recorded when earned and expenses are recorded when incurred,
regardless of cash flow.
◉ Net cash flows. Answer: The difference between cash inflows and
cash outflows over a period.
◉ Financing activities. Answer: Transactions that result in changes
in the size and composition of the equity capital and borrowings of
the entity.
, ◉ Operating activities. Answer: The primary revenue-generating
activities of the business and other activities that are not investing
or financing activities.
◉ Investing activities. Answer: Transactions involving the purchase
and sale of physical and financial investments.
◉ Non-cash investing and financing transactions. Answer: Investing
and financing activities that do not involve cash.
◉ Cash sales of inventory to customers. Answer: Revenue generated
from selling goods directly for cash.
◉ Repayment of debt to the bank in cash. Answer: Cash outflow
resulting from paying back borrowed funds.
◉ Core business. Answer: The main activities or operations that a
company engages in to generate revenue.
◉ Change in cash balance. Answer: The difference in cash at the
beginning and end of a period.
◉ Revenue recognition. Answer: The accounting principle that
dictates when revenue is recognized in the financial statements.
ACCOUNTING EXAM COMPREHENSIVE EXAM
SCRIPT 2026 SOLVED QUESTIONS WITH
CORRECT ANSWERS
◉ Tax basis. Answer: An accounting method that follows tax laws for
reporting income and expenses.
◉ Modified cash basis. Answer: An accounting method that
combines aspects of cash basis and accrual basis accounting.
◉ Accrual basis. Answer: An accounting method where revenue is
recorded when earned and expenses are recorded when incurred,
regardless of cash flow.
◉ Net cash flows. Answer: The difference between cash inflows and
cash outflows over a period.
◉ Financing activities. Answer: Transactions that result in changes
in the size and composition of the equity capital and borrowings of
the entity.
, ◉ Operating activities. Answer: The primary revenue-generating
activities of the business and other activities that are not investing
or financing activities.
◉ Investing activities. Answer: Transactions involving the purchase
and sale of physical and financial investments.
◉ Non-cash investing and financing transactions. Answer: Investing
and financing activities that do not involve cash.
◉ Cash sales of inventory to customers. Answer: Revenue generated
from selling goods directly for cash.
◉ Repayment of debt to the bank in cash. Answer: Cash outflow
resulting from paying back borrowed funds.
◉ Core business. Answer: The main activities or operations that a
company engages in to generate revenue.
◉ Change in cash balance. Answer: The difference in cash at the
beginning and end of a period.
◉ Revenue recognition. Answer: The accounting principle that
dictates when revenue is recognized in the financial statements.
