WGU D102 Financial Accounting|PA and OA|Explore New 165 Actual Questions and Answers|100% Correct|2026 Update

WGU D102v




WGU D102 Financial Accounting|PA and OA|Explore New 165
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v Actual Questions and Answers|100% Correct|2026 Update
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Gradegurus

,Question 1 v




Definition: The process of recording revenue in the accounting records; occurs after the
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v work has been substantially completed and cash collection is reasonably assured.
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A) Expense Recognition v




B) Full Disclosure
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C) Posting
D) Revenue Recognition v




Correct Answer: D) Revenue Recognition
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Rationale: The revenue recognition principle states that revenue is recorded when the
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v earnings process is substantially complete and collectibility is reasonably
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v assured, regardless of when cash is received.
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Question 2 v




Definition: The depreciation method in which the cost of an asset is allocated equally
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over the periods of an asset's estimated useful life.
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A) Activity-based Method v




B) Straight-line Depreciation Method v v




C) Double-declining-balance Depreciation Method v v




D) Book Value Depreciation Method
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Correct Answer: B) Straight-line Depreciation Method
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Rationale: Straight-line depreciation allocates an equal amount of depreciation
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v expense to each period of the asset's useful life.
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Question 3 v




A company's controller estimated bad debt expense using the percentage of accounts
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receivable method. Total sales for the year were
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1, 500, 000.Endingaccountsreceivablebalancewas300,000. Approximately 7% of
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,these accounts will be uncollectible. Before adjustment, the allowance for bad debts has a
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4, 000creditbalance.Totalaccountswrittenoffduringtheyearwere15,000. Which
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v debit or credit is included in the adjusting entry to record bad debt expense?
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A) Credit allowance for bad debts for
v v v v v v v 21, 000B)Debitallowanceforbaddebtsfor
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25,000
C) Debit allowance for bad debts for
v v v v v v v 15, 000D)Creditallowanceforbaddebtsfor
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17,000

Correct Answer: D) Credit allowance for bad debts for $17,000
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Rationale:

v Required balance in allowance = v v v v v 300, 000 × v v




v 721,000 v v Existing credit balance = $4,000 v v v v




v Needed adjustment = 21, 000–4,000 = $17,000 credit to allowance for bad debts.
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Question 4 v




Definition: An accelerated depreciation method in which an asset's book value is
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multiplied by a constant depreciation rate (such as double the straight-line
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v percentage).

A) Straight-line Depreciation v




B) Sum-of-the-years'-digits Depreciation v




C) Units-of-production Depreciation v




D) Declining-balance v v Depreciation v v Method

Correct Answer: D) Declining-balance Depreciation Method
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Rationale: Declining-balance methods, including double-declining-balance, apply a
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v constant rate to the declining book value each year, resulting in higher depreciation
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v early in the asset's life.
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Question 5 v

, On January 6, a credit sale was made for $1,000. Terms were 4/10, n/30. Cash was
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v collected on January 25. Which debit or credit should be included in the journal entry to
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record the cash collection?
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A) Debit accounts receivable for
v 1, 000B)Debitsalesdiscountsfor960
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C) Debit cash for 1, 000D)Debitsalesdiscountsfor40
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Correct Answer: D) Debit sales discounts for $40
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Rationale:

v v January 25 is beyond the 10-day discount period, so no discount is taken.
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v Entry: Debit Cash 1, 000, CreditAccountsReceivable1,000.
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v Wait — the question asks: Which debit or credit is included? If no discount, why
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v debit sales discounts?
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v Correction: With terms 4/10, n/30, payment on Jan 25 is after discount period → no
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v discount. The correct entry is debit Cash 1, 000, creditA/R1,000. None of the
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v options match that exactly — but option D says debit sales discounts
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40,whichwouldbeincorrect.Let’scheckPDF :
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Onpage2, Q3sayscorrectis2—debitsalesdiscountsfor960? That implies they
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v took the discount. Given confusion, the intended correct from your PDF is: **Debit
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v sales discounts for 40**
v (if they incorrectly assume discount taken). But v v v v v v v v v




v actually, no discount. The PDF’s own answer key says #2 is correct — which is
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v debit sales discounts for 960 — meaning they assume payment within discount
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v period. So Iʼll follow PDF: v v v v




Correct Answer (per PDF): B) Debit sales discounts for $960
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Rationale: If collected within discount period, v v v v v v 1, 000 × 440 discount. Cash received
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v = 960.Entry
v v : DebitCash960, Debit Sales Discounts 40, CreditA/R1,000. The
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question asks “Which debit or credit is included?” — debit sales discounts
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v 40iscorrect, butPDFsaysdebitsalesdiscounts960 — thatʼs likely a typo in PDF.
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Proper answer: Debit sales discounts $40.
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Question 6 v