WGU D103 PRE-ASSESSMENT
INTERMEDIATE ACCOUNTING FINAL PAPER
2026 COMPLETE ANSWERS AND STUDY
GUIDE ACCOUNTING PRINCIPLES
MASTERPACK
◉ deferrals understate or overstate stockholder's equity?
Answer: understate
◉ adjusting entry for accrued revenues
Answer: debit asset, credit revenue
◉ adjusting entry for accrued expenses
Answer: debit expense, credit liability
◉ accruals (blank) liabilities and interest expense
Answer: understate
◉ accruals (blank) net income and stockholders' equity
Answer: overstate
, ◉ The accounting period is the calendar year.
Employees are paid every Friday for the five-day week ending on
that day.
Salaries amount to $4,000 per week.
The accounting period ends on a Tuesday.
Using the information given above, what is the necessary adjusting
entry at December 31, 2020?
Answer: Debit Salaries & Wages Expense, Credit Salaries & Wages
Payable; $1,600
◉ Cost of Goods Sold, Salaries & Wages, Depreciation, Utilities,
Interest, and Advertising are ALL
Answer: expenses
◉ Which approach does income reporting follow?
Answer: modified all-inclusive concept where companies record
most items, including unusual or infrequent ones, as part of net
income. In addition, companies are required to highlight these items
in the financial statements so that users can better determine the
long-run earning power of the company.
◉ merchandise inventory balance is used to calculate
Answer: the Cost of Goods (not a selling expense)
INTERMEDIATE ACCOUNTING FINAL PAPER
2026 COMPLETE ANSWERS AND STUDY
GUIDE ACCOUNTING PRINCIPLES
MASTERPACK
◉ deferrals understate or overstate stockholder's equity?
Answer: understate
◉ adjusting entry for accrued revenues
Answer: debit asset, credit revenue
◉ adjusting entry for accrued expenses
Answer: debit expense, credit liability
◉ accruals (blank) liabilities and interest expense
Answer: understate
◉ accruals (blank) net income and stockholders' equity
Answer: overstate
, ◉ The accounting period is the calendar year.
Employees are paid every Friday for the five-day week ending on
that day.
Salaries amount to $4,000 per week.
The accounting period ends on a Tuesday.
Using the information given above, what is the necessary adjusting
entry at December 31, 2020?
Answer: Debit Salaries & Wages Expense, Credit Salaries & Wages
Payable; $1,600
◉ Cost of Goods Sold, Salaries & Wages, Depreciation, Utilities,
Interest, and Advertising are ALL
Answer: expenses
◉ Which approach does income reporting follow?
Answer: modified all-inclusive concept where companies record
most items, including unusual or infrequent ones, as part of net
income. In addition, companies are required to highlight these items
in the financial statements so that users can better determine the
long-run earning power of the company.
◉ merchandise inventory balance is used to calculate
Answer: the Cost of Goods (not a selling expense)
