WGUl D104l Pre-l Assessmentl V1–l
Intermediatel Accountingl IIl (Latestl 2026/l
2027l Update)l 100%l Verifiedl Questionsl &l
Answersl |l Gradel A
Q:l Netl Sales:l 750,000
Totall Assetsl atl thel endl ofl yearl 2:l 500,000
Totall Assetsl atl thel endl ofl yearl 1:l 450,000
Netl Income:l 120,000
Whatl isl thel company'sl profitl marginl onl sales?
Answer:
Thel profitl marginl onl salesl isl 16%.
l Thisl isl calculatedl byl dividingl netl incomel ($120,000)l byl netl salesl ($750,000),l resultingl
inl $120,000l /l $750,000l =l 0.16l orl 16%,l perl GAAP.
Q:l Netl Sales:l 750,000
Totall Assetsl atl thel endl ofl yearl 2:l 500,000
Totall assetsl atl thel endl ofl yearl 1:l 450,000
Netl Income:l 120,000l
Whatl isl thel company'sl returnl onl assets?
Answer:
Thel returnl onl assetsl isl 0.25.
l Thisl isl calculatedl byl dividingl netl incomel ($120,000)l byl thel averagel totall assetsl
(($500,000l +l $450,000)l /l 2l =l $475,000),l resultingl inl $120,000l /l $475,000l =l 0.2526,l
whichl roundsl tol 0.25,l perl GAAP.
,Q:l Al locall restaurantl hasl takenl al $40,000l loanl froml theirl bank.l
Thel restaurantl mustl repayl thel borrowedl fundsl inl 8l monthsl withl 3%l interest.l
Howl shouldl thel restaurantl recordl thel loan?
Answer:
Thel restaurantl shouldl debitl Cashl forl $40,000l andl creditl Notesl Payablel forl $40,000l tol
recordl thel loan.l
Thel 3%l interestl ($1,200l =l $40,000l ×l 3%)l willl bel recordedl asl interestl expensel overl
thel 8-monthl term,l notl atl thel loan'sl inception,l perl GAAP.
Q:l Onl Januaryl 1,l al companyl receivedl 24,000l inl advancel forl monthlyl pestl servicesl
forl thel year.l
Whichl entryl shouldl thel companyl usel tol recordl thel monthl ofl May'sl revenue?
Answer:
Thel companyl shouldl debitl Unearnedl Revenuel forl $2,000l andl creditl Servicel Revenuel
forl $2,000l tol recordl May'sl revenue.
l Thisl reflectsl onel month'sl portionl ofl thel annuall advancel ($24,000l ÷l 12l =l $2,000),l perl
GAAP.
Q:l Whichl amountl froml thel followingl shouldl bel includedl asl currentl liabilitiesl onl thel
balancel sheetl forl al companyl who'sl normall operatingl cyclel isl onel year,l andl theyl havel
thel followingl accountl balancesl takenl froml thel triall balance:l
A/P:l 50,000
A/R:l 25,000
Notesl Payablel (duel inl 30l months):l 15,000l
Customerl advances:l 10,000l
Bondsl Payablel (duel inl 60l months):l 30,000
Salesl taxl payable:l $5,000
Answer:
, Thel amountl includedl asl currentl liabilitiesl onl thel balancel sheetl isl $65,000.l
Thisl includesl Accountsl Payablel ($50,000),l Customerl Advancesl ($10,000),l andl Salesl Taxl
Payablel ($5,000),l asl theyl arel duel withinl onel year,l perl GAAP.
Q:l Al manufacturingl companyl producedl 900l itemsl thisl year.l Byl Decemberl 31,l 850l ofl
thel itemsl werel sold.l Thel companyl alsol sellsl anl extendedl warrantyl atl al costl ofl $50l
perl item.l Warrantiesl werel purchasedl onl 725l ofl thel items.l Thel companyl incurredl andl
paidl anl averagel ofl $35l perl iteml warrantyl expensel thisl year.l
Whichl amountl ofl unearnedl warrantyl revenuel shouldl bel recordedl atl thel timel ofl thel
sale?
Answer:
Thel unearnedl warrantyl revenuel recordedl atl thel timel ofl salel isl $36,250.l
Thisl isl calculatedl asl 725l warrantiesl soldl atl $50l eachl (725l ×l $50l =l $36,250),l perl
GAAP.
Q:l Whatl isl thel requiredl presentationl andl disclosurel requiredl forl lawsuitsl whenl legall
counsell believesl itl isl probablel thatl al corporationl willl losel thel lawsuitl andl thel lossl isl
estimatedl tol bel 500,000?
Answer:
Whenl legall counsell believesl itl isl probablel thatl al corporationl willl losel al lawsuitl andl
thel lossl isl estimatedl atl $500,000,l GAAPl requiresl thel companyl tol recognizel al liabilityl
ofl $500,000l inl thel financiall statementsl andl disclosel thel naturel ofl thel lawsuit,l thel
estimatedl loss,l andl anyl potentiall rangel ofl lossl inl thel notes.
l Thisl ensuresl transparentl reportingl ofl thel probablel lossl andl itsl financiall impact.
Q:l Cashl 150,000l
Short-terml investments:l 350,000
A/Rl (net):l 200,000l
Inventory:l 300,000l
PPEl (net):l 500,000
Intermediatel Accountingl IIl (Latestl 2026/l
2027l Update)l 100%l Verifiedl Questionsl &l
Answersl |l Gradel A
Q:l Netl Sales:l 750,000
Totall Assetsl atl thel endl ofl yearl 2:l 500,000
Totall Assetsl atl thel endl ofl yearl 1:l 450,000
Netl Income:l 120,000
Whatl isl thel company'sl profitl marginl onl sales?
Answer:
Thel profitl marginl onl salesl isl 16%.
l Thisl isl calculatedl byl dividingl netl incomel ($120,000)l byl netl salesl ($750,000),l resultingl
inl $120,000l /l $750,000l =l 0.16l orl 16%,l perl GAAP.
Q:l Netl Sales:l 750,000
Totall Assetsl atl thel endl ofl yearl 2:l 500,000
Totall assetsl atl thel endl ofl yearl 1:l 450,000
Netl Income:l 120,000l
Whatl isl thel company'sl returnl onl assets?
Answer:
Thel returnl onl assetsl isl 0.25.
l Thisl isl calculatedl byl dividingl netl incomel ($120,000)l byl thel averagel totall assetsl
(($500,000l +l $450,000)l /l 2l =l $475,000),l resultingl inl $120,000l /l $475,000l =l 0.2526,l
whichl roundsl tol 0.25,l perl GAAP.
,Q:l Al locall restaurantl hasl takenl al $40,000l loanl froml theirl bank.l
Thel restaurantl mustl repayl thel borrowedl fundsl inl 8l monthsl withl 3%l interest.l
Howl shouldl thel restaurantl recordl thel loan?
Answer:
Thel restaurantl shouldl debitl Cashl forl $40,000l andl creditl Notesl Payablel forl $40,000l tol
recordl thel loan.l
Thel 3%l interestl ($1,200l =l $40,000l ×l 3%)l willl bel recordedl asl interestl expensel overl
thel 8-monthl term,l notl atl thel loan'sl inception,l perl GAAP.
Q:l Onl Januaryl 1,l al companyl receivedl 24,000l inl advancel forl monthlyl pestl servicesl
forl thel year.l
Whichl entryl shouldl thel companyl usel tol recordl thel monthl ofl May'sl revenue?
Answer:
Thel companyl shouldl debitl Unearnedl Revenuel forl $2,000l andl creditl Servicel Revenuel
forl $2,000l tol recordl May'sl revenue.
l Thisl reflectsl onel month'sl portionl ofl thel annuall advancel ($24,000l ÷l 12l =l $2,000),l perl
GAAP.
Q:l Whichl amountl froml thel followingl shouldl bel includedl asl currentl liabilitiesl onl thel
balancel sheetl forl al companyl who'sl normall operatingl cyclel isl onel year,l andl theyl havel
thel followingl accountl balancesl takenl froml thel triall balance:l
A/P:l 50,000
A/R:l 25,000
Notesl Payablel (duel inl 30l months):l 15,000l
Customerl advances:l 10,000l
Bondsl Payablel (duel inl 60l months):l 30,000
Salesl taxl payable:l $5,000
Answer:
, Thel amountl includedl asl currentl liabilitiesl onl thel balancel sheetl isl $65,000.l
Thisl includesl Accountsl Payablel ($50,000),l Customerl Advancesl ($10,000),l andl Salesl Taxl
Payablel ($5,000),l asl theyl arel duel withinl onel year,l perl GAAP.
Q:l Al manufacturingl companyl producedl 900l itemsl thisl year.l Byl Decemberl 31,l 850l ofl
thel itemsl werel sold.l Thel companyl alsol sellsl anl extendedl warrantyl atl al costl ofl $50l
perl item.l Warrantiesl werel purchasedl onl 725l ofl thel items.l Thel companyl incurredl andl
paidl anl averagel ofl $35l perl iteml warrantyl expensel thisl year.l
Whichl amountl ofl unearnedl warrantyl revenuel shouldl bel recordedl atl thel timel ofl thel
sale?
Answer:
Thel unearnedl warrantyl revenuel recordedl atl thel timel ofl salel isl $36,250.l
Thisl isl calculatedl asl 725l warrantiesl soldl atl $50l eachl (725l ×l $50l =l $36,250),l perl
GAAP.
Q:l Whatl isl thel requiredl presentationl andl disclosurel requiredl forl lawsuitsl whenl legall
counsell believesl itl isl probablel thatl al corporationl willl losel thel lawsuitl andl thel lossl isl
estimatedl tol bel 500,000?
Answer:
Whenl legall counsell believesl itl isl probablel thatl al corporationl willl losel al lawsuitl andl
thel lossl isl estimatedl atl $500,000,l GAAPl requiresl thel companyl tol recognizel al liabilityl
ofl $500,000l inl thel financiall statementsl andl disclosel thel naturel ofl thel lawsuit,l thel
estimatedl loss,l andl anyl potentiall rangel ofl lossl inl thel notes.
l Thisl ensuresl transparentl reportingl ofl thel probablel lossl andl itsl financiall impact.
Q:l Cashl 150,000l
Short-terml investments:l 350,000
A/Rl (net):l 200,000l
Inventory:l 300,000l
PPEl (net):l 500,000
