WGU D102 Pre-Assessment Exam
Questions & Answers A+ Rated
What information is contained in a balance sheet? - -Report of a company's
financial position as of a point in time.
- What is an owners' equity item? - -Capital stock
- A company ended July with assets of $150,000 and owner's equity of
$60,000.
What is the amount of liabilities at the end of July? - -$90,000
- What is reported in a multiple-step income statement that is not reported
in a single-step income statement? - -Gross profit
- How is gross profit computed? - -Sales minus cost of goods sold.
- The following are some accounts from a company's financial statements:
-accounts receivable
-cost of goods sold
-cash
-retained earnings
-sales
-inventory
-income tax expense
-accounts payable
Which set is a list of all of the items that are used in computing this
company's net income? - -Sales, cost of goods sold, and income tax
expense.
- What cash flow category contains activities whereby cash is obtained from
or repaid to owners or creditors? - -Financing
- Here are some financial statement items for the year for a company.
-Cash received from customers
-Cash received from the sale of land
-Cash paid for dividends
-Cash paid to employees for wages
-Cash paid to purchase a new building
-Cash paid for rent
-Cash received as new investment from owners
, Which set of items is a list of items that are used in computing the
company's financing cash flow for the year? - -Cash paid for dividends and
cash received as new investment from owners.
- Here are some financial statement items for a company.
-Net income
-Cash flow from financing activities
-Cash balance at the beginning of the year
-Sales Cash flow from investing activities
-Accounts receivable
-Retained earnings at the beginning of the year
-Cash flow from operating activities
What items are used in computing the company's ending cash balance for
the year? - -Cash balance at the beginning of the year, cash flow from
operating activities, cash flow from investing activities, and cash flow from
financing activities.
- How is revenue typically recorded with debits and credits? - -As a credit,
representing an increase in equity.
- What is the proper way to record an increase in an asset account and an
increase in an equity account? - -Asset, debit; equity, credit
- A company was started last year when the shareholders invested $70,000
cash into it. At that time, the company also borrowed $100,000 cash from a
local bank. The company used $140,000 cash to purchase inventory for
$140,000. This year the company sold all of the inventory for $95,000 cash
(and that is not a typographical error; the amount received for all of the
inventory was only $95,000 cash).
Which account balance is correct with respect to this company's balance
sheet after the sale of the inventory? - -Total owners' equity is $25,000.
- On January 1, a company had these assets, liabilities, and equities:
Cash $100
Inventory $140
Accounts payable $70
Paid-in capital $150
Retained earnings $20
During the year, the company entered into these transactions:
Selling inventory costing $140 for a total of $200; cash of $30 was received,
and the remaining $170 was put on account.
Paying cash for rent of $45.
Paying cash dividends of $30.
Questions & Answers A+ Rated
What information is contained in a balance sheet? - -Report of a company's
financial position as of a point in time.
- What is an owners' equity item? - -Capital stock
- A company ended July with assets of $150,000 and owner's equity of
$60,000.
What is the amount of liabilities at the end of July? - -$90,000
- What is reported in a multiple-step income statement that is not reported
in a single-step income statement? - -Gross profit
- How is gross profit computed? - -Sales minus cost of goods sold.
- The following are some accounts from a company's financial statements:
-accounts receivable
-cost of goods sold
-cash
-retained earnings
-sales
-inventory
-income tax expense
-accounts payable
Which set is a list of all of the items that are used in computing this
company's net income? - -Sales, cost of goods sold, and income tax
expense.
- What cash flow category contains activities whereby cash is obtained from
or repaid to owners or creditors? - -Financing
- Here are some financial statement items for the year for a company.
-Cash received from customers
-Cash received from the sale of land
-Cash paid for dividends
-Cash paid to employees for wages
-Cash paid to purchase a new building
-Cash paid for rent
-Cash received as new investment from owners
, Which set of items is a list of items that are used in computing the
company's financing cash flow for the year? - -Cash paid for dividends and
cash received as new investment from owners.
- Here are some financial statement items for a company.
-Net income
-Cash flow from financing activities
-Cash balance at the beginning of the year
-Sales Cash flow from investing activities
-Accounts receivable
-Retained earnings at the beginning of the year
-Cash flow from operating activities
What items are used in computing the company's ending cash balance for
the year? - -Cash balance at the beginning of the year, cash flow from
operating activities, cash flow from investing activities, and cash flow from
financing activities.
- How is revenue typically recorded with debits and credits? - -As a credit,
representing an increase in equity.
- What is the proper way to record an increase in an asset account and an
increase in an equity account? - -Asset, debit; equity, credit
- A company was started last year when the shareholders invested $70,000
cash into it. At that time, the company also borrowed $100,000 cash from a
local bank. The company used $140,000 cash to purchase inventory for
$140,000. This year the company sold all of the inventory for $95,000 cash
(and that is not a typographical error; the amount received for all of the
inventory was only $95,000 cash).
Which account balance is correct with respect to this company's balance
sheet after the sale of the inventory? - -Total owners' equity is $25,000.
- On January 1, a company had these assets, liabilities, and equities:
Cash $100
Inventory $140
Accounts payable $70
Paid-in capital $150
Retained earnings $20
During the year, the company entered into these transactions:
Selling inventory costing $140 for a total of $200; cash of $30 was received,
and the remaining $170 was put on account.
Paying cash for rent of $45.
Paying cash dividends of $30.
