Financial Accounting - D102 WGU
2024/2025 Exam Questions with 100%
Correct Answers | Latest Update
Account - 🧠 ANSWER ✔✔An accounting record in which the results of
transactions are accumulated; shows increases, decreases, and a balance
Accounts Receivable - 🧠 ANSWER ✔✔A current asset representing money
due for services performed or merchandise sold on credit
On August 1 of Year 1, a company paid $7,200 for two years' rent. The
rental period starts on August 1 of Year 1.
Which debit or credit is correctly included in the adjusting journal entry
necessary on December 31 of Year 1? - 🧠 ANSWER ✔✔1. Credit to rent
expense for $1,500.
2. Credit to prepaid rent for $5,100.
3. Debit to rent expense for $1,500.
4. Debit to rent expense for $5,100.
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,Correct: 3
On October 1 of Year 1, a company made a $60,000 cash loan to another
company. The interest rate on the loan is 5%. No cash payments will be
collected on the loan until September 30 of Year 2.
Which debit or credit is correctly included in the adjusting journal entry
necessary on the company's books (the lender) on December 31 with
respect to this loan? - 🧠 ANSWER ✔✔1. Credit to interest revenue for
$750.
2. Debit to interest revenue for $2,250.
3. Credit to interest revenue for $2,250.
4. Debit to interest revenue for $750.
Correct: 2
On January 1, a company had office supplies costing $4,600. During the
year, the company bought (and recorded) additional office supplies costing
$9,900. On December 31, a physical count of office supplies revealed that
supplies costing $2,900 remained.
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,Which debit or credit is correctly included in the adjusting journal entry
necessary on December 31 to record the supplies that the company used
during the year? - 🧠 ANSWER ✔✔1. Credit to office supplies expense for
$11,600.
2. Debit to office supplies for $11,600.
3. Credit to office supplies for $11,600.
4. Debit to cash for $11,600.
Correct: 3
At the end of the year, before any closing entries are made, which account
has a debit balance? - 🧠 ANSWER ✔✔Cost of goods sold
Revenues: Credit or Debit on the book? - 🧠 ANSWER ✔✔Credits; they
represent increases of equity
Expenses and Dividends: Credit or Debit on the books? - 🧠 ANSWER
✔✔Debits; they represent decreases in equity
Steps to closing Entries: - 🧠 ANSWER ✔✔1. Separate Nominal accounts
from real accounts
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STATEMENT. ALL RIGHTS RESERVED
, 2. Debit or credit each nominal account to make the balance = 0
3. Corresponding debit or credit to Retained Earnings
How is the ending retained earnings calculated? - 🧠 ANSWER
✔✔Beginning retained earnings + Net Income - Dividends
Net Income - 🧠 ANSWER ✔✔the difference between total revenue and
total expenses
On January 6, a credit sale was made for $1,000. Terms for the sale were
4/10, n/30. Cash for the sale was collected on January 25.
Which debit or credit should be included in the journal entry to record the
cash collection on January 25? - 🧠 ANSWER ✔✔1. Debit accounts
receivable for $1,000
2. Debit sales discounts for $960
3. Debit cash for $1,000
4. Debit sales discounts for $40
Correct: 2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
2024/2025 Exam Questions with 100%
Correct Answers | Latest Update
Account - 🧠 ANSWER ✔✔An accounting record in which the results of
transactions are accumulated; shows increases, decreases, and a balance
Accounts Receivable - 🧠 ANSWER ✔✔A current asset representing money
due for services performed or merchandise sold on credit
On August 1 of Year 1, a company paid $7,200 for two years' rent. The
rental period starts on August 1 of Year 1.
Which debit or credit is correctly included in the adjusting journal entry
necessary on December 31 of Year 1? - 🧠 ANSWER ✔✔1. Credit to rent
expense for $1,500.
2. Credit to prepaid rent for $5,100.
3. Debit to rent expense for $1,500.
4. Debit to rent expense for $5,100.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,Correct: 3
On October 1 of Year 1, a company made a $60,000 cash loan to another
company. The interest rate on the loan is 5%. No cash payments will be
collected on the loan until September 30 of Year 2.
Which debit or credit is correctly included in the adjusting journal entry
necessary on the company's books (the lender) on December 31 with
respect to this loan? - 🧠 ANSWER ✔✔1. Credit to interest revenue for
$750.
2. Debit to interest revenue for $2,250.
3. Credit to interest revenue for $2,250.
4. Debit to interest revenue for $750.
Correct: 2
On January 1, a company had office supplies costing $4,600. During the
year, the company bought (and recorded) additional office supplies costing
$9,900. On December 31, a physical count of office supplies revealed that
supplies costing $2,900 remained.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
,Which debit or credit is correctly included in the adjusting journal entry
necessary on December 31 to record the supplies that the company used
during the year? - 🧠 ANSWER ✔✔1. Credit to office supplies expense for
$11,600.
2. Debit to office supplies for $11,600.
3. Credit to office supplies for $11,600.
4. Debit to cash for $11,600.
Correct: 3
At the end of the year, before any closing entries are made, which account
has a debit balance? - 🧠 ANSWER ✔✔Cost of goods sold
Revenues: Credit or Debit on the book? - 🧠 ANSWER ✔✔Credits; they
represent increases of equity
Expenses and Dividends: Credit or Debit on the books? - 🧠 ANSWER
✔✔Debits; they represent decreases in equity
Steps to closing Entries: - 🧠 ANSWER ✔✔1. Separate Nominal accounts
from real accounts
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
, 2. Debit or credit each nominal account to make the balance = 0
3. Corresponding debit or credit to Retained Earnings
How is the ending retained earnings calculated? - 🧠 ANSWER
✔✔Beginning retained earnings + Net Income - Dividends
Net Income - 🧠 ANSWER ✔✔the difference between total revenue and
total expenses
On January 6, a credit sale was made for $1,000. Terms for the sale were
4/10, n/30. Cash for the sale was collected on January 25.
Which debit or credit should be included in the journal entry to record the
cash collection on January 25? - 🧠 ANSWER ✔✔1. Debit accounts
receivable for $1,000
2. Debit sales discounts for $960
3. Debit cash for $1,000
4. Debit sales discounts for $40
Correct: 2
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