WGU D102 Financial Accounting EXAM PREP 2025/2026 ACCURATE QUESTIONS WITH VERIFIED CORRECT ANSWERS || 100% GUARANTEED PASS <LATEST VERSSION>

WGU D102 Financial Accounting EXAM PREP 2025/2026 ACCURATE QUESTIONS WITH VERIFIED CORRECT ANSWERS || 100% GUARANTEED PASS &lt;LATEST VERSSION&gt; 1. cash basis accounting - ANSWER a system of accounting in which transactions are recorded and revenues and expenses are recognized only when cash is received or paid 2. cash collection - ANSWER the recovery of cash from a business or individual with which you have previously entered into a transaction 3. accumulated depreciation - ANSWER reflects the wear and tear, or depreciation, of items since they were originally purchased 4. additional paid-in capital - ANSWER capital invested by stockholders that exceeds the par value of the issued shares 5. adjusting entries - ANSWER entries required at the end of each accounting period to recognize, on an accrual basis, revenues and expenses for the period and to report proper amounts for asset, liability, and owners' equity accounts 6. allowance method - ANSWER the recording of estimated losses due to uncollectible accounts as expenses during the period in which the sales occurred 7. allowance for bad debts - ANSWER a contra account, deducted from accounts receivable, that shows the estimated losses from uncollectible accounts 8. cash dividends - ANSWER a cash distribution of earnings to stockholders 9. cash equivalents - ANSWER short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds 10. chart of accounts - ANSWER a systematic listing of all accounts used by a company 11. closing entires - ANSWER entries that reduce all nominal (temporary) accounts to a zero balance at the end of each accounting period, transferring their pre-closing balances to a permanent balance sheet account 12. common stock - ANSWER the most frequently issued class of stock; typically provides a voting right but is secondary to preferred stock in dividend and liquidation rights 13. compound interest - ANSWER interest earned on you interest 14. compound journal entry - ANSWER a journal entry that involves more than one debit or more than one credit or both 15. consignment - ANSWER an arrangement whereby merchandise owned by one party, the consignor, is sold by another party, the consignee, usually on a commission basis 16. consolidated financial statements - ANSWER statements that combines the financial results of a "parent company" with other companies that it owns, call subsidiaries 17. contingency - ANSWER circumstance involving potential losses or gains that will not be resolved until some future event occurs 18. contra account - ANSWER an account that is offset or deducted from another account 19. contributed capital - ANSWER the portion of owners' equity contributed by investors (the owners) in exchange for shares of stock 20. control activities - ANSWER policies and procedures used by management to meet their objectives 21. control environment - ANSWER the actions, policies, and procedures that reflect the overall attitudes of top management about control and its importance to the entity 22. control procedures - ANSWER policies and procedures used by management to meet their objectives 23. convertible preferred stock - ANSWER preferred stock that can be converted by the shareholder to common stock at a specified conversion rate 24. corporate charter - ANSWER a written document filed by the founders of a corporation with the state in which the corporation with the state in which the corporation is registered. It details the major components of a company, such as its objectives, structure, and planned operations 25. cost of goods sold - ANSWER the costs incurred to purchase or manufacture the merchandise sold during a period 26. credit (abbreviated Cr) - ANSWER an entry on the right side of a T account 27. current assets - ANSWER cash, accounts receivable, and inventory 28. current liabilities - ANSWER those obligations expected to be paid within one year, the most common being accounts payable 29. date of record - ANSWER the date selected by a corporation's board of directors on which the stockholders of record are identified as those who will receive dividends 30. debit (abbreviated Dr) - ANSWER an entry on the left side of a T-account 31. declaration date - ANSWER the date on which a corporation's board of directors formally decides to pay a dividend to stockholders 32. declining-balance depreciation method - ANSWER an accelerated depreciation method in which an asset's book value is multiplied by a constant depreciation rate (such as double the straight-line percentage, in the case of double-declining-balance) 33. depreciation - ANSWER the process of cost allocation that assigns the original cost of plant and equipment to the periods benefited 34. detective controls - ANSWER internal control activities that are designed to detect the occurrence of errors and fraud 35. development - ANSWER the application of a company's research findings to develop a plan or design for new or improved products and processes as part of a company's larger (R&D) activities 36. direct write-off method - ANSWER the recording of actual losses from uncollectible accounts as expenses during the period in which accounts receivable are determined to be uncollectible 37. discount - ANSWER the process of converting future values into present values 38. dividend payment date - ANSWER the date on which a corporation pays dividends to its stockholders 39. dividends - ANSWER distributions to the owners (stockholders) of a corporation 40. earnings per share (EPS) - ANSWER a company's net income divided by the number of outstanding shares held by shareholders 41. estimated useful life - ANSWER the life over which it is estimated that an asset will be used by company 42. executory contract - ANSWER it is an exchange of promises about the future 43. expanded accounting equation - ANSWER Assets=Liabilities+Paid-in Capital+(Revenues-Expenses-Dividends) 44. Expenses - ANSWER the value of resources used in generating the reported revenue 45. FIFO (First In, First Out) - ANSWER an inventory cost flow assumption whereby the first goods purchased are assumed to be the first goods sold so that the ending inventory consists of the most recently purchased goods 46. FOB (Free-on-board) shipping point - ANSWER a business term meaning that the buyer of merchandise bears the shipping costs and acquires ownership at the point of shipment 47. financing activities - ANSWER obtaining resources from owners and providing them a return on their investment; obtaining resources from creditors and repaying those borrowings 48. finished goods - ANSWER manufactured products ready for sale 49. fiscal year - ANSWER an entity's reporting year, covering a 12-month accounting period 50. franchise agreement - ANSWER an exclusive right or privilege received by a business or individual to perform certain functions or sell certain products or services