WGU D102 FINANCIAL ACCOUNTING OBJECTIVE
ASSESSMENT COMPREHENSIVE QUESTIONS WITH
MULTIPLE CHOICES |VERIFIED & REVISED ANSWERS
(NEW) 2025
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.
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.
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
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
ASSESSMENT COMPREHENSIVE QUESTIONS WITH
MULTIPLE CHOICES |VERIFIED & REVISED ANSWERS
(NEW) 2025
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.
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.
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
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
