WGU D774 Intro to Business Accounting OA 2025
COMPLETE STUDY QUESTIONS AND VERIFIED
ANSWERS || 100% GUARANTEED PASS <LATEST
VERSION>
Description: Features 91 verified study questions and
answers for WGU D774 Introduction to Business
Accounting Objective Assessment (2025 edition). Covers
accounting principles, financial statements, and business
applications. Ideal for students preparing for the OA
exam.
Keywords: WGU D774 Business Accounting Objective
Assessment Financial Statements Accounting Principles
Study Guide
Part 1: The Accounting Environment & Basic Concepts
1. What is the primary purpose of accounting?
A) To eliminate all business debts.
B) To record business transactions and summarize results for decision-makers.
C) To ensure a company always makes a profit.
D) To manage the day-to-day operations of a business.
2. What is the difference between financial accounting and managerial accounting?
A) Financial accounting is for internal users; managerial is for external users.
B) Financial accounting is based on past events; managerial is focused on future planning
and internal decision-making.
, C) They are identical and the terms can be used interchangeably.
D) Managerial accounting is required by law; financial accounting is optional.
3. The primary external users of financial accounting information are:
A) Managers and employees.
B) Investors and creditors.
C) Customers and suppliers.
D) The marketing and HR departments.
4. What is the fundamental accounting equation?
A) Revenue - Expenses = Net Income
B) Assets = Liabilities + Equity
C) Debits = Credits
D) Beginning Equity + Investments - Dividends + Net Income = Ending Equity
5. What does the term "GAAP" stand for?
A) General Accounting and Auditing Procedures
B) Governmentally Approved Accounting Principles
C) Generally Accepted Accounting Principles
D) Global Association of Accounting Professionals
6. Which organization is the primary standard-setting body for U.S. GAAP?
A) SEC (Securities and Exchange Commission)
B) IRS (Internal Revenue Service)
C) FASB (Financial Accounting Standards Board)
D) IFRS (International Financial Reporting Standards)
7. The assumption that a business will remain in operation for the foreseeable future is
the:
A) Economic Entity Assumption
B) Monetary Unit Assumption
C) Going Concern Assumption
D) Periodicity Assumption
8. The principle that requires assets to be recorded at their original purchase cost is
the:
A) Revenue Recognition Principle
B) Cost Principle
C) Matching Principle
D) Full Disclosure Principle
9. The principle that dictates that revenue should be recorded when it is earned, not
necessarily when cash is received, is the:
, A) Cost Principle
B) Matching Principle
C) Revenue Recognition Principle
D) Going Concern Assumption
10. The principle that requires expenses to be recorded in the same period as the
revenues they helped to generate is the:
A) Cost Principle
B) Matching Principle
C) Revenue Recognition Principle
D) Full Disclosure Principle
Part 2: Recording Business Transactions (The Accounting Cycle)
11. An account is defined as:
A) The entire set of financial statements.
B) A detailed record of all increases and decreases in a specific asset, liability, equity,
revenue, or expense item.
C) A record of cash receipts only.
D) The general ledger itself.
12. A record containing all accounts of a company is the:
A) Journal
B) Chart of Accounts
C) General Ledger
D) Trial Balance
13. What is the effect on the accounting equation when a company pays cash for office
supplies?
A) Assets increase; liabilities increase.
B) One asset increases; another asset decreases.
C) Assets decrease; equity decreases.
D) There is no change to the accounting equation.
14. Debits are used to:
A) Increase all accounts.
B) Increase assets and expenses, and decrease liabilities, equity, and revenue.
C) Decrease all accounts.
D) Increase liabilities, equity, and revenue.
15. Credits are used to:
A) Decrease all accounts.
B) Increase liabilities, equity, and revenue, and decrease assets and expenses.
COMPLETE STUDY QUESTIONS AND VERIFIED
ANSWERS || 100% GUARANTEED PASS <LATEST
VERSION>
Description: Features 91 verified study questions and
answers for WGU D774 Introduction to Business
Accounting Objective Assessment (2025 edition). Covers
accounting principles, financial statements, and business
applications. Ideal for students preparing for the OA
exam.
Keywords: WGU D774 Business Accounting Objective
Assessment Financial Statements Accounting Principles
Study Guide
Part 1: The Accounting Environment & Basic Concepts
1. What is the primary purpose of accounting?
A) To eliminate all business debts.
B) To record business transactions and summarize results for decision-makers.
C) To ensure a company always makes a profit.
D) To manage the day-to-day operations of a business.
2. What is the difference between financial accounting and managerial accounting?
A) Financial accounting is for internal users; managerial is for external users.
B) Financial accounting is based on past events; managerial is focused on future planning
and internal decision-making.
, C) They are identical and the terms can be used interchangeably.
D) Managerial accounting is required by law; financial accounting is optional.
3. The primary external users of financial accounting information are:
A) Managers and employees.
B) Investors and creditors.
C) Customers and suppliers.
D) The marketing and HR departments.
4. What is the fundamental accounting equation?
A) Revenue - Expenses = Net Income
B) Assets = Liabilities + Equity
C) Debits = Credits
D) Beginning Equity + Investments - Dividends + Net Income = Ending Equity
5. What does the term "GAAP" stand for?
A) General Accounting and Auditing Procedures
B) Governmentally Approved Accounting Principles
C) Generally Accepted Accounting Principles
D) Global Association of Accounting Professionals
6. Which organization is the primary standard-setting body for U.S. GAAP?
A) SEC (Securities and Exchange Commission)
B) IRS (Internal Revenue Service)
C) FASB (Financial Accounting Standards Board)
D) IFRS (International Financial Reporting Standards)
7. The assumption that a business will remain in operation for the foreseeable future is
the:
A) Economic Entity Assumption
B) Monetary Unit Assumption
C) Going Concern Assumption
D) Periodicity Assumption
8. The principle that requires assets to be recorded at their original purchase cost is
the:
A) Revenue Recognition Principle
B) Cost Principle
C) Matching Principle
D) Full Disclosure Principle
9. The principle that dictates that revenue should be recorded when it is earned, not
necessarily when cash is received, is the:
, A) Cost Principle
B) Matching Principle
C) Revenue Recognition Principle
D) Going Concern Assumption
10. The principle that requires expenses to be recorded in the same period as the
revenues they helped to generate is the:
A) Cost Principle
B) Matching Principle
C) Revenue Recognition Principle
D) Full Disclosure Principle
Part 2: Recording Business Transactions (The Accounting Cycle)
11. An account is defined as:
A) The entire set of financial statements.
B) A detailed record of all increases and decreases in a specific asset, liability, equity,
revenue, or expense item.
C) A record of cash receipts only.
D) The general ledger itself.
12. A record containing all accounts of a company is the:
A) Journal
B) Chart of Accounts
C) General Ledger
D) Trial Balance
13. What is the effect on the accounting equation when a company pays cash for office
supplies?
A) Assets increase; liabilities increase.
B) One asset increases; another asset decreases.
C) Assets decrease; equity decreases.
D) There is no change to the accounting equation.
14. Debits are used to:
A) Increase all accounts.
B) Increase assets and expenses, and decrease liabilities, equity, and revenue.
C) Decrease all accounts.
D) Increase liabilities, equity, and revenue.
15. Credits are used to:
A) Decrease all accounts.
B) Increase liabilities, equity, and revenue, and decrease assets and expenses.
