WGU D102 FINANCIAL ACCOUNTING
ALL TERMS EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
Account - ANS an accounting record in which the results of transactions are accumulated;
shows increases, decreases, and a balance
accounts receivable - ANS a current asset representing money due for services performed or
merchandise sold on credit
accrual accounting - ANS the process of recording expenses and revenues when incurred and
earned, regardless of when cash is received, and of adjusting original transaction data into
refined measures of a firm's past economic performance and current economic condition
accrual basis accounting - ANS a system of accounting in which revenues and expenses are
recorded as they are earned and incurred, not necessarily when cash is received or paid
accumulated depreciation - ANS reflects the wear and tear, or depreciation, of items since
they were originally purchased
additional paid-in capital - ANS capital invested by stockholders that exceeds the par value of
the issued shares
1 @COPYRIGHT 2025/2026
, adjusting entries - ANS 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
allowance method - ANS the recording of estimated losses due to uncollectible accounts as
expenses during the period in which the sales occurred
allowance for bad debts - ANS a contra account, deducted from accounts receivable, that
shows the estimated losses from uncollectible accounts
amortization - ANS the process of cost allocation that assigns the original cost of an
intangible asset to the periods benefited
articulatoin - ANS the interrelationship among the financial statements
assets - ANS economic resources that are owned or controlled by a company
audit committee - ANS members of a company's board of directors who are responsible for
dealing with the external and internal auditors
average costing - ANS an inventory cost flow assumptions whereby cost of goods sold and
the cost of ending inventory are determined by using an average cost of all merchandise
available for sale during the period
bad debt expense - ANS an account that represents the portion of the current period's credit
sales that are estimated to be uncollectible
bad debts - ANS an uncollecible account receivable
balance sheet - ANS a listing of an organization's assets and of its liabilities at a certain time
2 @COPYRIGHT 2025/2026
ALL TERMS EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
Account - ANS an accounting record in which the results of transactions are accumulated;
shows increases, decreases, and a balance
accounts receivable - ANS a current asset representing money due for services performed or
merchandise sold on credit
accrual accounting - ANS the process of recording expenses and revenues when incurred and
earned, regardless of when cash is received, and of adjusting original transaction data into
refined measures of a firm's past economic performance and current economic condition
accrual basis accounting - ANS a system of accounting in which revenues and expenses are
recorded as they are earned and incurred, not necessarily when cash is received or paid
accumulated depreciation - ANS reflects the wear and tear, or depreciation, of items since
they were originally purchased
additional paid-in capital - ANS capital invested by stockholders that exceeds the par value of
the issued shares
1 @COPYRIGHT 2025/2026
, adjusting entries - ANS 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
allowance method - ANS the recording of estimated losses due to uncollectible accounts as
expenses during the period in which the sales occurred
allowance for bad debts - ANS a contra account, deducted from accounts receivable, that
shows the estimated losses from uncollectible accounts
amortization - ANS the process of cost allocation that assigns the original cost of an
intangible asset to the periods benefited
articulatoin - ANS the interrelationship among the financial statements
assets - ANS economic resources that are owned or controlled by a company
audit committee - ANS members of a company's board of directors who are responsible for
dealing with the external and internal auditors
average costing - ANS an inventory cost flow assumptions whereby cost of goods sold and
the cost of ending inventory are determined by using an average cost of all merchandise
available for sale during the period
bad debt expense - ANS an account that represents the portion of the current period's credit
sales that are estimated to be uncollectible
bad debts - ANS an uncollecible account receivable
balance sheet - ANS a listing of an organization's assets and of its liabilities at a certain time
2 @COPYRIGHT 2025/2026
