WGU D102 EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
What items are used in computing the company's ending cash balance for the year?
a. Cash balance at the beginning of the year, cash flow from operating activities, cash flow from
investing activities, and cash flow from financing activities.
b. Net income, sales, cash flow from operating activities, cash flow from investing activities, and
cash flow from financing activities.
c. Cash balance at the beginning of the year, net income, cash flow from investing activities, and
retained earnings at the beginning of the year.
d. Retained earnings at the beginning of the year, cash flow from operating activities, accounts
receivable, cash flow from investing activities, and cash flow from financing activities. -
ANS a. Cash balance at the beginning of the year, cash flow from operating activities, cash
flow from investing activities, and cash flow from financing activities.
How are expenses typically recorded with debits and credits?
a. As a credit, representing a reduction in assets.
b. As a debit, representing an increase in assets.
c. As a debit, representing a reduction in equity.
d. As a credit, representing an increase in equity. - ANS c. As a debit, representing a reduction
in equity.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The revenue recognition principle states that revenues are recorded when two main criteria
have been met. One of those criteria is that cash has been collected or collectability is
reasonably assured.
What is the other criterion?
a. Expense targets for the period have been reached.
b. Overhead has been properly allocated.
c. All taxes - sales tax, income tax, and value-added tax - have been paid.
d. The earnings process is substantially complete. - ANS d. The earnings process is
substantially complete.
What information is contained in a balance sheet?
a Report of a company's operating performance during a period of time.
b Report of a company's financial position during a period of time.
c Report of a company's operating performance as of a point in time.
d Report of a company's financial position as of a point in time. - ANS d Report of a
company's financial position as of a point in time.
What is reported in a multiple-step income statement that is not reported in a single-step
income statement?
Gross profit
Retained earnings
Dividends
Cash collected from customers - ANS Gross profit
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS. VERIFIED 2025/2026.
What items are used in computing the company's ending cash balance for the year?
a. Cash balance at the beginning of the year, cash flow from operating activities, cash flow from
investing activities, and cash flow from financing activities.
b. Net income, sales, cash flow from operating activities, cash flow from investing activities, and
cash flow from financing activities.
c. Cash balance at the beginning of the year, net income, cash flow from investing activities, and
retained earnings at the beginning of the year.
d. Retained earnings at the beginning of the year, cash flow from operating activities, accounts
receivable, cash flow from investing activities, and cash flow from financing activities. -
ANS a. Cash balance at the beginning of the year, cash flow from operating activities, cash
flow from investing activities, and cash flow from financing activities.
How are expenses typically recorded with debits and credits?
a. As a credit, representing a reduction in assets.
b. As a debit, representing an increase in assets.
c. As a debit, representing a reduction in equity.
d. As a credit, representing an increase in equity. - ANS c. As a debit, representing a reduction
in equity.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The revenue recognition principle states that revenues are recorded when two main criteria
have been met. One of those criteria is that cash has been collected or collectability is
reasonably assured.
What is the other criterion?
a. Expense targets for the period have been reached.
b. Overhead has been properly allocated.
c. All taxes - sales tax, income tax, and value-added tax - have been paid.
d. The earnings process is substantially complete. - ANS d. The earnings process is
substantially complete.
What information is contained in a balance sheet?
a Report of a company's operating performance during a period of time.
b Report of a company's financial position during a period of time.
c Report of a company's operating performance as of a point in time.
d Report of a company's financial position as of a point in time. - ANS d Report of a
company's financial position as of a point in time.
What is reported in a multiple-step income statement that is not reported in a single-step
income statement?
Gross profit
Retained earnings
Dividends
Cash collected from customers - ANS Gross profit
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
