D774 WGU EXAM QUESTIONS WITH CORRECT
ANSWERS
Accounting |Equation
An |algebraic |equation |that |expresses |the |relationship |between |assets |(resources), |liabilities |
(obligations), |and |owner's |equity |(net |assets, |or |the |residual |interest |in |a |business |after |all |
liabilities |have |been |met): |Assets |= |Liabilities |+ |Owners' |Equity.
Activity-based |Costing |(ABC)
A |method |of |attributing |overhead |costs |to |products |based |on |measurable |factors |that |relate |
to |activities |that |create |overhead |costs.
Agency |Problem
A |conflict |that |arises |when |an |agent |(managemnet), |who |is |expected |to |act |in |the |best |
interests |of |a |principal |(shareholders), |has |an |incentive |to |act |in |their |own |best |interest |
instead.
Articulation
The |interrelationships |among |the |financial |statements.
Assets
Economic |resources |that |are |owned |or |controlled |by |a |company.
,Balance |Sheet
A |summary |of |the |financial |position |of |a |company |at |a |particular |date.
Board |of |Directors
A |group |of |individuals |elected |by |the |stockholders |to |govern |a |corporation.
Break-even |Point
The |amount |of |sales |at |which |total |costs |of |the |number |of |units |sold |equal |total |revenues; |the
|point |at |which |there |is |no |profit |or |loss.
Budget
A |financial |spending |and |income |plan |for |a |defined |period |that |outlines |how |a |firm, |an |
organization, |or |an |individual |will |acquire |and |use |financial |resources.
Capital
Financial |assets |that |an |individual |or |organization |uses |for |investment |or |generating |profit.
Capital |Stock
The |portion |of |stockholder's |equity |that |represents |investment |by |owners |in |exchange |for |
shares |of |stock; |also |referred |to |as |paid-in |capital.
, Cash |Budget
A |schedule |of |expected |cash |receipts |and |disbursements |during |the |budget |period.
Cash |Flow |Statement
The |financial |statement |that |shows |an |entity's |cash |inflows |(receipts) |and |outflows |(payments)
|during |a |period |of |time.
Certified |Public |Accountant |(CPA)
A |special |designation |given |to |an |accountant |who |has |passed |a |national |uniform |examination |
and |has |met |other |certifying |requirements.
Classified |Balance |Sheet
A |balance |sheet |that |distinguishes |between |current |and |long-term |assets.
Common-size |Financial |Statements
Financial |statements |achieved |by |dividing |all |financial |statement |numbers |by |total |sales |for |
the |year.
Comparative |Balance |Sheet
A |balance |sheet |that |includes |information |for |both |the |current |year |and |preceding |year(s) |that
|are |prepared |for |users |to |identify |any |significant |changes |in |particular |items.
ANSWERS
Accounting |Equation
An |algebraic |equation |that |expresses |the |relationship |between |assets |(resources), |liabilities |
(obligations), |and |owner's |equity |(net |assets, |or |the |residual |interest |in |a |business |after |all |
liabilities |have |been |met): |Assets |= |Liabilities |+ |Owners' |Equity.
Activity-based |Costing |(ABC)
A |method |of |attributing |overhead |costs |to |products |based |on |measurable |factors |that |relate |
to |activities |that |create |overhead |costs.
Agency |Problem
A |conflict |that |arises |when |an |agent |(managemnet), |who |is |expected |to |act |in |the |best |
interests |of |a |principal |(shareholders), |has |an |incentive |to |act |in |their |own |best |interest |
instead.
Articulation
The |interrelationships |among |the |financial |statements.
Assets
Economic |resources |that |are |owned |or |controlled |by |a |company.
,Balance |Sheet
A |summary |of |the |financial |position |of |a |company |at |a |particular |date.
Board |of |Directors
A |group |of |individuals |elected |by |the |stockholders |to |govern |a |corporation.
Break-even |Point
The |amount |of |sales |at |which |total |costs |of |the |number |of |units |sold |equal |total |revenues; |the
|point |at |which |there |is |no |profit |or |loss.
Budget
A |financial |spending |and |income |plan |for |a |defined |period |that |outlines |how |a |firm, |an |
organization, |or |an |individual |will |acquire |and |use |financial |resources.
Capital
Financial |assets |that |an |individual |or |organization |uses |for |investment |or |generating |profit.
Capital |Stock
The |portion |of |stockholder's |equity |that |represents |investment |by |owners |in |exchange |for |
shares |of |stock; |also |referred |to |as |paid-in |capital.
, Cash |Budget
A |schedule |of |expected |cash |receipts |and |disbursements |during |the |budget |period.
Cash |Flow |Statement
The |financial |statement |that |shows |an |entity's |cash |inflows |(receipts) |and |outflows |(payments)
|during |a |period |of |time.
Certified |Public |Accountant |(CPA)
A |special |designation |given |to |an |accountant |who |has |passed |a |national |uniform |examination |
and |has |met |other |certifying |requirements.
Classified |Balance |Sheet
A |balance |sheet |that |distinguishes |between |current |and |long-term |assets.
Common-size |Financial |Statements
Financial |statements |achieved |by |dividing |all |financial |statement |numbers |by |total |sales |for |
the |year.
Comparative |Balance |Sheet
A |balance |sheet |that |includes |information |for |both |the |current |year |and |preceding |year(s) |that
|are |prepared |for |users |to |identify |any |significant |changes |in |particular |items.
