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WGU D102 FINANCIAL ACCOUNTING FINAL OA EXAM TEST BANK 1
LATEST 2026-2027 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
Which three types of inventory are held in a manufacturing
business?
Finished goods, manufacturing equipment, and work-in-process
Raw materials, accounts payable, and work-in-process
Work-in-process, finished goods, and cost of goods sold
Raw materials, work-in-process, and finished goods - ANSWER-
Raw materials, work-in-process, and finished goods
Which item is considered inventory for a supermarket?
Cash register
Vegetables
Display shelves
Transport equipment - ANSWER-Vegetables
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What is inventory?
Goods used to store property, plant, and equipment in the normal
course of business
Goods expected to be used as long-term equipment in the normal
course of business
Goods expected to be used as short-term supplies in the normal
course of business
Goods manufactured or purchased and held for sale in the normal
course of business - ANSWER-Goods manufactured or
purchased and held for sale in the normal course of business
If goods are sold and shipped with FOB destination shipping
terms, when does ownership transfer from the seller to the buyer?
When the goods are in transit from the seller to the buyer
When the goods reach the buyer's location
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When the goods are loaded into the transport vehicle by the seller
When the goods are paid for, in cash, by the buyer - ANSWER-
When the goods reach the buyer's location
Endothon Company purchased inventory on account for $3,000.
Endothon Company also uses a periodic inventory system. Which
debit or credit is included in the journal entry necessary to record
the purchase of inventory on account?
Debit to Inventory for $3,000
Debit to Purchases for $3,000
Debit to Cash for $3,000
Debit to Accounts Payable for $3,000 - ANSWER-Debit to
Purchases for $3,000
What is the proper accounting for the inbound inventory shipping
costs called "freight in"?
Add to Accounts Receivable
Add to Inventory Cost
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Add to Administrative Expense
Add to Cost of Goods Sold - ANSWER-Add to Inventory Cost
Paradigm Toys purchased inventory costing $1,000 but paid early,
so only had to pay $980. What is the proper accounting for the
$20 purchase discount?
Subtract from Cash
Add to Accounts Receivable
Subtract from Inventory Cost
Add to Sales Revenue - ANSWER-Subtract from Inventory Cost
Oliver Costa owns a small business where he internally develops,
manufactures, and sells decorative figurines directly to customers.
To create his figurines, he owns assets including tools, machines,
raw materials used to produce the figurines, and a large stock of
the completed figurines themselves. As Costa prepares his
balance sheet for the first time, he must classify his assets into
their various appropriate categories.
WGU D102 FINANCIAL ACCOUNTING FINAL OA EXAM TEST BANK 1
LATEST 2026-2027 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
Which three types of inventory are held in a manufacturing
business?
Finished goods, manufacturing equipment, and work-in-process
Raw materials, accounts payable, and work-in-process
Work-in-process, finished goods, and cost of goods sold
Raw materials, work-in-process, and finished goods - ANSWER-
Raw materials, work-in-process, and finished goods
Which item is considered inventory for a supermarket?
Cash register
Vegetables
Display shelves
Transport equipment - ANSWER-Vegetables
,2|Page
What is inventory?
Goods used to store property, plant, and equipment in the normal
course of business
Goods expected to be used as long-term equipment in the normal
course of business
Goods expected to be used as short-term supplies in the normal
course of business
Goods manufactured or purchased and held for sale in the normal
course of business - ANSWER-Goods manufactured or
purchased and held for sale in the normal course of business
If goods are sold and shipped with FOB destination shipping
terms, when does ownership transfer from the seller to the buyer?
When the goods are in transit from the seller to the buyer
When the goods reach the buyer's location
,3|Page
When the goods are loaded into the transport vehicle by the seller
When the goods are paid for, in cash, by the buyer - ANSWER-
When the goods reach the buyer's location
Endothon Company purchased inventory on account for $3,000.
Endothon Company also uses a periodic inventory system. Which
debit or credit is included in the journal entry necessary to record
the purchase of inventory on account?
Debit to Inventory for $3,000
Debit to Purchases for $3,000
Debit to Cash for $3,000
Debit to Accounts Payable for $3,000 - ANSWER-Debit to
Purchases for $3,000
What is the proper accounting for the inbound inventory shipping
costs called "freight in"?
Add to Accounts Receivable
Add to Inventory Cost
, 4|Page
Add to Administrative Expense
Add to Cost of Goods Sold - ANSWER-Add to Inventory Cost
Paradigm Toys purchased inventory costing $1,000 but paid early,
so only had to pay $980. What is the proper accounting for the
$20 purchase discount?
Subtract from Cash
Add to Accounts Receivable
Subtract from Inventory Cost
Add to Sales Revenue - ANSWER-Subtract from Inventory Cost
Oliver Costa owns a small business where he internally develops,
manufactures, and sells decorative figurines directly to customers.
To create his figurines, he owns assets including tools, machines,
raw materials used to produce the figurines, and a large stock of
the completed figurines themselves. As Costa prepares his
balance sheet for the first time, he must classify his assets into
their various appropriate categories.
