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WGU D774 OBJECTIVE ASSESSMENT 2 NEWEST 2026 ACTUAL EXAM|
D774 INTRODUCTION TO BUSINESS ACCOUNTING OA FINAL WITH
COMPLETE 250 REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
Section 1: Accounting Fundamentals (Questions 1–25)
Question 1
What is the primary purpose of accounting?
A) To maximize the company's stock price
B) To identify, record, and communicate the economic events of an organization
to interested users
C) To prepare tax returns and ensure compliance with the IRS
D) To track only the cash transactions of a business
: Answer: B. The primary purpose of accounting is to identify, record,
and communicate economic events to internal and external users.
Question 2
Which of the following best describes the "Economic Entity" assumption?
A) The business will continue to operate indefinitely
B) The business is distinct from its owners and from any other business
C) Transactions are recorded at their original cost
D) Revenue is recognized when cash is received
: Answer: B. The Economic Entity assumption separates the business
transactions from those of the owners or other businesses.
Question 3
pg. 1
,2
The "Going Concern" assumption implies that:
A) The business will likely cease operations within the next year
B) The business will continue to operate in the foreseeable future
C) The business is only concerned with current assets
D) The business must use the cash basis of accounting
: Answer: B. The Going Concern assumption assumes the business will remain in
operation for the foreseeable future, allowing deferral of certain expenses.
Question 4
Which of the following is NOT a primary qualitative characteristic of useful
financial information under GAAP?
A) Relevance
B) Faithful representation
C) Materiality
D) Profitability
: Answer: D. The primary qualitative characteristics are relevance and faithful
representation. Profitability is an outcome, not a characteristic of information.
Question 5
The "Monetary Unit" assumption requires that:
A) Only transactions that can be measured in money are recorded
B) The dollar is assumed to be stable over time
C) The business uses the same monetary unit for all transactions
D) All of the above
pg. 2
,3
: Answer: D. All three statements are part of the Monetary Unit assumption:
only money-measurable transactions are recorded, the dollar is the unit of
measure, and it is assumed to be stable.
Question 6
Which of the following users is considered an EXTERNAL user of accounting
information?
A) A manager evaluating departmental performance
B) The CEO preparing the annual budget
C) A creditor assessing the company’s ability to repay a loan
D) The controller reconciling bank statements
: Answer: C. Creditors are external users. Internal users include managers, CEOs,
and controllers.
Question 7
Internal users of accounting information include:
A) Investors and creditors
B) Regulatory agencies
C) Managers and employees
D) Customers and suppliers
: Answer: C. Internal users are those within the organization, such as managers,
employees, and company officers.
Question 8
Which of the following is an example of financing activity?
A) Purchasing equipment for cash
pg. 3
, 4
B) Selling goods to a customer
C) Issuing shares of common stock to investors
D) Paying rent for the office space
: Answer: C. Financing activities include obtaining funds from owners (issuing
stock) and creditors (borrowing money).
Question 9
Which of the following is an example of an operating activity?
A) Purchasing a building
B) Paying salaries to employees
C) Repaying a bank loan
D) Selling equipment at a loss
: Answer: B. Operating activities are the day-to-day functions of a business,
including paying salaries, selling goods, and paying rent.
Question 10
The purchase of a long-term asset (e.g., a delivery truck) is classified as:
A) Operating activity
B) Financing activity
C) Investing activity
D) Neither; it is not reported on the statement of cash flows
: Answer: C. Investing activities involve the purchase and sale of long-term
assets and investments.
Question 11
pg. 4
WGU D774 OBJECTIVE ASSESSMENT 2 NEWEST 2026 ACTUAL EXAM|
D774 INTRODUCTION TO BUSINESS ACCOUNTING OA FINAL WITH
COMPLETE 250 REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
Section 1: Accounting Fundamentals (Questions 1–25)
Question 1
What is the primary purpose of accounting?
A) To maximize the company's stock price
B) To identify, record, and communicate the economic events of an organization
to interested users
C) To prepare tax returns and ensure compliance with the IRS
D) To track only the cash transactions of a business
: Answer: B. The primary purpose of accounting is to identify, record,
and communicate economic events to internal and external users.
Question 2
Which of the following best describes the "Economic Entity" assumption?
A) The business will continue to operate indefinitely
B) The business is distinct from its owners and from any other business
C) Transactions are recorded at their original cost
D) Revenue is recognized when cash is received
: Answer: B. The Economic Entity assumption separates the business
transactions from those of the owners or other businesses.
Question 3
pg. 1
,2
The "Going Concern" assumption implies that:
A) The business will likely cease operations within the next year
B) The business will continue to operate in the foreseeable future
C) The business is only concerned with current assets
D) The business must use the cash basis of accounting
: Answer: B. The Going Concern assumption assumes the business will remain in
operation for the foreseeable future, allowing deferral of certain expenses.
Question 4
Which of the following is NOT a primary qualitative characteristic of useful
financial information under GAAP?
A) Relevance
B) Faithful representation
C) Materiality
D) Profitability
: Answer: D. The primary qualitative characteristics are relevance and faithful
representation. Profitability is an outcome, not a characteristic of information.
Question 5
The "Monetary Unit" assumption requires that:
A) Only transactions that can be measured in money are recorded
B) The dollar is assumed to be stable over time
C) The business uses the same monetary unit for all transactions
D) All of the above
pg. 2
,3
: Answer: D. All three statements are part of the Monetary Unit assumption:
only money-measurable transactions are recorded, the dollar is the unit of
measure, and it is assumed to be stable.
Question 6
Which of the following users is considered an EXTERNAL user of accounting
information?
A) A manager evaluating departmental performance
B) The CEO preparing the annual budget
C) A creditor assessing the company’s ability to repay a loan
D) The controller reconciling bank statements
: Answer: C. Creditors are external users. Internal users include managers, CEOs,
and controllers.
Question 7
Internal users of accounting information include:
A) Investors and creditors
B) Regulatory agencies
C) Managers and employees
D) Customers and suppliers
: Answer: C. Internal users are those within the organization, such as managers,
employees, and company officers.
Question 8
Which of the following is an example of financing activity?
A) Purchasing equipment for cash
pg. 3
, 4
B) Selling goods to a customer
C) Issuing shares of common stock to investors
D) Paying rent for the office space
: Answer: C. Financing activities include obtaining funds from owners (issuing
stock) and creditors (borrowing money).
Question 9
Which of the following is an example of an operating activity?
A) Purchasing a building
B) Paying salaries to employees
C) Repaying a bank loan
D) Selling equipment at a loss
: Answer: B. Operating activities are the day-to-day functions of a business,
including paying salaries, selling goods, and paying rent.
Question 10
The purchase of a long-term asset (e.g., a delivery truck) is classified as:
A) Operating activity
B) Financing activity
C) Investing activity
D) Neither; it is not reported on the statement of cash flows
: Answer: C. Investing activities involve the purchase and sale of long-term
assets and investments.
Question 11
pg. 4
