WGU D103 FINANCIAL STATEMENTS AND
ACCOUNTING PRINCIPLES EXAM SCRIPT
2026 FULL PRACTICE QUESTIONS AND
ANSWERS
◉ Full Disclosure Principle
Answer: The principle that information should be provided if it is of
sufficient importance to influence the judgment and decisions of an
informed user.
◉ Going Concern Assumption
Answer: An assumption that states an enterprise will continue in
operation long enough to carry out its existing objectives and
commitments.
◉ Historical Cost Principle
Answer: An accounting principle that states that assets and
liabilities should be recorded at their acquisition price.
◉ Income Statement
Answer: The financial statement which measures the results of
operations during the period.
,◉ Intangible Assets
Answer: Assets that do not have physical substance and are not
financial instruments, such as patents, copyrights, franchises,
goodwill, trademarks, trade names, and customer lists.
◉ Interpretations
Answer: Pronouncements issued by the FASB, which represent
modifications or extensions of existing standards.
◉ Intraperiod Tax Allocation
Answer: The procedure of associating income taxes with the specific
item that directly affects the income taxes for the period.
◉ Investing Activities
Answer: Activities that include making and collecting loans and
acquiring and disposing of investments (both debt and equity) and
property, plant, and equipment.
◉ Liquidity
Answer: The amount of time that is expected to elapse until an asset
is realized or otherwise converted into cash or until a liability has to
be paid.
, ◉ Long-term Liabilities
Answer: Obligations that are not reasonably expected to be
liquidated within a year or the normal operating cycle, whichever is
longer, but instead, are payable at some date beyond that time.
◉ Materiality
Answer: The constraint of determining if an item is important
enough to likely influence the decision of a reasonably prudent
investor or creditor.
◉ Modified All-inclusive Concept
Answer: A concept that states that companies record most items,
including unusual or infrequent ones, as part of net income
◉ Monetary Unit Assumption
Answer: An assumption stating that money is the common
denominator of economic activity and provides an appropriate basis
for accounting measurement and analysis.
◉ Multiple-step Income Statement
Answer: An income statement that shows numerous steps in
determining net income (or net loss), including operating and
nonoperating sections.
ACCOUNTING PRINCIPLES EXAM SCRIPT
2026 FULL PRACTICE QUESTIONS AND
ANSWERS
◉ Full Disclosure Principle
Answer: The principle that information should be provided if it is of
sufficient importance to influence the judgment and decisions of an
informed user.
◉ Going Concern Assumption
Answer: An assumption that states an enterprise will continue in
operation long enough to carry out its existing objectives and
commitments.
◉ Historical Cost Principle
Answer: An accounting principle that states that assets and
liabilities should be recorded at their acquisition price.
◉ Income Statement
Answer: The financial statement which measures the results of
operations during the period.
,◉ Intangible Assets
Answer: Assets that do not have physical substance and are not
financial instruments, such as patents, copyrights, franchises,
goodwill, trademarks, trade names, and customer lists.
◉ Interpretations
Answer: Pronouncements issued by the FASB, which represent
modifications or extensions of existing standards.
◉ Intraperiod Tax Allocation
Answer: The procedure of associating income taxes with the specific
item that directly affects the income taxes for the period.
◉ Investing Activities
Answer: Activities that include making and collecting loans and
acquiring and disposing of investments (both debt and equity) and
property, plant, and equipment.
◉ Liquidity
Answer: The amount of time that is expected to elapse until an asset
is realized or otherwise converted into cash or until a liability has to
be paid.
, ◉ Long-term Liabilities
Answer: Obligations that are not reasonably expected to be
liquidated within a year or the normal operating cycle, whichever is
longer, but instead, are payable at some date beyond that time.
◉ Materiality
Answer: The constraint of determining if an item is important
enough to likely influence the decision of a reasonably prudent
investor or creditor.
◉ Modified All-inclusive Concept
Answer: A concept that states that companies record most items,
including unusual or infrequent ones, as part of net income
◉ Monetary Unit Assumption
Answer: An assumption stating that money is the common
denominator of economic activity and provides an appropriate basis
for accounting measurement and analysis.
◉ Multiple-step Income Statement
Answer: An income statement that shows numerous steps in
determining net income (or net loss), including operating and
nonoperating sections.
