WGU D103 GAAP APPLICATION AND
ACCOUNTING STANDARDS EXAM 2026
COMPLETE Q AND A STUDY PACK
◉ Accounts Receivable Turnover
Answer: The ratio computed by dividing net sales by average (net)
accounts receivable outstanding during the year that measures the
number of times, on average, a company collects receivables during
the period.
◉ Aging Schedule
Answer: The analysis of customer balances by the length of time
they have been unpaid.
◉ Allowance Method
Answer: A method for recording uncollectible receivables where an
estimate is made of the expected uncollectible receivables.
◉ Bank Overdrafts
Answer: When a check is written for more than the amount in the
cash account.
, ◉ Cash
Answer: Resources that consist of coin, currency, money orders,
certified checks, cashier's checks, personal checks, and bank drafts.
◉ Cash Discounts (Sales Discounts)
Answer: Discounts offered as an inducement for prompt payment
communicated in terms that read, for example, 2/10, n/30.
◉ Cash Equivalents
Answer: Short-term, highly liquid temporary investments that are
both (a) readily convertible to known amounts of cash, and (b) so
near their maturity that they present insignificant risk of changes in
interest rates.
◉ Compensating Balances
Answer: Minimum cash balances required by a bank in support of
bank loans.
◉ Direct Write-off Method
Answer: A method for recording uncollectible receivables where no
entry is made until a specific account has been established as
uncollectible.
ACCOUNTING STANDARDS EXAM 2026
COMPLETE Q AND A STUDY PACK
◉ Accounts Receivable Turnover
Answer: The ratio computed by dividing net sales by average (net)
accounts receivable outstanding during the year that measures the
number of times, on average, a company collects receivables during
the period.
◉ Aging Schedule
Answer: The analysis of customer balances by the length of time
they have been unpaid.
◉ Allowance Method
Answer: A method for recording uncollectible receivables where an
estimate is made of the expected uncollectible receivables.
◉ Bank Overdrafts
Answer: When a check is written for more than the amount in the
cash account.
, ◉ Cash
Answer: Resources that consist of coin, currency, money orders,
certified checks, cashier's checks, personal checks, and bank drafts.
◉ Cash Discounts (Sales Discounts)
Answer: Discounts offered as an inducement for prompt payment
communicated in terms that read, for example, 2/10, n/30.
◉ Cash Equivalents
Answer: Short-term, highly liquid temporary investments that are
both (a) readily convertible to known amounts of cash, and (b) so
near their maturity that they present insignificant risk of changes in
interest rates.
◉ Compensating Balances
Answer: Minimum cash balances required by a bank in support of
bank loans.
◉ Direct Write-off Method
Answer: A method for recording uncollectible receivables where no
entry is made until a specific account has been established as
uncollectible.
