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WGU D774 OA EXAM (2026 EDITION) –
BUSINESS ACCOUNTING COMPLETE (212)
CURRENT TESTING QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
EXPLANATIONS|GUARANTEED PASS.
ACCOUNTING
Prepare with confidence using this WGU D774 OA Exam –
Business Accounting, designed to assess foundational
accounting and financial management knowledge. It focuses on
financial statements, bookkeeping principles, budgeting, cost
analysis, and accounting cycle processes. The exam strengthens
analytical and decision-making skills for business financial
operations. Suitable for WGU students preparing for D774
objective assessments in business accounting.
Exam Blueprint:
Accounting Principles & Concepts (15%) – 30 Qs
The Accounting Cycle (15%) – 30 Qs
Financial Statements (25%) – 50 Qs
Financial Ratio Analysis (15%) – 30 Qs
Managerial & Cost Accounting (20%) – 40 Qs
Budgeting & Decision Making (10%) – 20 Qs
Time limit (simulated): 2.5 hours (0.75 min/question)
Passing threshold: 70% (140/200)
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MULTIPLE CHOICE.
SECTION 1: ACCOUNTING PRINCIPLES & CONCEPTS (Questions 1–30)
1. The accounting equation is:
A) Assets = Liabilities + Owner's Equity
B) Assets + Liabilities = Owner's Equity
C) Assets + Owner's Equity = Liabilities
D) Revenues – Expenses = Net Income
Answer: A
Rationale: The fundamental accounting equation states that assets must
equal the sum of liabilities and owner's equity.
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2. Which accounting concept requires that revenue be recorded when
earned, regardless of when cash is received?
A) Matching principle
B) Revenue recognition principle
C) Cost principle
D) Full disclosure principle
Answer: B
Rationale: The revenue recognition principle dictates that revenue is
recognized in the period in which it is earned, not necessarily when cash is
received.
3. The matching principle requires that:
A) Assets equal liabilities
B) Expenses be recorded in the same period as the revenues they help
generate
C) Revenue be recorded when cash is received
D) All transactions be recorded at historical cost
Answer: B
Rationale: The matching principle pairs expenses with the revenues they
produce in the same accounting period.
4. Under the cost principle, assets should be recorded at:
A) Current market value
B) Their original purchase price (historical cost)
C) Fair value at year-end
D) Replacement cost
Answer: B
Rationale: The cost principle requires assets to be recorded at their original
acquisition cost, not current market value.
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5. What is the accounting period concept?
A) Financial statements are prepared for a specific period of time (e.g.,
month, quarter, year)
B) The business will continue operating indefinitely
C) Transactions are recorded at historical cost
D) All transactions are recorded in dollars
Answer: A
Rationale: The accounting period concept divides the life of a business into
artificial time periods for reporting purposes.
6. The going concern assumption means that:
A) The business will go bankrupt soon
B) The business is expected to continue operating indefinitely
C) Assets must be recorded at liquidation value
D) Liabilities will be paid immediately
Answer: B
Rationale: The going concern assumption assumes the business will remain
in operation for the foreseeable future.
7. Which principle requires that all significant information be disclosed in
financial statements?
A) Materiality principle
B) Full disclosure principle
C) Consistency principle
D) Conservatism principle
Answer: B
Rationale: The full disclosure principle requires that any information that
could affect users' decisions be included in financial statements.
WGU D774 OA EXAM (2026 EDITION) –
BUSINESS ACCOUNTING COMPLETE (212)
CURRENT TESTING QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
EXPLANATIONS|GUARANTEED PASS.
ACCOUNTING
Prepare with confidence using this WGU D774 OA Exam –
Business Accounting, designed to assess foundational
accounting and financial management knowledge. It focuses on
financial statements, bookkeeping principles, budgeting, cost
analysis, and accounting cycle processes. The exam strengthens
analytical and decision-making skills for business financial
operations. Suitable for WGU students preparing for D774
objective assessments in business accounting.
Exam Blueprint:
Accounting Principles & Concepts (15%) – 30 Qs
The Accounting Cycle (15%) – 30 Qs
Financial Statements (25%) – 50 Qs
Financial Ratio Analysis (15%) – 30 Qs
Managerial & Cost Accounting (20%) – 40 Qs
Budgeting & Decision Making (10%) – 20 Qs
Time limit (simulated): 2.5 hours (0.75 min/question)
Passing threshold: 70% (140/200)
, Page 2 of 67
MULTIPLE CHOICE.
SECTION 1: ACCOUNTING PRINCIPLES & CONCEPTS (Questions 1–30)
1. The accounting equation is:
A) Assets = Liabilities + Owner's Equity
B) Assets + Liabilities = Owner's Equity
C) Assets + Owner's Equity = Liabilities
D) Revenues – Expenses = Net Income
Answer: A
Rationale: The fundamental accounting equation states that assets must
equal the sum of liabilities and owner's equity.
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2. Which accounting concept requires that revenue be recorded when
earned, regardless of when cash is received?
A) Matching principle
B) Revenue recognition principle
C) Cost principle
D) Full disclosure principle
Answer: B
Rationale: The revenue recognition principle dictates that revenue is
recognized in the period in which it is earned, not necessarily when cash is
received.
3. The matching principle requires that:
A) Assets equal liabilities
B) Expenses be recorded in the same period as the revenues they help
generate
C) Revenue be recorded when cash is received
D) All transactions be recorded at historical cost
Answer: B
Rationale: The matching principle pairs expenses with the revenues they
produce in the same accounting period.
4. Under the cost principle, assets should be recorded at:
A) Current market value
B) Their original purchase price (historical cost)
C) Fair value at year-end
D) Replacement cost
Answer: B
Rationale: The cost principle requires assets to be recorded at their original
acquisition cost, not current market value.
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5. What is the accounting period concept?
A) Financial statements are prepared for a specific period of time (e.g.,
month, quarter, year)
B) The business will continue operating indefinitely
C) Transactions are recorded at historical cost
D) All transactions are recorded in dollars
Answer: A
Rationale: The accounting period concept divides the life of a business into
artificial time periods for reporting purposes.
6. The going concern assumption means that:
A) The business will go bankrupt soon
B) The business is expected to continue operating indefinitely
C) Assets must be recorded at liquidation value
D) Liabilities will be paid immediately
Answer: B
Rationale: The going concern assumption assumes the business will remain
in operation for the foreseeable future.
7. Which principle requires that all significant information be disclosed in
financial statements?
A) Materiality principle
B) Full disclosure principle
C) Consistency principle
D) Conservatism principle
Answer: B
Rationale: The full disclosure principle requires that any information that
could affect users' decisions be included in financial statements.
