D103 Intermediate Accounting
I Exam Latest 2026/2027
Western Governors University
|Complete 50 Questions
Correctly Answered
Question 1: Adjustment to Assets: Equipment is depreciated over 10 years. Equipment cost is
$278,050. What is the adjusting journal entry?
Debit Depreciation Expense $27,805; Credit Accumulated Depreciation $27,805
Debit Depreciation Expense $28,000; Credit Accumulated Depreciation $28,000
Debit Equipment $27,805; Credit Depreciation Expense $27,805
Debit Accumulated Depreciation $27,805; Credit Equipment $27,805
Question 2: Adjustment to Liabilities: Calculate the annual accrual of interest on debt of $60,000 at a
rate of 10%. What is the adjusting journal entry?
Debit Interest Expense $6,000; Credit Interest Payable $6,000
Debit Interest Payable $6,000; Credit Interest Expense $6,000
Debit Interest Expense $60,000; Credit Interest Payable $60,000
Debit Interest Payable $60,000; Credit Interest Expense $60,000
, Question 3: Adjustment to Liabilities: Salaries earned but not paid total $14,320. What is the adjusted
journal entry?
Debit Salaries Expense $14,320; Credit Salaries Payable $14,320
Debit Salaries Payable $14,320; Credit Salaries Expense $14,320
Debit Salaries Expense $14,000; Credit Salaries Payable $14,000
Debit Cash $14,320; Credit Salaries Payable $14,320
Question 4: What describes the amount of time expected to elapse until an asset is realized or a
liability must be paid?
Solvency
Liquidity
Financial flexibility
Operating cycle
Question 5: What refers to a company's ability to pay its debts as they mature?
Profitability
Solvency
Liquidity
Financial flexibility
Question 6: Which term measures the ability of an enterprise to take effective actions to alter the
amounts and timing of cash flows to respond to unexpected needs?
Solvency
Financial flexibility
Liquidity
I Exam Latest 2026/2027
Western Governors University
|Complete 50 Questions
Correctly Answered
Question 1: Adjustment to Assets: Equipment is depreciated over 10 years. Equipment cost is
$278,050. What is the adjusting journal entry?
Debit Depreciation Expense $27,805; Credit Accumulated Depreciation $27,805
Debit Depreciation Expense $28,000; Credit Accumulated Depreciation $28,000
Debit Equipment $27,805; Credit Depreciation Expense $27,805
Debit Accumulated Depreciation $27,805; Credit Equipment $27,805
Question 2: Adjustment to Liabilities: Calculate the annual accrual of interest on debt of $60,000 at a
rate of 10%. What is the adjusting journal entry?
Debit Interest Expense $6,000; Credit Interest Payable $6,000
Debit Interest Payable $6,000; Credit Interest Expense $6,000
Debit Interest Expense $60,000; Credit Interest Payable $60,000
Debit Interest Payable $60,000; Credit Interest Expense $60,000
, Question 3: Adjustment to Liabilities: Salaries earned but not paid total $14,320. What is the adjusted
journal entry?
Debit Salaries Expense $14,320; Credit Salaries Payable $14,320
Debit Salaries Payable $14,320; Credit Salaries Expense $14,320
Debit Salaries Expense $14,000; Credit Salaries Payable $14,000
Debit Cash $14,320; Credit Salaries Payable $14,320
Question 4: What describes the amount of time expected to elapse until an asset is realized or a
liability must be paid?
Solvency
Liquidity
Financial flexibility
Operating cycle
Question 5: What refers to a company's ability to pay its debts as they mature?
Profitability
Solvency
Liquidity
Financial flexibility
Question 6: Which term measures the ability of an enterprise to take effective actions to alter the
amounts and timing of cash flows to respond to unexpected needs?
Solvency
Financial flexibility
Liquidity
