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WGU D102 OBJECTIVE ASSESSMENT V1 AND V2 NEWEST 2026
TEST BANK | D102 FINANCIAL ACCOUNTING OA EXAM WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS /
ALREADY GRADED A+ (MOST RECENT!!)
Here are some financial statement items for the year for a company.
Cash received from customers
Cash received from the sale of land
Cash paid for dividends
Cash paid to employees for wages
Cash paid to purchase a new building
Cash paid for rent
Cash received as new investment from owners
Which set of items is a list of items that are used in computing the
company's financing cash flow for the year? ......ANSWER......Cash paid
for dividends and cash received as new investment from owners.
Here are some financial statement items for a company.
Net income
Cash flow from financing activities
Cash balance at the beginning of the year
Sales Cash flow from investing activities
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Accounts receivable
Retained earnings at the beginning of the year
Cash flow from operating activities
What items are used in computing the company's ending cash balance
for the year? ......ANSWER......Cash balance at the beginning of the year,
cash flow from operating activities, cash flow from investing activities,
and cash flow from financing activities.
How is revenue typically recorded with debits and credits?
......ANSWER......As a credit, representing an increase in equity.
What is the proper way to record an increase in an asset account and an
increase in an equity account? ......ANSWER......Asset, debit; equity,
credit
A company was started last year when the shareholders invested
$70,000 cash into it. At that time, the company also borrowed $100,000
cash from a local bank. The company used $140,000 cash to purchase
inventory for $140,000. This year the company sold all of the inventory
for $95,000 cash (and that is not a typographical error; the amount
received for all of the inventory was only $95,000 cash).
Which account balance is correct with respect to this company's
balance sheet after the sale of the inventory? ......ANSWER......Total
owners' equity is $25,000.
On January 1, a company had these assets, liabilities, and equities:
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Cash $100
Inventory $140
Accounts payable $70
Paid-in capital $150
Retained earnings $20
During the year, the company entered into these transactions:
Selling inventory costing $140 for a total of $200; cash of $30 was
received, and the remaining $170 was put on account.
Paying cash for rent of $45.
Paying cash dividends of $30.
What is this company's total equity at the end of the year?
......ANSWER......$155
A company made a $3,000 cash payment on a loan. Of the $3,000 cash
paid, $2,400 was for interest expense and $600 was a payment to
reduce the loan balance.
What is included in the journal entry necessary to record this loan
payment? ......ANSWER......Debit to interest expense for $2,400.
A company was started last year when the shareholders invested $70
cash into the company. At that time, the organization also borrowed
$30 cash from a local bank. The organization used $80 cash to purchase
inventory for $80. This year the company sold all of the inventory for
$55 cash. (That is not a typographical error; the amount received for all
of the inventory was only $55 cash.)
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Assuming that there is no interest on the loan, what is true with respect
to this company's balance sheet after the sale of the inventory?
......ANSWER......Total owners' equity is $45.
How are expenses typically recorded with debits and credits?
......ANSWER......As a debit, representing a reduction in equity.
A company purchased inventory for $5,000. The company paid $1,000
cash and the remainder of the purchase was made on account.
What is included in the journal entry necessary to record this inventory
purchase? ......ANSWER......Credit to accounts payable for $4,000.
A company sold inventory that cost $1,300 for $2,000. It received $500
cash and the remainder was on account.
What is included in the journal entry or entries necessary to record this
sale of inventory? ......ANSWER......Debit to accounts receivable for
$1,500.
On August 1 of Year 1, a company paid $7,200 for two years' rent. The
rental period starts on August 1 of Year 1.
Which debit or credit is correctly included in the adjusting journal entry
necessary on December 31 of Year 1? ......ANSWER......Debit to rent
expense for $1,500.
WGU D102 OBJECTIVE ASSESSMENT V1 AND V2 NEWEST 2026
TEST BANK | D102 FINANCIAL ACCOUNTING OA EXAM WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS /
ALREADY GRADED A+ (MOST RECENT!!)
Here are some financial statement items for the year for a company.
Cash received from customers
Cash received from the sale of land
Cash paid for dividends
Cash paid to employees for wages
Cash paid to purchase a new building
Cash paid for rent
Cash received as new investment from owners
Which set of items is a list of items that are used in computing the
company's financing cash flow for the year? ......ANSWER......Cash paid
for dividends and cash received as new investment from owners.
Here are some financial statement items for a company.
Net income
Cash flow from financing activities
Cash balance at the beginning of the year
Sales Cash flow from investing activities
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Accounts receivable
Retained earnings at the beginning of the year
Cash flow from operating activities
What items are used in computing the company's ending cash balance
for the year? ......ANSWER......Cash balance at the beginning of the year,
cash flow from operating activities, cash flow from investing activities,
and cash flow from financing activities.
How is revenue typically recorded with debits and credits?
......ANSWER......As a credit, representing an increase in equity.
What is the proper way to record an increase in an asset account and an
increase in an equity account? ......ANSWER......Asset, debit; equity,
credit
A company was started last year when the shareholders invested
$70,000 cash into it. At that time, the company also borrowed $100,000
cash from a local bank. The company used $140,000 cash to purchase
inventory for $140,000. This year the company sold all of the inventory
for $95,000 cash (and that is not a typographical error; the amount
received for all of the inventory was only $95,000 cash).
Which account balance is correct with respect to this company's
balance sheet after the sale of the inventory? ......ANSWER......Total
owners' equity is $25,000.
On January 1, a company had these assets, liabilities, and equities:
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Cash $100
Inventory $140
Accounts payable $70
Paid-in capital $150
Retained earnings $20
During the year, the company entered into these transactions:
Selling inventory costing $140 for a total of $200; cash of $30 was
received, and the remaining $170 was put on account.
Paying cash for rent of $45.
Paying cash dividends of $30.
What is this company's total equity at the end of the year?
......ANSWER......$155
A company made a $3,000 cash payment on a loan. Of the $3,000 cash
paid, $2,400 was for interest expense and $600 was a payment to
reduce the loan balance.
What is included in the journal entry necessary to record this loan
payment? ......ANSWER......Debit to interest expense for $2,400.
A company was started last year when the shareholders invested $70
cash into the company. At that time, the organization also borrowed
$30 cash from a local bank. The organization used $80 cash to purchase
inventory for $80. This year the company sold all of the inventory for
$55 cash. (That is not a typographical error; the amount received for all
of the inventory was only $55 cash.)
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Assuming that there is no interest on the loan, what is true with respect
to this company's balance sheet after the sale of the inventory?
......ANSWER......Total owners' equity is $45.
How are expenses typically recorded with debits and credits?
......ANSWER......As a debit, representing a reduction in equity.
A company purchased inventory for $5,000. The company paid $1,000
cash and the remainder of the purchase was made on account.
What is included in the journal entry necessary to record this inventory
purchase? ......ANSWER......Credit to accounts payable for $4,000.
A company sold inventory that cost $1,300 for $2,000. It received $500
cash and the remainder was on account.
What is included in the journal entry or entries necessary to record this
sale of inventory? ......ANSWER......Debit to accounts receivable for
$1,500.
On August 1 of Year 1, a company paid $7,200 for two years' rent. The
rental period starts on August 1 of Year 1.
Which debit or credit is correctly included in the adjusting journal entry
necessary on December 31 of Year 1? ......ANSWER......Debit to rent
expense for $1,500.
