1|Page
WGU D102 OBJECTIVE ASSESSMENT NEWEST 2026 TEST BANK
| D102 FINANCIAL ACCOUNTING OA EXAM WITH COMPLETE
QUESTIONS AND CORRECT VERIFIED ANSWERS / ALREADY
GRADED A+ (MOST RECENT!!)
What items are used in computing the company's ending cash balance
for the year?
a. Cash balance at the beginning of the year, cash flow from operating
activities, cash flow from investing activities, and cash flow from
financing activities.
b. Net income, sales, cash flow from operating activities, cash flow from
investing activities, and cash flow from financing activities.
c. Cash balance at the beginning of the year, net income, cash flow from
investing activities, and retained earnings at the beginning of the year.
d. Retained earnings at the beginning of the year, cash flow from
operating activities, accounts receivable, cash flow from investing
activities, and cash flow from financing activities. ......ANSWER......a.
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 are expenses typically recorded with debits and credits?
a. As a credit, representing a reduction in assets.
,2|Page
b. As a debit, representing an increase in assets.
c. As a debit, representing a reduction in equity.
d. As a credit, representing an increase in equity. ......ANSWER......c. As a
debit, representing a reduction in equity.
The revenue recognition principle states that revenues are recorded
when two main criteria have been met. One of those criteria is that
cash has been collected or collectability is reasonably assured.
What is the other criterion?
a. Expense targets for the period have been reached.
b. Overhead has been properly allocated.
c. All taxes - sales tax, income tax, and value-added tax - have been
paid.
d. The earnings process is substantially complete. ......ANSWER......d.
The earnings process is substantially complete.
What information is contained in a balance sheet?
a Report of a company's operating performance during a period of time.
b Report of a company's financial position during a period of time.
c Report of a company's operating performance as of a point in time.
d Report of a company's financial position as of a point in time.
......ANSWER......d Report of a company's financial position as of a point
in time.
,3|Page
What is reported in a multiple-step income statement that is not
reported in a single-step income statement?
Gross profit
Retained earnings
Dividends
Cash collected from customers ......ANSWER......Gross profit
How is gross profit computed?
Sales minus cost of goods sold.
Total revenues minus total expenses.
Cash minus dividends.
Sales minus operating expenses. ......ANSWER......Sales minus cost of
goods sold.
Which set is a list of all of the items that are used in computing this
company's net income?
Cash, retained earnings, and accounts payable.
Sales, cost of goods sold, and income tax expense.
Inventory, accounts payable, and retained earnings.
, 4|Page
Cash, accounts receivable, and accounts payable. ......ANSWER......Sales,
cost of goods sold, and income tax expense.
Which set of items is a list of items that are used in computing the
company's financing cash flow for the year?
Cash paid to purchase a new building and cash received from the sale of
land.
Cash paid for dividends and cash received as new investment from
owners.
Cash received from customers and cash paid for rent.
Cash received from customers, and cash paid to employees for wages.
......ANSWER......Cash paid for dividends and cash received as new
investment from owners.
How are expenses typically recorded with debits and credits?
As a credit, representing a reduction in assets.
As a debit, representing an increase in assets.
As a debit, representing a reduction in equity.
As a credit, representing an increase in equity. ......ANSWER......As a
debit, representing a reduction in equity.
WGU D102 OBJECTIVE ASSESSMENT NEWEST 2026 TEST BANK
| D102 FINANCIAL ACCOUNTING OA EXAM WITH COMPLETE
QUESTIONS AND CORRECT VERIFIED ANSWERS / ALREADY
GRADED A+ (MOST RECENT!!)
What items are used in computing the company's ending cash balance
for the year?
a. Cash balance at the beginning of the year, cash flow from operating
activities, cash flow from investing activities, and cash flow from
financing activities.
b. Net income, sales, cash flow from operating activities, cash flow from
investing activities, and cash flow from financing activities.
c. Cash balance at the beginning of the year, net income, cash flow from
investing activities, and retained earnings at the beginning of the year.
d. Retained earnings at the beginning of the year, cash flow from
operating activities, accounts receivable, cash flow from investing
activities, and cash flow from financing activities. ......ANSWER......a.
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 are expenses typically recorded with debits and credits?
a. As a credit, representing a reduction in assets.
,2|Page
b. As a debit, representing an increase in assets.
c. As a debit, representing a reduction in equity.
d. As a credit, representing an increase in equity. ......ANSWER......c. As a
debit, representing a reduction in equity.
The revenue recognition principle states that revenues are recorded
when two main criteria have been met. One of those criteria is that
cash has been collected or collectability is reasonably assured.
What is the other criterion?
a. Expense targets for the period have been reached.
b. Overhead has been properly allocated.
c. All taxes - sales tax, income tax, and value-added tax - have been
paid.
d. The earnings process is substantially complete. ......ANSWER......d.
The earnings process is substantially complete.
What information is contained in a balance sheet?
a Report of a company's operating performance during a period of time.
b Report of a company's financial position during a period of time.
c Report of a company's operating performance as of a point in time.
d Report of a company's financial position as of a point in time.
......ANSWER......d Report of a company's financial position as of a point
in time.
,3|Page
What is reported in a multiple-step income statement that is not
reported in a single-step income statement?
Gross profit
Retained earnings
Dividends
Cash collected from customers ......ANSWER......Gross profit
How is gross profit computed?
Sales minus cost of goods sold.
Total revenues minus total expenses.
Cash minus dividends.
Sales minus operating expenses. ......ANSWER......Sales minus cost of
goods sold.
Which set is a list of all of the items that are used in computing this
company's net income?
Cash, retained earnings, and accounts payable.
Sales, cost of goods sold, and income tax expense.
Inventory, accounts payable, and retained earnings.
, 4|Page
Cash, accounts receivable, and accounts payable. ......ANSWER......Sales,
cost of goods sold, and income tax expense.
Which set of items is a list of items that are used in computing the
company's financing cash flow for the year?
Cash paid to purchase a new building and cash received from the sale of
land.
Cash paid for dividends and cash received as new investment from
owners.
Cash received from customers and cash paid for rent.
Cash received from customers, and cash paid to employees for wages.
......ANSWER......Cash paid for dividends and cash received as new
investment from owners.
How are expenses typically recorded with debits and credits?
As a credit, representing a reduction in assets.
As a debit, representing an increase in assets.
As a debit, representing a reduction in equity.
As a credit, representing an increase in equity. ......ANSWER......As a
debit, representing a reduction in equity.
