WGU D774 INTRO TO BUSINESS ACCOUNTING EXAM SCRIPT VERIFIED QUESTIONS WITH ACCURATE ANSWERS

WGU D774 INTRO TO BUSINESS
ACCOUNTING EXAM SCRIPT VERIFIED
QUESTIONS WITH ACCURATE ANSWERS

●● What are Assets?
Answer: Resources owned by a business.


●● What are Liabilities?
Answer: Amounts owed by a business.


●● What is Owner's Equity?
Answer: Owner's claim on assets after liabilities are deducted.


●● Owner's Equity Formula
Answer: Assets − Liabilities


●● Borrow Money Effect?
Answer: Assets ↑ Liabilities ↑


●● Owner Investment Effect?
Answer: Assets ↑ Equity ↑

,●● Pay Off Debt Effect?
Answer: Assets ↓ Liabilities ↓


●● Revenue Effect?
Answer: Equity ↑


●● Expense Effect?
Answer: Equity ↓


●● What is the order of financial statements?
Answer: Income Statement
Statement of Owner's Equity
Balance Sheet
Statement of Cash Flows


●● Which statement is prepared first?
Answer: Income Statement


●● Which statement is prepared second?
Answer: Statement of Owner's Equity

, ●● Which statement is prepared third?
Answer: Balance Sheet


●● Which statement is prepared fourth?
Answer: Statement of Cash Flows


●● Income Statement reports?
Answer: Revenue, Expenses, Gains, Losses


●● Balance Sheet reports?
Answer: Assets, Liabilities, Equity


●● Statement of Cash Flows reports?
Answer: Cash inflows and outflows


●● Income Statement covers?
Answer: Period of time


●● Balance Sheet covers?
Answer: Specific date


●● Financial Accounting users?