WGU D774 INTRO TO BUSINESS
ACCOUNTING UPDATED ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
●● Accrual Accounting
Answer: An accounting method that records revenues and expenses
when they are earned or incurred, not when cash changes hands.
●● Accounting Equation
Answer: The formula Assets = Liabilities + Equity, which underpins the
balance sheet.
●● Assets
Answer: Resources owned by a business that have value and can
generate future benefit.
●● Assurance
Answer: Independent verification that financial information or internal
controls are reliable and comply with relevant standards.
●● Auditor
Answer: A professional who examines financial records and controls to
assess accuracy and compliance.
, ●● Balance Sheet
Answer: A snapshot of a company's financial position at a given time,
showing assets, liabilities, and equity.
●● Break-Even Point
Answer: The level of sales at which total revenue equals total costs,
resulting in neither profit nor loss.
●● Budget Creep
Answer: The gradual increase in a budget over time due to repeated
small increases that go unchallenged.
●● Budget Variance
Answer: The difference between what was budgeted and what actually
occurred in financial performance.
●● Budgeting
Answer: The process of planning and managing income and expenses
over a specific period to meet financial goals.
●● Continuing Professional Education
Answer: Educational activities that professionals engage in to maintain,
improve, and expand their skills and knowledge within their field.
ACCOUNTING UPDATED ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
●● Accrual Accounting
Answer: An accounting method that records revenues and expenses
when they are earned or incurred, not when cash changes hands.
●● Accounting Equation
Answer: The formula Assets = Liabilities + Equity, which underpins the
balance sheet.
●● Assets
Answer: Resources owned by a business that have value and can
generate future benefit.
●● Assurance
Answer: Independent verification that financial information or internal
controls are reliable and comply with relevant standards.
●● Auditor
Answer: A professional who examines financial records and controls to
assess accuracy and compliance.
, ●● Balance Sheet
Answer: A snapshot of a company's financial position at a given time,
showing assets, liabilities, and equity.
●● Break-Even Point
Answer: The level of sales at which total revenue equals total costs,
resulting in neither profit nor loss.
●● Budget Creep
Answer: The gradual increase in a budget over time due to repeated
small increases that go unchallenged.
●● Budget Variance
Answer: The difference between what was budgeted and what actually
occurred in financial performance.
●● Budgeting
Answer: The process of planning and managing income and expenses
over a specific period to meet financial goals.
●● Continuing Professional Education
Answer: Educational activities that professionals engage in to maintain,
improve, and expand their skills and knowledge within their field.
