WGU D102 FINANCIAL ACCOUNTING OA
ACTUAL TEST PAPER WITH CORRECT
ANSWERS
◉ book value.
Answer: for a long-term operating asset, the asset's original cost less
any accumulated depreciation
◉ business documents.
Answer: records of transactions used as the basis for recording
accounting entries; include invoices, check stubs, receipts, and
similar business papers
◉ calender year.
Answer: an entity's reporting year, from January 1 to December 31
◉ cash.
Answer: coins, currency, money orders, checks, and funds on deposit
with financial institutions
◉ cash basis accounting.
,Answer: a system of accounting in which transactions are recorded
and revenues and expenses are recognized only when cash is
received or paid
◉ cash collection.
Answer: the recovery of cash from a business or individual with
which you have previously entered into a transaction
◉ cash dividends.
Answer: a cash distribution of earnings to stockholders
◉ cash equivalents.
Answer: short-term, highly liquid investments such as Treasury bills,
commercial paper, and money market funds
◉ chart of accounts.
Answer: a systematic listing of all accounts used by a company
◉ closing entires.
Answer: entries that reduce all nominal (temporary) accounts to a
zero balance at the end of each accounting period, transferring their
pre-closing balances to a permanent balance sheet account
, ◉ common stock.
Answer: the most frequently issued class of stock; typically provides
a voting right but is secondary to preferred stock in dividend and
liquidation rights
◉ compound interest.
Answer: interest earned on you interest
◉ compound journal entry.
Answer: a journal entry that involves more than one debit or more
than one credit or both
◉ consignment.
Answer: an arrangement whereby merchandise owned by one party,
the consignor, is sold by another party, the consignee, usually on a
commission basis
◉ consolidated financial statements.
Answer: statements that combines the financial results of a "parent
company" with other companies that it owns, call subsidiaries
◉ contingency.
Answer: circumstance involving potential losses or gains that will
not be resolved until some future event occurs
ACTUAL TEST PAPER WITH CORRECT
ANSWERS
◉ book value.
Answer: for a long-term operating asset, the asset's original cost less
any accumulated depreciation
◉ business documents.
Answer: records of transactions used as the basis for recording
accounting entries; include invoices, check stubs, receipts, and
similar business papers
◉ calender year.
Answer: an entity's reporting year, from January 1 to December 31
◉ cash.
Answer: coins, currency, money orders, checks, and funds on deposit
with financial institutions
◉ cash basis accounting.
,Answer: a system of accounting in which transactions are recorded
and revenues and expenses are recognized only when cash is
received or paid
◉ cash collection.
Answer: the recovery of cash from a business or individual with
which you have previously entered into a transaction
◉ cash dividends.
Answer: a cash distribution of earnings to stockholders
◉ cash equivalents.
Answer: short-term, highly liquid investments such as Treasury bills,
commercial paper, and money market funds
◉ chart of accounts.
Answer: a systematic listing of all accounts used by a company
◉ closing entires.
Answer: entries that reduce all nominal (temporary) accounts to a
zero balance at the end of each accounting period, transferring their
pre-closing balances to a permanent balance sheet account
, ◉ common stock.
Answer: the most frequently issued class of stock; typically provides
a voting right but is secondary to preferred stock in dividend and
liquidation rights
◉ compound interest.
Answer: interest earned on you interest
◉ compound journal entry.
Answer: a journal entry that involves more than one debit or more
than one credit or both
◉ consignment.
Answer: an arrangement whereby merchandise owned by one party,
the consignor, is sold by another party, the consignee, usually on a
commission basis
◉ consolidated financial statements.
Answer: statements that combines the financial results of a "parent
company" with other companies that it owns, call subsidiaries
◉ contingency.
Answer: circumstance involving potential losses or gains that will
not be resolved until some future event occurs
