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WGU D102 Financial Accounting All
Terms |High Quality Questions With
Verified Answers 2026
Exam coverage for the Western Governors University D102 Financial Accounting
Final Exam includes the foundational principles and terminology essential to
financial accounting and reporting. It focuses on the accounting cycle, including
journal entries, ledgers, trial balances, and preparation of financial statements
such as the income statement, balance sheet, and statement of cash flows. The
exam evaluates understanding of key concepts such as assets, liabilities, equity,
revenue recognition, expenses, and accrual accounting. Emphasis is placed on
interpreting financial data, applying generally accepted accounting principles
(GAAP), analyzing transactions, adjusting entries, and understanding internal
controls, ensuring the ability to apply accounting knowledge in real-world
business and financial decision-making contexts.
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consolidated financial statements - correct-answer-statements that combines the
financial results of a "parent company" with other companies that it owns, call
subsidiaries
contingency - correct-answer-circumstance involving potential losses or gains that
will not be resolved until some future event occurs
contra account - correct-answer-an account that is offset or deducted from
another account
contributed capital - correct-answer-the portion of owners' equity contributed by
investors (the owners) in exchange for shares of stock
control activities - correct-answer-policies and procedures used by management
to meet their objectives
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control environment - correct-answer-the actions, policies, and procedures that
reflect the overall attitudes of top management about control and its importance
to the entity
control procedures - correct-answer-policies and procedures used by
management to meet their objectives
convertible preferred stock - correct-answer-preferred stock that can be
converted by the shareholder to common stock at a specified conversion rate
corporate charter - correct-answer-a written document filed by the founders of a
corporation with the state in which the corporation with the state in which the
corporation is registered. It details the major components of a company, such as
its objectives, structure, and planned operations
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cost of goods sold - correct-answer-the costs incurred to purchase or
manufacture the merchandise sold during a period
credit (abbreviated Cr) - correct-answer-an entry on the right side of a T-account
current assets - correct-answer-cash, accounts receivable, and inventory
current liabilities - correct-answer-those obligations expected to be paid within
one year, the most common being accounts payable
date of record - correct-answer-the date selected by a corporation's board of
directors on which the stockholders of record are identified as those who will
receive dividends
WGU D102 Financial Accounting All
Terms |High Quality Questions With
Verified Answers 2026
Exam coverage for the Western Governors University D102 Financial Accounting
Final Exam includes the foundational principles and terminology essential to
financial accounting and reporting. It focuses on the accounting cycle, including
journal entries, ledgers, trial balances, and preparation of financial statements
such as the income statement, balance sheet, and statement of cash flows. The
exam evaluates understanding of key concepts such as assets, liabilities, equity,
revenue recognition, expenses, and accrual accounting. Emphasis is placed on
interpreting financial data, applying generally accepted accounting principles
(GAAP), analyzing transactions, adjusting entries, and understanding internal
controls, ensuring the ability to apply accounting knowledge in real-world
business and financial decision-making contexts.
,2|Page
consolidated financial statements - correct-answer-statements that combines the
financial results of a "parent company" with other companies that it owns, call
subsidiaries
contingency - correct-answer-circumstance involving potential losses or gains that
will not be resolved until some future event occurs
contra account - correct-answer-an account that is offset or deducted from
another account
contributed capital - correct-answer-the portion of owners' equity contributed by
investors (the owners) in exchange for shares of stock
control activities - correct-answer-policies and procedures used by management
to meet their objectives
,3|Page
control environment - correct-answer-the actions, policies, and procedures that
reflect the overall attitudes of top management about control and its importance
to the entity
control procedures - correct-answer-policies and procedures used by
management to meet their objectives
convertible preferred stock - correct-answer-preferred stock that can be
converted by the shareholder to common stock at a specified conversion rate
corporate charter - correct-answer-a written document filed by the founders of a
corporation with the state in which the corporation with the state in which the
corporation is registered. It details the major components of a company, such as
its objectives, structure, and planned operations
, 4|Page
cost of goods sold - correct-answer-the costs incurred to purchase or
manufacture the merchandise sold during a period
credit (abbreviated Cr) - correct-answer-an entry on the right side of a T-account
current assets - correct-answer-cash, accounts receivable, and inventory
current liabilities - correct-answer-those obligations expected to be paid within
one year, the most common being accounts payable
date of record - correct-answer-the date selected by a corporation's board of
directors on which the stockholders of record are identified as those who will
receive dividends
