WGU D102 Financial Accounting Exam | Questions with Verified Answers | Graded A

WGU D102 Financial Accounting Exam | Questions with Verified Answers | Graded A What information is contained in a balance sheet? - ANSWER -Report of a company's financial position as of a point in time. What is an owners' equity item? Accounts receivable Loans payable Capital stock Cash - ANSWER -Capital Stock A company ended July with assets of $150,000 and owner's equity of $60,000. What is the amount of liabilities at the end of July? - ANSWER -$90,000 What is reported in a multiple-step income statement that is not reported in a single-step income statement? - ANSWER -Gross Profit How is gross profit computed? - ANSWER -Sales minus cost of goods sold. The following are some accounts from a company's financial statements: (accounts receivable, cost of goods sold, cash, retained earnings, sales, inventory, income tax expense, accounts payable) Which set is a list of all of the items that are used in computing this company's net income? - ANSWER -Sales, cost of goods sold, and income tax expense. What cash flow category contains activities whereby cash is obtained from or repaid to owners or creditors? - ANSWER -Financing Here are some financial statement items for the year for a company. Cash received from customers Cash received from the sale of land Cash paid for dividends Cash paid to employees for wages Cash paid to purchase a new building Cash paid for rent Cash received as new investment from owners Which set of items is a list of items that are used in computing the company's financing cash flow for the year? - ANSWER -Cash paid for dividends and cash received as new investment from owners. Here are some financial statement items for a company. Net income Cash flow from financing activities Cash balance at the beginning of the year Sales Cash flow from investing activities Accounts receivable Retained earnings at the beginning of the year Cash flow from operating activities What items are used in computing the company's ending cash balance for the year? - ANSWER 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 is revenue typically recorded with debits and credits? - ANSWER -As a credit, representing an increase in equity. What is the proper way to record an increase in an asset account and an increase in an equity account? - ANSWER -Asset, debit; equity, credit How are expenses typically recorded with debits and credits? - ANSWER -As a debit, representing an increase in assets.