WGU D774 INTRO TO BUSINESS ACCOUNTING |2025-2026 LATEST
UPDATED| 140 REAL EXAM AND COMPLETE QUESTIONS AND
ANSWERS | 100% RATED CORRECT | 100% VERFIED | ALREADY
GRADED A+
When were the earliest forms of rudimentary bookkeeping developed? - (answer)About 5,000
years ago by the Mesopotamians, Babylonians, and ancient Egyptians
What was one type of dealing that contributed to the Great Wall Street Crash of 1929? -
(answer)Operating pump and dump plans
How can a company's financial statements be used to attract new investors? - (answer)By
documenting past performance
Who are the primary users of management accounting information? - (answer)Internal users
Which time interval is covered by a balance sheet? - (answer)A snapshot prepared as of a
specific date
Who are the primary users of managerial accounting information? - (answer)Decision makers
inside a company
,Why might one company's management accounting system differ from that of another
company's? - (answer)Competitive needs
How does the Securities and Exchange Commission (SEC) influence accounting standard setting
in the United States? - (answer)It establishes a complete set of accounting standards that compete
with the Financial Accounting Standards Board rules.
What is an initial public offering (IPO)? - (answer)The first issuance of ownership shares to the
public
Who selects a corporation's chief executive officer (CEO)? - (answer)Board of directors
What are the two types of taxation corporations are subject to? - (answer)Income tax paid by the
corporation and dividend income tax paid by individual shareholders
How is gross profit computed? - (answer)Sales minus cost of goods sold
Which item is reported among a company's operating expenses? - (answer)Wages and salary
expense
,Which information is contained in gross margin? - (answer)The excess of the selling price of
inventory over the purchase cost of inventory
What is the cost of buying products sold in a retail store called? - (answer)Cost of goods sold
Which number is referred to as the bottom line of the income statement? - (answer)Net income
How does net income impact the reported amount of a company's owners' equity? - (answer)Net
income increases owners' equity.
What is the largest expense for any retail company? - (answer)Cost of goods sold
What is revenue? - (answer)Amount a company earns from the sale of goods and services
Which item should be reported as an expense in the income statement?
, Disbursement for the monthly electricity bill, Receipts from customers, Loan proceeds from a
bank, Funds used to purchase a new building - (answer)Disbursement for the monthly electricity
bill
What is an income statement? - (answer)Report of the revenues and expenses of a company
during a period
Which summary information does a balance sheet provide to a decision-maker? -
(answer)Financial position of a company at a particular date
Which items are liquid assets? - (answer)Cash and accounts receivable
Why is cash usually the first asset listed in a balance sheet? - (answer)It is the most liquid.
When a renter pays a landlord in advance, the landlord records the amount received as unearned
revenue, a liability. Why is this rent received in advance considered to be a liability? -
(answer)The landlord owes rental services to the tenant who has paid in advance.
Which item is a liability?
UPDATED| 140 REAL EXAM AND COMPLETE QUESTIONS AND
ANSWERS | 100% RATED CORRECT | 100% VERFIED | ALREADY
GRADED A+
When were the earliest forms of rudimentary bookkeeping developed? - (answer)About 5,000
years ago by the Mesopotamians, Babylonians, and ancient Egyptians
What was one type of dealing that contributed to the Great Wall Street Crash of 1929? -
(answer)Operating pump and dump plans
How can a company's financial statements be used to attract new investors? - (answer)By
documenting past performance
Who are the primary users of management accounting information? - (answer)Internal users
Which time interval is covered by a balance sheet? - (answer)A snapshot prepared as of a
specific date
Who are the primary users of managerial accounting information? - (answer)Decision makers
inside a company
,Why might one company's management accounting system differ from that of another
company's? - (answer)Competitive needs
How does the Securities and Exchange Commission (SEC) influence accounting standard setting
in the United States? - (answer)It establishes a complete set of accounting standards that compete
with the Financial Accounting Standards Board rules.
What is an initial public offering (IPO)? - (answer)The first issuance of ownership shares to the
public
Who selects a corporation's chief executive officer (CEO)? - (answer)Board of directors
What are the two types of taxation corporations are subject to? - (answer)Income tax paid by the
corporation and dividend income tax paid by individual shareholders
How is gross profit computed? - (answer)Sales minus cost of goods sold
Which item is reported among a company's operating expenses? - (answer)Wages and salary
expense
,Which information is contained in gross margin? - (answer)The excess of the selling price of
inventory over the purchase cost of inventory
What is the cost of buying products sold in a retail store called? - (answer)Cost of goods sold
Which number is referred to as the bottom line of the income statement? - (answer)Net income
How does net income impact the reported amount of a company's owners' equity? - (answer)Net
income increases owners' equity.
What is the largest expense for any retail company? - (answer)Cost of goods sold
What is revenue? - (answer)Amount a company earns from the sale of goods and services
Which item should be reported as an expense in the income statement?
, Disbursement for the monthly electricity bill, Receipts from customers, Loan proceeds from a
bank, Funds used to purchase a new building - (answer)Disbursement for the monthly electricity
bill
What is an income statement? - (answer)Report of the revenues and expenses of a company
during a period
Which summary information does a balance sheet provide to a decision-maker? -
(answer)Financial position of a company at a particular date
Which items are liquid assets? - (answer)Cash and accounts receivable
Why is cash usually the first asset listed in a balance sheet? - (answer)It is the most liquid.
When a renter pays a landlord in advance, the landlord records the amount received as unearned
revenue, a liability. Why is this rent received in advance considered to be a liability? -
(answer)The landlord owes rental services to the tenant who has paid in advance.
Which item is a liability?
