WGU D103 Pre-Assessment: Intermediate Accounting I Units
5-7 (JMV1) (PJMV) | Questions with 100% Correct Answers |
Verified | Latest Update Latest 2025/2026 COMPLETE
FREQUENTLY MOST TESTED QUESTIONS WITH COMPLETE
SOLUTION /GET IT 100% ACCURATE! (Graded A+)
A company is putting together a list of transactions that are affected by
the time value of money. Which transaction should be included in this
list? - ✔✔-ANSWER-✔✔-Long-term leases
A company has current-year cost of goods sold of $150,000, ending
inventory of $40,000, and prior-year ending inventory of $60,000. What
is the inventory turnover ratio, rounded to two decimal places? - ✔✔-
ANSWER-✔✔-3.00
RATIONALE
1) Inventory turnover = Cost of products sold/Inventory.
2) Inventory days = 365 / Inventory turnover.
Ave. Inventory = ($40,000+$60,000)/2 = $50,000
$150,000/$50,000=3.00
,A company has an unadjusted debit balance in the Allowance for
Doubtful Accounts of $10,000 and the following aging schedule:
Name of CustomerTotalUnder 30 days30-60days60-90daysOver 90
daysA$ 55,000$ 30,000$ 20,000$
5,000B112,00090,00010,0005,0007,000C106,00065,00022,00015,0004,
000D43,00035,0002,0005,0001,000Total$ 316,000.00$ 220,000.00$
54,000.00$ 25,000.00$ 17,000.00Percent Uncollectible1%30%25%35%
What amount should be recorded as the Bad Debt Expense? - ✔✔-
ANSWER-✔✔-$40,600
RATIONALE
$30,600+ $10,000 =$40,600
The December 31, 2019, trial balance for a company reported a
$100,000 debit balance in accounts receivable. Management estimates
that 10% of accounts receivable may not be collected. Prior to year-end
adjustment, there was a $1,000 credit balance in the allowance for
doubtful accounts.What net realizable value of accounts receivable will
be reported on this company's December 31, 2019, balance sheet? -
✔✔-ANSWER-✔✔-$90,000
RATIONALE
$100,000 x .10 = $10,000
$100,000 - $10,000 = $90,000
, A company deposits $10,000 in a bank where it will earn simple interest
of 10% annually. What is the amount of interest earned in Year 2? - ✔✔-
ANSWER-✔✔-$1,000
RATIONALE
$10,000 x .10 = $1000
A company has net sales of $1,340,000, beginning accounts receivable
of $500,000, and ending accounts receivable of $650,000. How many
days does it take the company to collect its accounts receivable? - ✔✔-
ANSWER-✔✔-156.6
$1,340,000 / ($500,000 + $650,000)/2 =
$1,340,,000 = 2.33
RATIONALE
365/2.33= 156.6 days= 2.33
A company needs to have $70,000 in cash at the end of four years. The
company can invest the cash now in a money market account that will
return 6% interest compounded annually. Using a 6% interest rate, the
implied annual interest is $70,000 × 0.06 = $4,200. The following
information is given:
5-7 (JMV1) (PJMV) | Questions with 100% Correct Answers |
Verified | Latest Update Latest 2025/2026 COMPLETE
FREQUENTLY MOST TESTED QUESTIONS WITH COMPLETE
SOLUTION /GET IT 100% ACCURATE! (Graded A+)
A company is putting together a list of transactions that are affected by
the time value of money. Which transaction should be included in this
list? - ✔✔-ANSWER-✔✔-Long-term leases
A company has current-year cost of goods sold of $150,000, ending
inventory of $40,000, and prior-year ending inventory of $60,000. What
is the inventory turnover ratio, rounded to two decimal places? - ✔✔-
ANSWER-✔✔-3.00
RATIONALE
1) Inventory turnover = Cost of products sold/Inventory.
2) Inventory days = 365 / Inventory turnover.
Ave. Inventory = ($40,000+$60,000)/2 = $50,000
$150,000/$50,000=3.00
,A company has an unadjusted debit balance in the Allowance for
Doubtful Accounts of $10,000 and the following aging schedule:
Name of CustomerTotalUnder 30 days30-60days60-90daysOver 90
daysA$ 55,000$ 30,000$ 20,000$
5,000B112,00090,00010,0005,0007,000C106,00065,00022,00015,0004,
000D43,00035,0002,0005,0001,000Total$ 316,000.00$ 220,000.00$
54,000.00$ 25,000.00$ 17,000.00Percent Uncollectible1%30%25%35%
What amount should be recorded as the Bad Debt Expense? - ✔✔-
ANSWER-✔✔-$40,600
RATIONALE
$30,600+ $10,000 =$40,600
The December 31, 2019, trial balance for a company reported a
$100,000 debit balance in accounts receivable. Management estimates
that 10% of accounts receivable may not be collected. Prior to year-end
adjustment, there was a $1,000 credit balance in the allowance for
doubtful accounts.What net realizable value of accounts receivable will
be reported on this company's December 31, 2019, balance sheet? -
✔✔-ANSWER-✔✔-$90,000
RATIONALE
$100,000 x .10 = $10,000
$100,000 - $10,000 = $90,000
, A company deposits $10,000 in a bank where it will earn simple interest
of 10% annually. What is the amount of interest earned in Year 2? - ✔✔-
ANSWER-✔✔-$1,000
RATIONALE
$10,000 x .10 = $1000
A company has net sales of $1,340,000, beginning accounts receivable
of $500,000, and ending accounts receivable of $650,000. How many
days does it take the company to collect its accounts receivable? - ✔✔-
ANSWER-✔✔-156.6
$1,340,000 / ($500,000 + $650,000)/2 =
$1,340,,000 = 2.33
RATIONALE
365/2.33= 156.6 days= 2.33
A company needs to have $70,000 in cash at the end of four years. The
company can invest the cash now in a money market account that will
return 6% interest compounded annually. Using a 6% interest rate, the
implied annual interest is $70,000 × 0.06 = $4,200. The following
information is given:
