WGU D104 INTERMEDIATE ACCOUNTING II UNITS 4-6 EXAM
2025 WITH 100% ACCURATE SOLUTIONS
Asset Turnover Ratio - CORRECT -net sales/average
total assets
Profit Margin Ratio - CORRECT -net income/total
sales
Rate of return on assets - CORRECT -net
income/average total assets
Current ratio - CORRECT -current assets/current
liabilities
acid-test ratio - CORRECT -(cash + short-term
investments + net receivables) / current liabilities
rate of return on common stock equity - CORRECT -
(net income - preferred dividends) / average common
stockholders' equity
,payout ratio - CORRECT -cash dividends / (net
income - preferred dividends)
book value per share - CORRECT -common
stockholders' equity / outstanding shares
sum-of-the-years'-digits method - CORRECT -
Accelerated depreciation with higher depreciation cost in
beginning and lower charges in the end. Numerator is the # of
years of est. life remaining at the 1st of the year, denominator is
sum of the years individually. (e.g. 5/15, 4/15, 3/15, 2/15, 1/15)
Variable charge depreciation method (activity method or units-
of-activity/ production approach) - CORRECT -
((cost - salvage value) X current units) / total estimated units
activity method - CORRECT -(actual activity in
period / total estimate activity) X (cost - salvage value)
double declining balance method - CORRECT -An
accelerated depreciation method that computes annual
, depreciation by multiplying the depreciable asset's decreasing
book value by a constant percent that is two times the straight-
line depreciation rate.
Multiple assets group depreciation method -
CORRECT -Assets similar in nature and have
approx. same useful lives. Total of the annual depreciation
expense for all assets in the group / total cost of the assets.
Multiple assets composite depreciation method -
CORRECT -Assets are dissimilar and have different
lives. Total annual depreciation expense of all assets / total cost
of all assets.
Composite life - CORRECT -(Original cost - salvage
value) / total annual depreciation
Composite depreciation rate - CORRECT -Total
annual depreciation of all assets / total cost of all assets.
Journal entry for gain on sale of composite depreciation
equipment - CORRECT -Debit cash & accumulated
depreciation (subtract gain), credit equipment.
2025 WITH 100% ACCURATE SOLUTIONS
Asset Turnover Ratio - CORRECT -net sales/average
total assets
Profit Margin Ratio - CORRECT -net income/total
sales
Rate of return on assets - CORRECT -net
income/average total assets
Current ratio - CORRECT -current assets/current
liabilities
acid-test ratio - CORRECT -(cash + short-term
investments + net receivables) / current liabilities
rate of return on common stock equity - CORRECT -
(net income - preferred dividends) / average common
stockholders' equity
,payout ratio - CORRECT -cash dividends / (net
income - preferred dividends)
book value per share - CORRECT -common
stockholders' equity / outstanding shares
sum-of-the-years'-digits method - CORRECT -
Accelerated depreciation with higher depreciation cost in
beginning and lower charges in the end. Numerator is the # of
years of est. life remaining at the 1st of the year, denominator is
sum of the years individually. (e.g. 5/15, 4/15, 3/15, 2/15, 1/15)
Variable charge depreciation method (activity method or units-
of-activity/ production approach) - CORRECT -
((cost - salvage value) X current units) / total estimated units
activity method - CORRECT -(actual activity in
period / total estimate activity) X (cost - salvage value)
double declining balance method - CORRECT -An
accelerated depreciation method that computes annual
, depreciation by multiplying the depreciable asset's decreasing
book value by a constant percent that is two times the straight-
line depreciation rate.
Multiple assets group depreciation method -
CORRECT -Assets similar in nature and have
approx. same useful lives. Total of the annual depreciation
expense for all assets in the group / total cost of the assets.
Multiple assets composite depreciation method -
CORRECT -Assets are dissimilar and have different
lives. Total annual depreciation expense of all assets / total cost
of all assets.
Composite life - CORRECT -(Original cost - salvage
value) / total annual depreciation
Composite depreciation rate - CORRECT -Total
annual depreciation of all assets / total cost of all assets.
Journal entry for gain on sale of composite depreciation
equipment - CORRECT -Debit cash & accumulated
depreciation (subtract gain), credit equipment.
