WGU D102 FINANCIAL ACCOUNTING EXAM 333
QUESTIONS WITH VERIFIED ANSWERS 2025/2026
Report of the assets, liabilities, and equity of a company as of a point in time -
CORRECT ANSWER What is a balance sheet?
Report of the total of the balances of all of a company's bank accounts
Report of the assets, liabilities, and equity of a company as of a point in time
Report of the revenues and expenses of a company during a period
Report of the operating, investing, and financing cash flows of a company during a
period
Accounts payable - CORRECT ANSWER Which item is a liability?
Accounts payable
Retained earnings
Accounts receivable
Capital stock
Retained earnings - CORRECT ANSWER Which item is an owners' equity item?
Accounts payable
Accounts receivable
Retained earnings
,Inventory
$35,500 - CORRECT ANSWER Strome Company's assets equal $104,000, and its
stockholders' equity totals $68,500.
What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000
$192,500 - CORRECT ANSWER The Whole Pine Company's liabilities equal
$124,000, and its stockholders' equity totals $68,500. What is the amount of its
assets?
$55,500
$124,000
$68,500
$192,500
Assets = Liabilities + Owners' Equity - CORRECT ANSWER Which is the proper
description of the accounting equation?
,Owners' Equity = Assets
Assets = Liabilities + Owners' Equity
Assets = Liabilities
Owners' Equity = Liabilities
Equal itself, or balance - CORRECT ANSWER After the effects of every transaction
are considered and recorded, what must the accounting equation do?
Equal itself, or balance
Equal total owners' equity
Equal total liabilities
Equal total assets
Goods purchased and held for sale - CORRECT ANSWER Which statement best
describes the main features of inventories?
Goods due from customers who have purchased on account
Goods purchased and held for sale
Goods used by a company on a long-term basis, usually more than five years
Goods used by company employees on a daily basis
A balance sheet that distinguishes between current and long-term assets -
CORRECT ANSWER What is a classified balance sheet?
, A balance sheet that is not publicly disclosed
A balance sheet that distinguishes between current and long-term assets
A balance sheet that is for a period of time rather than as of a point in time
A balance sheet that separates liabilities from equities
The difference between total assets and total liabilities - CORRECT ANSWER What
does owners' equity represent?
The difference between total assets and total liabilities
The difference between current assets and long-term assets
The difference between total liabilities and total owners' equity
The difference between current liabilities and long-term liabilities
The next year - CORRECT ANSWER For most companies, when assets or liabilities
are classified as "current" on the balance sheet, it generally means the related
assets or liabilities will be turned into cash or will be required to be paid,
respectively, within what time frame?
The next quarter
The next six months
The next month
The next year
A residual amount representing the net assets available after all obligations have
been satisfied - CORRECT ANSWER What is owners' equity?
QUESTIONS WITH VERIFIED ANSWERS 2025/2026
Report of the assets, liabilities, and equity of a company as of a point in time -
CORRECT ANSWER What is a balance sheet?
Report of the total of the balances of all of a company's bank accounts
Report of the assets, liabilities, and equity of a company as of a point in time
Report of the revenues and expenses of a company during a period
Report of the operating, investing, and financing cash flows of a company during a
period
Accounts payable - CORRECT ANSWER Which item is a liability?
Accounts payable
Retained earnings
Accounts receivable
Capital stock
Retained earnings - CORRECT ANSWER Which item is an owners' equity item?
Accounts payable
Accounts receivable
Retained earnings
,Inventory
$35,500 - CORRECT ANSWER Strome Company's assets equal $104,000, and its
stockholders' equity totals $68,500.
What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000
$192,500 - CORRECT ANSWER The Whole Pine Company's liabilities equal
$124,000, and its stockholders' equity totals $68,500. What is the amount of its
assets?
$55,500
$124,000
$68,500
$192,500
Assets = Liabilities + Owners' Equity - CORRECT ANSWER Which is the proper
description of the accounting equation?
,Owners' Equity = Assets
Assets = Liabilities + Owners' Equity
Assets = Liabilities
Owners' Equity = Liabilities
Equal itself, or balance - CORRECT ANSWER After the effects of every transaction
are considered and recorded, what must the accounting equation do?
Equal itself, or balance
Equal total owners' equity
Equal total liabilities
Equal total assets
Goods purchased and held for sale - CORRECT ANSWER Which statement best
describes the main features of inventories?
Goods due from customers who have purchased on account
Goods purchased and held for sale
Goods used by a company on a long-term basis, usually more than five years
Goods used by company employees on a daily basis
A balance sheet that distinguishes between current and long-term assets -
CORRECT ANSWER What is a classified balance sheet?
, A balance sheet that is not publicly disclosed
A balance sheet that distinguishes between current and long-term assets
A balance sheet that is for a period of time rather than as of a point in time
A balance sheet that separates liabilities from equities
The difference between total assets and total liabilities - CORRECT ANSWER What
does owners' equity represent?
The difference between total assets and total liabilities
The difference between current assets and long-term assets
The difference between total liabilities and total owners' equity
The difference between current liabilities and long-term liabilities
The next year - CORRECT ANSWER For most companies, when assets or liabilities
are classified as "current" on the balance sheet, it generally means the related
assets or liabilities will be turned into cash or will be required to be paid,
respectively, within what time frame?
The next quarter
The next six months
The next month
The next year
A residual amount representing the net assets available after all obligations have
been satisfied - CORRECT ANSWER What is owners' equity?
