WGU D102 Pre-Assessment Exam with Complete
Solutions
What information is contained in a balance sheet? - ✓✓✓Report of a company's
financial position as of a point in time.
What is an owners' equity item? - ✓✓✓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? - ✓✓✓$90,000
What is reported in a multiple-step income statement that is not reported in a single-
step income statement? - ✓✓✓Gross profit
How is gross profit computed? - ✓✓✓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? - ✓✓✓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? - ✓✓✓Financing
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, 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? - ✓✓✓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? -
✓✓✓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? - ✓✓✓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? - ✓✓✓Asset, debit; equity, credit
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Solutions
What information is contained in a balance sheet? - ✓✓✓Report of a company's
financial position as of a point in time.
What is an owners' equity item? - ✓✓✓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? - ✓✓✓$90,000
What is reported in a multiple-step income statement that is not reported in a single-
step income statement? - ✓✓✓Gross profit
How is gross profit computed? - ✓✓✓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? - ✓✓✓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? - ✓✓✓Financing
P a g e 1 | 12
, 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? - ✓✓✓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? -
✓✓✓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? - ✓✓✓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? - ✓✓✓Asset, debit; equity, credit
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