2026 WGU D102 FINANCIAL ACCOUNTING FINAL EXAM
OA AND PA/D102 COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS|LATEST 2026 VERSION!!!
What is a single-step income statement?
Emphasizes separate computation of gross profit and operating
income
Groups and total revenues/groups and total expenses
Omits both interest expense and income tax expense
Includes all other expenses, but omits income tax expense
- Answer -Groups and total revenues/groups and total expenses
What is "gross profit"?
Sales − Cost of Goods Sold.
Accounts Receivable − Accounts Payable
Total Assets − Total Liabilities
Total Revenues − Total Expenses
- Answer -Sales − Cost of Goods Sold.
What is a company's gross profit percentage?
Net Income ÷ Owners' Equity
Gross Profit ÷ Sales
Net Income ÷ Sales
Gross Profit ÷ Net Income - Answer -Gross Profit ÷ Sales
Which item is a revenue item?
Accounts Receivable
Cash
Loan Payable
Sales - Answer -Sales
pg. 1
,What is an income statement?
Report of the assets, liabilities, and equity of a company as of a point
in time
Report of the operating, investing, and financing cash flows of a
company during a period
Report of the revenues and expenses of a company during a period
Report of the total of the balances of all of a company's bank accounts
- Answer -Report of the revenues and expenses of a company during a
period
Report of the total of the balances of all of a company's bank accounts
What is an example of an expense that fits under the heading "selling,
general, and administrative expense"?
Wages of company headquarters accounting staff
Fees earned by providing services
Purchase cost of inventory items bought from suppliers
Cost paid for the use of someone else's money
- Answer -Wages of company headquarters accounting staff
What is depreciation expense?
The amount of uncollectible accounts created by credit sales during
the year
The amount of inventory lost, stolen, or sold during the year
The amount of gross profit divided by sales for the year
The amount of wear and tear on long-lived assets during the year
- Answer -The amount of wear and tear on long-lived assets during
the year
Which item is an asset?
Accounts receivable
pg. 2
,Capital stock
Retained earnings
Accounts payable - Answer -Accounts receivable
According to the accounting equation, what is the correct computation
of owners' equity?
Total Assets + Liabilities
Total Assets - Liabilities
Cash + Bank Loan Balance
Cash - Bank Loan Balance - Answer -Total Assets - Liabilities
What is an accurate description of accounts payable?
Obligation arising from the purchase of inventory on account
Obligation arising from the sale of office supplies on account
Obligation arising from the payment of income taxes on account
Obligation arising from the sale of equipment on account
- Answer -Obligation arising from the purchase of inventory on
account
What is bad debt expense?
Amount of uncollectible accounts created by credit sales during the
year
Amount of inventory lost, stolen, or sold during the year
Amount of gross profit divided by sales for the year
Amount of wear and tear on long-lived assets during the year
- Answer -Amount of uncollectible accounts created by credit sales
during the year
Which item is an expense item?
Cost of Goods Sold
pg. 3
, Sales
Cash
Accounts Payable - Answer -Cost of Goods Sold
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
- Answer -Report of the assets, liabilities, and equity of a company as
of a point in time
Which item is a liability?
Accounts payable
Retained earnings
Accounts receivable
Capital stock - Answer -Accounts payable
Which item is an owners' equity item?
Accounts payable
Accounts receivable
Retained earnings
Inventory - Answer -Retained earnings
Strime Company's assets equal $104,000, and its stockholders' equity
totals $68,500.
What is the amount of its liabilities?
$35,500
pg. 4
OA AND PA/D102 COMPLETE QUESTIONS AND CORRECT
VERIFIED ANSWERS|LATEST 2026 VERSION!!!
What is a single-step income statement?
Emphasizes separate computation of gross profit and operating
income
Groups and total revenues/groups and total expenses
Omits both interest expense and income tax expense
Includes all other expenses, but omits income tax expense
- Answer -Groups and total revenues/groups and total expenses
What is "gross profit"?
Sales − Cost of Goods Sold.
Accounts Receivable − Accounts Payable
Total Assets − Total Liabilities
Total Revenues − Total Expenses
- Answer -Sales − Cost of Goods Sold.
What is a company's gross profit percentage?
Net Income ÷ Owners' Equity
Gross Profit ÷ Sales
Net Income ÷ Sales
Gross Profit ÷ Net Income - Answer -Gross Profit ÷ Sales
Which item is a revenue item?
Accounts Receivable
Cash
Loan Payable
Sales - Answer -Sales
pg. 1
,What is an income statement?
Report of the assets, liabilities, and equity of a company as of a point
in time
Report of the operating, investing, and financing cash flows of a
company during a period
Report of the revenues and expenses of a company during a period
Report of the total of the balances of all of a company's bank accounts
- Answer -Report of the revenues and expenses of a company during a
period
Report of the total of the balances of all of a company's bank accounts
What is an example of an expense that fits under the heading "selling,
general, and administrative expense"?
Wages of company headquarters accounting staff
Fees earned by providing services
Purchase cost of inventory items bought from suppliers
Cost paid for the use of someone else's money
- Answer -Wages of company headquarters accounting staff
What is depreciation expense?
The amount of uncollectible accounts created by credit sales during
the year
The amount of inventory lost, stolen, or sold during the year
The amount of gross profit divided by sales for the year
The amount of wear and tear on long-lived assets during the year
- Answer -The amount of wear and tear on long-lived assets during
the year
Which item is an asset?
Accounts receivable
pg. 2
,Capital stock
Retained earnings
Accounts payable - Answer -Accounts receivable
According to the accounting equation, what is the correct computation
of owners' equity?
Total Assets + Liabilities
Total Assets - Liabilities
Cash + Bank Loan Balance
Cash - Bank Loan Balance - Answer -Total Assets - Liabilities
What is an accurate description of accounts payable?
Obligation arising from the purchase of inventory on account
Obligation arising from the sale of office supplies on account
Obligation arising from the payment of income taxes on account
Obligation arising from the sale of equipment on account
- Answer -Obligation arising from the purchase of inventory on
account
What is bad debt expense?
Amount of uncollectible accounts created by credit sales during the
year
Amount of inventory lost, stolen, or sold during the year
Amount of gross profit divided by sales for the year
Amount of wear and tear on long-lived assets during the year
- Answer -Amount of uncollectible accounts created by credit sales
during the year
Which item is an expense item?
Cost of Goods Sold
pg. 3
, Sales
Cash
Accounts Payable - Answer -Cost of Goods Sold
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
- Answer -Report of the assets, liabilities, and equity of a company as
of a point in time
Which item is a liability?
Accounts payable
Retained earnings
Accounts receivable
Capital stock - Answer -Accounts payable
Which item is an owners' equity item?
Accounts payable
Accounts receivable
Retained earnings
Inventory - Answer -Retained earnings
Strime Company's assets equal $104,000, and its stockholders' equity
totals $68,500.
What is the amount of its liabilities?
$35,500
pg. 4
