WGU D102 OA AND PA FINANCIAL ACCOUNTING FINAL
EXAM (LATEST 2026 UPDATE)/D102 COMPLETE
QUESTIONS AND CORRECT VERIFIED
ANSWERS|ALREADY GRADED A+
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
- Answer -The difference between total assets and total liabilities
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 - Answer -The next year
What is owners' equity?
An economic resource that is owned or controlled by a company
An obligation to pay cash, transfer other assets, or provide services to
someone else
A residual amount representing the net assets available after all
obligations have been satisfied
The sum of operating, investing, and financing cash flows
- Answer -A residual amount representing the net assets available
after all obligations have been satisfied
pg. 1
,Which item is an asset?
Accounts receivable
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
pg. 2
,Which item is an expense item?
Cost of Goods Sold
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.
pg. 3
, What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000 - Answer - $35,500
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 - Answer - $192,500
Which is the proper description of the accounting equation?
Owners' Equity = Assets
Assets = Liabilities + Owners' Equity
Assets = Liabilities
Owners' Equity = Liabilities
- Answer -Assets = Liabilities + Owners' Equity
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 - Answer -Equal itself, or balance
Which statement best describes the main features of inventories?
Goods due from customers who have purchased on account
pg. 4
EXAM (LATEST 2026 UPDATE)/D102 COMPLETE
QUESTIONS AND CORRECT VERIFIED
ANSWERS|ALREADY GRADED A+
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
- Answer -The difference between total assets and total liabilities
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 - Answer -The next year
What is owners' equity?
An economic resource that is owned or controlled by a company
An obligation to pay cash, transfer other assets, or provide services to
someone else
A residual amount representing the net assets available after all
obligations have been satisfied
The sum of operating, investing, and financing cash flows
- Answer -A residual amount representing the net assets available
after all obligations have been satisfied
pg. 1
,Which item is an asset?
Accounts receivable
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
pg. 2
,Which item is an expense item?
Cost of Goods Sold
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.
pg. 3
, What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000 - Answer - $35,500
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 - Answer - $192,500
Which is the proper description of the accounting equation?
Owners' Equity = Assets
Assets = Liabilities + Owners' Equity
Assets = Liabilities
Owners' Equity = Liabilities
- Answer -Assets = Liabilities + Owners' Equity
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 - Answer -Equal itself, or balance
Which statement best describes the main features of inventories?
Goods due from customers who have purchased on account
pg. 4
