WGU D102 Financial Accounting Final OA
Actual Exam 2026/2027 Test Bank 1 Newest With
Complete 300 Questions And Correct Detailed
Answers| Brand New Version!
Why are daily cash deposits important?
A. They keep the ledger accounts separate from the journal accounts.
B. They maintain the balance between the accounts payable and the accounts receivable.
C. They prevent the accumulation of a large amount of cash.
D. They maintain the balance between the nominal and the real accounts. C. They prevent the
accumulation of a large amount of cash.
For a public company, who must compose the audit committee?
A. Company controller
B. Chief executive officer
C. Chief financial officer
D. Outside directors D. Outside directors
An important internal control is making sure the requirement that all employees working for a
company take their mandatory vacation time they are allowed to take each year. This policy
allows an employee to cover the job responsibilities for other employees throughout the year and
cross-train other employees on a variety of job functions within the company.
Which type of control activity is this type of requirement?
A. Independent check
B. Adequate documents and records
C. Segregation of duties
D. Physical control over assets and records A. Independent check
What is a company's control environment?
A. The system of assigning account numbers to ensure the internal consistency of the chart of
accounts
B. The system of posting between the general journal and the general ledger
C. The actions, policies, and procedures that reflect the overall attitudes of top management
1
,D. The closing process wherein the nominal accounts are closed C. The actions, policies, and
procedures that reflect the overall attitudes of top management
What represents an obvious error a controller should be concerned about in the general ledger?
A. The posting of closing entries
B. Including accurately the posting of a series of transactions
C. Omitting completely the posting of a series of transactions
D. The posting of adjusting entries C. Omitting completely the posting of a series of
transactions
An accountant for a company mistakenly posted an expense amount as an asset in the general
ledger. What is the financial statement impact of this error?
A. Revenues are too low, so reported net income is too low.
B. Revenues are too high, so reported net income is too high.
C. Expenses are too low, so reported net income is too high.
D. Expenses are too high, so reported net income is too low. C. Expenses are too low, so
reported net income is too high.
What is a bank reconciliation?
A. Identifying the reasons for the difference between the bank balance and the company's cash
account balance
B. Checking the cash deposit total by having the amount computed by two independent people
C. Contacting customers' banks to confirm sufficient funds to justify selling to the customer on
credit
D. Confirming the account and routing numbers on all company bank accounts A. Identifying
the reasons for the difference between the bank balance and the company's cash account balance
Why is cash a tempting target for theft?
A. Because it is the easiest asset to spend if stolen
B. Because it is reported in the balance sheet rather than in the income statement
C. Because it has a debit balance in the general ledger
D. Because it is closed to Retained Earnings at the end of the year A. Because it is the easiest
asset to spend if stolen
What is one cash management tool?
A. Minimum amount in retained earnings, maximum amount in capital stock
2
,B. Minimum amount of cash in no-interest accounts, maximum amount of cash in higher-
yielding investments
C. Minimum amount in adjusting entries, maximum amount in closing entries
D. Minimum amount in closing entries, maximum amount in adjusting entries B. Minimum
amount of cash in no-interest accounts, maximum amount of cash in higher-yielding investments
Why are daily cash deposits important?
A. They maintain the balance between inventory and cost of goods sold.
B. They maintain the balance between the ledger accounts and the real accounts.
C. They focus cash responsibility on the one individual assigned to make the deposits.
D. They keep the ledger accounts separate from the journal accounts. C. They focus cash
responsibility on the one individual assigned to make the deposits.
What is an outside director?
A. The chief executive officer (CEO) and the chief financial officer (CFO)
B. The members of a company's board of directors who are not officers of the company
C. The marketing director and the purchasing agent/director
D. The director of company logistics (shipments from suppliers and to customers) B. The
members of a company's board of directors who are not officers of the company
What are the characteristics of a well-designed document?
A. Complicated, designed with all uses in mind, and prenumbered; format is not important
B. Easily understood, designed with all uses in mind, prenumbered, and well formatted
C. Easily understood, designed with certain uses in mind, not prenumbered, and well formatted
D. Complicated, designed with certain uses in mind, and not prenumbered; format is not
important B. Easily understood, designed with all uses in mind, prenumbered, and well
formatted
What are the three preventive controls?
A. Independent checks, fraud detection, and post-closing confirmation
B. Physical control, independent checks, and adequate documents
C. Segregation of duties, proper authorizations, and physical control
D. Adequate documents, error detection, and post-adjusting confirmation C. Segregation of
duties, proper authorizations, and physical control
What is one way that an error can be made in recording a transaction in a journal entry?
A. Revenues, expenses, and dividends are posted in the general ledger.
3
, B. Both liabilities and equities are reported in the balance sheet.
C. The amount entered in the journal entry is incorrect.
D. Assets and liabilities are posted in the general ledger. C. The amount entered in the journal
entry is incorrect.
The accountant for a company mistakenly posted a liability amount as a revenue in the general
ledger. What is the financial statement impact?
A. Revenues are too low, so reported net income is too low.
B. Expenses are too high, so reported net income is too low.
C. Expenses are too low, so reported net income is too high.
D. Revenues are too high, so reported net income is too high. D. Revenues are too high, so
reported net income is too high.
A company received a bank statement at the end of the month. The statement contained these
items:
- Ending balance: $10,000
- Bank service charge for the month: $120
- Interest earned and added by the bank to the account balance: $200
In comparing the bank statement to its own cash records, the controller of the company found
these items:
- Deposits made but not yet recorded by the bank: $5,100
- Checks written and mailed but not yet recorded by the bank: $3,600
Before making any adjustment suggested by the bank statement, the cash balance according to
the company's books is $11,420.
What is the correct cash balance as of the end of the month? (Verify this amount by reconciling
the bank statement with the cash balance on the books.)
A. $11,500
B. $12,920
C. $10,700
D. $10,080 A. $11,500
If the payment terms are 3/15, n/60, what is meant by the "3/15"?
A. 3% discount if payment is made within 75 days
4
Actual Exam 2026/2027 Test Bank 1 Newest With
Complete 300 Questions And Correct Detailed
Answers| Brand New Version!
Why are daily cash deposits important?
A. They keep the ledger accounts separate from the journal accounts.
B. They maintain the balance between the accounts payable and the accounts receivable.
C. They prevent the accumulation of a large amount of cash.
D. They maintain the balance between the nominal and the real accounts. C. They prevent the
accumulation of a large amount of cash.
For a public company, who must compose the audit committee?
A. Company controller
B. Chief executive officer
C. Chief financial officer
D. Outside directors D. Outside directors
An important internal control is making sure the requirement that all employees working for a
company take their mandatory vacation time they are allowed to take each year. This policy
allows an employee to cover the job responsibilities for other employees throughout the year and
cross-train other employees on a variety of job functions within the company.
Which type of control activity is this type of requirement?
A. Independent check
B. Adequate documents and records
C. Segregation of duties
D. Physical control over assets and records A. Independent check
What is a company's control environment?
A. The system of assigning account numbers to ensure the internal consistency of the chart of
accounts
B. The system of posting between the general journal and the general ledger
C. The actions, policies, and procedures that reflect the overall attitudes of top management
1
,D. The closing process wherein the nominal accounts are closed C. The actions, policies, and
procedures that reflect the overall attitudes of top management
What represents an obvious error a controller should be concerned about in the general ledger?
A. The posting of closing entries
B. Including accurately the posting of a series of transactions
C. Omitting completely the posting of a series of transactions
D. The posting of adjusting entries C. Omitting completely the posting of a series of
transactions
An accountant for a company mistakenly posted an expense amount as an asset in the general
ledger. What is the financial statement impact of this error?
A. Revenues are too low, so reported net income is too low.
B. Revenues are too high, so reported net income is too high.
C. Expenses are too low, so reported net income is too high.
D. Expenses are too high, so reported net income is too low. C. Expenses are too low, so
reported net income is too high.
What is a bank reconciliation?
A. Identifying the reasons for the difference between the bank balance and the company's cash
account balance
B. Checking the cash deposit total by having the amount computed by two independent people
C. Contacting customers' banks to confirm sufficient funds to justify selling to the customer on
credit
D. Confirming the account and routing numbers on all company bank accounts A. Identifying
the reasons for the difference between the bank balance and the company's cash account balance
Why is cash a tempting target for theft?
A. Because it is the easiest asset to spend if stolen
B. Because it is reported in the balance sheet rather than in the income statement
C. Because it has a debit balance in the general ledger
D. Because it is closed to Retained Earnings at the end of the year A. Because it is the easiest
asset to spend if stolen
What is one cash management tool?
A. Minimum amount in retained earnings, maximum amount in capital stock
2
,B. Minimum amount of cash in no-interest accounts, maximum amount of cash in higher-
yielding investments
C. Minimum amount in adjusting entries, maximum amount in closing entries
D. Minimum amount in closing entries, maximum amount in adjusting entries B. Minimum
amount of cash in no-interest accounts, maximum amount of cash in higher-yielding investments
Why are daily cash deposits important?
A. They maintain the balance between inventory and cost of goods sold.
B. They maintain the balance between the ledger accounts and the real accounts.
C. They focus cash responsibility on the one individual assigned to make the deposits.
D. They keep the ledger accounts separate from the journal accounts. C. They focus cash
responsibility on the one individual assigned to make the deposits.
What is an outside director?
A. The chief executive officer (CEO) and the chief financial officer (CFO)
B. The members of a company's board of directors who are not officers of the company
C. The marketing director and the purchasing agent/director
D. The director of company logistics (shipments from suppliers and to customers) B. The
members of a company's board of directors who are not officers of the company
What are the characteristics of a well-designed document?
A. Complicated, designed with all uses in mind, and prenumbered; format is not important
B. Easily understood, designed with all uses in mind, prenumbered, and well formatted
C. Easily understood, designed with certain uses in mind, not prenumbered, and well formatted
D. Complicated, designed with certain uses in mind, and not prenumbered; format is not
important B. Easily understood, designed with all uses in mind, prenumbered, and well
formatted
What are the three preventive controls?
A. Independent checks, fraud detection, and post-closing confirmation
B. Physical control, independent checks, and adequate documents
C. Segregation of duties, proper authorizations, and physical control
D. Adequate documents, error detection, and post-adjusting confirmation C. Segregation of
duties, proper authorizations, and physical control
What is one way that an error can be made in recording a transaction in a journal entry?
A. Revenues, expenses, and dividends are posted in the general ledger.
3
, B. Both liabilities and equities are reported in the balance sheet.
C. The amount entered in the journal entry is incorrect.
D. Assets and liabilities are posted in the general ledger. C. The amount entered in the journal
entry is incorrect.
The accountant for a company mistakenly posted a liability amount as a revenue in the general
ledger. What is the financial statement impact?
A. Revenues are too low, so reported net income is too low.
B. Expenses are too high, so reported net income is too low.
C. Expenses are too low, so reported net income is too high.
D. Revenues are too high, so reported net income is too high. D. Revenues are too high, so
reported net income is too high.
A company received a bank statement at the end of the month. The statement contained these
items:
- Ending balance: $10,000
- Bank service charge for the month: $120
- Interest earned and added by the bank to the account balance: $200
In comparing the bank statement to its own cash records, the controller of the company found
these items:
- Deposits made but not yet recorded by the bank: $5,100
- Checks written and mailed but not yet recorded by the bank: $3,600
Before making any adjustment suggested by the bank statement, the cash balance according to
the company's books is $11,420.
What is the correct cash balance as of the end of the month? (Verify this amount by reconciling
the bank statement with the cash balance on the books.)
A. $11,500
B. $12,920
C. $10,700
D. $10,080 A. $11,500
If the payment terms are 3/15, n/60, what is meant by the "3/15"?
A. 3% discount if payment is made within 75 days
4
