WGU D102 Financial Accounting Final OA
Actual Exam 2026/2027 Test Bank 280
Questions with Correct Detailed Answers
(Brand New Version!)
1. 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.
Answer: C
2. For a public company, who must compose the audit committee?
A. Company controller
B. Chief executive officer
C. Chief financial officer
D. Outside directors
Answer: D
3. 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
,Answer: A
4. 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
D. The closing process wherein the nominal accounts are closed
Answer: C
5. 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
Answer: C
6. 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.
Answer: C
7. 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
Answer: A
8. 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
Answer: A
9. What is one cash management tool?
A. Minimum amount in retained earnings, maximum amount in capital stock
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
Answer: B
10. 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.
Answer: C
11. 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)
Answer: B
12. 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
Answer: B
13. 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
Answer: C
14. 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.
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.
Answer: C
Actual Exam 2026/2027 Test Bank 280
Questions with Correct Detailed Answers
(Brand New Version!)
1. 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.
Answer: C
2. For a public company, who must compose the audit committee?
A. Company controller
B. Chief executive officer
C. Chief financial officer
D. Outside directors
Answer: D
3. 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
,Answer: A
4. 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
D. The closing process wherein the nominal accounts are closed
Answer: C
5. 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
Answer: C
6. 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.
Answer: C
7. 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
Answer: A
8. 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
Answer: A
9. What is one cash management tool?
A. Minimum amount in retained earnings, maximum amount in capital stock
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
Answer: B
10. 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.
Answer: C
11. 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)
Answer: B
12. 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
Answer: B
13. 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
Answer: C
14. 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.
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.
Answer: C
