WGU D102 Financial Accounting A C T U A L
EXAM2026 -2027 \UPDATED QUESTIONS
AND CORRECT ANSWERS\VERIFIE 100%
Cash Collection
The recovery of cash from a business or individual with which you
have previously entered into a transaction.
Cash Dividends
A cash distribution of earnings to stockholders
Cash Equivalents
Short-term, highly liquid investments such as Treasury bills,
commercial paper, and money market funds
Chart of Accounts
A systematic listing of all accounts used by a company
,Closing Entries
Entries that reduce all nominal (temporary) accounts to a zero
balance at the end of each accounting period, transferring their
preclosing balances to a permanent balance sheet account
Common Stock
The most frequently issued class of stock; typically provides a
voting right but is secondary to preferred stock in dividend and
liquidation rights
Compound Interest
Interest earned on your interest
Compound Journal Entry
A journal entry that involves more than one debit or more than one
credit or both
Consignment
An arrangement whereby merchandise owned by one party, the
consignor, is sold by another party, the consignee, usually on a
commission basis
,Consolidated Financial Statements
Statement that combines the financial results of a "parent
company" with other companies that it owns, called subsidiaries
Contingency
Circumstance involving potential losses or gains that will not be
resolved until some future event occurs
Contra Account
An account that is offset or deducted from another account
Contributed Capital
The portion of owners' equity contributed by investors (the owners)
in exchange for shares of stock
Control Activities
Policies and procedures used by management to meet their
objectives
Control Environment
The actions, policies, and procedures that reflect the overall attitudes
of top management about control and its importance to the entity
, Control Procedures
Policies and procedures used by management to meet their
objectives
Convertible Preferred Stock
Preferred stock that can be converted by the shareholder to
common stock at a specified conversion rate
Corporate Charter
A written document filed by the founders of a corporation with the
state in which the corporation is registered. It details the major
components of a
company, such as its objectives, structure, and planned operations
Cost of Goods Sold
The costs incurred to purchase or manufacture the merchandise
sold during a period
Credit (Abbreviated Cr)
An entry on the right side of a T-account
Current Assets
Cash, accounts receivable, and inventory
EXAM2026 -2027 \UPDATED QUESTIONS
AND CORRECT ANSWERS\VERIFIE 100%
Cash Collection
The recovery of cash from a business or individual with which you
have previously entered into a transaction.
Cash Dividends
A cash distribution of earnings to stockholders
Cash Equivalents
Short-term, highly liquid investments such as Treasury bills,
commercial paper, and money market funds
Chart of Accounts
A systematic listing of all accounts used by a company
,Closing Entries
Entries that reduce all nominal (temporary) accounts to a zero
balance at the end of each accounting period, transferring their
preclosing balances to a permanent balance sheet account
Common Stock
The most frequently issued class of stock; typically provides a
voting right but is secondary to preferred stock in dividend and
liquidation rights
Compound Interest
Interest earned on your interest
Compound Journal Entry
A journal entry that involves more than one debit or more than one
credit or both
Consignment
An arrangement whereby merchandise owned by one party, the
consignor, is sold by another party, the consignee, usually on a
commission basis
,Consolidated Financial Statements
Statement that combines the financial results of a "parent
company" with other companies that it owns, called subsidiaries
Contingency
Circumstance involving potential losses or gains that will not be
resolved until some future event occurs
Contra Account
An account that is offset or deducted from another account
Contributed Capital
The portion of owners' equity contributed by investors (the owners)
in exchange for shares of stock
Control Activities
Policies and procedures used by management to meet their
objectives
Control Environment
The actions, policies, and procedures that reflect the overall attitudes
of top management about control and its importance to the entity
, Control Procedures
Policies and procedures used by management to meet their
objectives
Convertible Preferred Stock
Preferred stock that can be converted by the shareholder to
common stock at a specified conversion rate
Corporate Charter
A written document filed by the founders of a corporation with the
state in which the corporation is registered. It details the major
components of a
company, such as its objectives, structure, and planned operations
Cost of Goods Sold
The costs incurred to purchase or manufacture the merchandise
sold during a period
Credit (Abbreviated Cr)
An entry on the right side of a T-account
Current Assets
Cash, accounts receivable, and inventory
