WGU D774 Intro to Business Accounting Western
Governors University 2026 Practice Questions
with Verified Detailed Answers
Introduction:
This document contains a comprehensive set of practice questions
and verified answers for WGU D774 Intro to Business Accounting. It
covers key topics such as financial statements, budgeting, cost
accounting, cash flow classification, and managerial accounting
concepts.
The material is structured in a question-and-answer format, making
it useful for exam preparation and concept reinforcement. It aligns
closely with course assessments and includes detailed explanations
for better understanding.
Exam Questions and Answers
32. Which section of the statement of cash flows is the income
statement directly connected to?--- correct precise answer ---
Operating
33. Which type of cash collection is an operating activity?---
correct precise answer --- Collecting cash from customers
34. Which item is a source of cash from a financing activity?---
correct precise answer --- Borrowing money
35. Whole Pine Inc. manufactures custom-made wood furniture.
The company has a full-time chief financial officer (CFO) who
oversees the company's financ-ing activities. Which item is a
, financing activity for Whole Pine Inc.?--- correct precise answer ---
Obtained a new bank loan
36. How are dividends included in the computations that impact
the articula-tion of the balance sheet, the income statement, and
the statement of cash flows?--- correct precise answer ---
Dividends impact ending retained earnings.
37. How does the change in the cash balance for the year impact
the compu-tation of the ending retained earnings balance?---
correct precise answer --- It is ignored.
38. Which primary financial statement provides a detailed report
explaining one component in the year-to-year change in the
retained earnings balance?-
--- correct precise answer --- Income statement
39. Which balance sheet account is directly impacted by net
income?--- correct precise answer --- Retained Earnings
40. How do the budgets of manufacturing companies, such as
airplane parts manufacturers, differ from those of retail companies,
such as clothing stores?-
--- correct precise answer --- Manufacturing company budgets
include production and product cost budgets.
41. What is a common use of a cash budget?--- correct precise
answer --- To identify the need for external financing
42. Endothon Company, a recreational vehicle dealer, has
prepared a set of company budgets for next year based on a sales
forecast that assumes that the competitive environment next year
will be the same as it was this year.
Governors University 2026 Practice Questions
with Verified Detailed Answers
Introduction:
This document contains a comprehensive set of practice questions
and verified answers for WGU D774 Intro to Business Accounting. It
covers key topics such as financial statements, budgeting, cost
accounting, cash flow classification, and managerial accounting
concepts.
The material is structured in a question-and-answer format, making
it useful for exam preparation and concept reinforcement. It aligns
closely with course assessments and includes detailed explanations
for better understanding.
Exam Questions and Answers
32. Which section of the statement of cash flows is the income
statement directly connected to?--- correct precise answer ---
Operating
33. Which type of cash collection is an operating activity?---
correct precise answer --- Collecting cash from customers
34. Which item is a source of cash from a financing activity?---
correct precise answer --- Borrowing money
35. Whole Pine Inc. manufactures custom-made wood furniture.
The company has a full-time chief financial officer (CFO) who
oversees the company's financ-ing activities. Which item is a
, financing activity for Whole Pine Inc.?--- correct precise answer ---
Obtained a new bank loan
36. How are dividends included in the computations that impact
the articula-tion of the balance sheet, the income statement, and
the statement of cash flows?--- correct precise answer ---
Dividends impact ending retained earnings.
37. How does the change in the cash balance for the year impact
the compu-tation of the ending retained earnings balance?---
correct precise answer --- It is ignored.
38. Which primary financial statement provides a detailed report
explaining one component in the year-to-year change in the
retained earnings balance?-
--- correct precise answer --- Income statement
39. Which balance sheet account is directly impacted by net
income?--- correct precise answer --- Retained Earnings
40. How do the budgets of manufacturing companies, such as
airplane parts manufacturers, differ from those of retail companies,
such as clothing stores?-
--- correct precise answer --- Manufacturing company budgets
include production and product cost budgets.
41. What is a common use of a cash budget?--- correct precise
answer --- To identify the need for external financing
42. Endothon Company, a recreational vehicle dealer, has
prepared a set of company budgets for next year based on a sales
forecast that assumes that the competitive environment next year
will be the same as it was this year.
