WGU D102 Financial Accounting Study Guide | Actual
verified study complete Solutions | A+ Graded |
2026 Updates | 100% correct
✅ Unit 2: Primary Financial Statements
🔹 Balance Sheet
• Formula: Assets = Liabilities + Owner’s Equity (ALE)
• Current Assets: Cash, A/R, Inventory, Prepaid Expenses
• Non-Current Assets: PPE, Intangibles (trademarks, patents)
• Liabilities: A/P, Loans, Unearned Revenue, Taxes Payable
• Owner’s Equity: Common Stock, Retained Earnings, Treasury Stock
• Classified Balance Sheet: separates current and long-term items
🔹 Income Statement
• Formula: Revenues – Expenses = Net Income
• Revenues: Sales, Services, Interest
• Expenses: COGS, SG&A, Depreciation, Interest, Taxes
• Dividends are not an expense
• EPS: Net Income ÷ Shares Outstanding
• Multi-Step IS: Shows Gross Profit & Operating Income
🔹 Statement of Cash Flows
• Operating Activities: Everyday business (cash from customers, wages)
• Investing Activities: Buy/sell PPE or investments
• Financing Activities: Loans, dividends, stock issuance
• Cash Equivalents: Treasury bills, money market funds
, ✅ Unit 3–4: Accounting Cycle & Journal Entries
🔹 The Accounting Cycle
1. Analyze transactions
2. Record with journal entries
3. Post to ledger
4. Prepare trial balance 5. Adjust entries
6. Financial statements
7. Close temporary accounts
🔹 Debits & Credits (DEA LOR)
• Debit increases: Dividends, Expenses, Assets
• Credit increases: Liabilities, Owner’s Equity, Revenues
🔹 Adjusting Entries
1. Unrecorded Receivables → DR A/R, CR Revenue
2. Unrecorded Liabilities → DR Expense, CR Payable
3. Prepaid Expenses → DR Expense, CR Asset
4. Unearned Revenues → DR Liability, CR Revenue
🔹 Closing Entries (RED accounts)
• DR Revenues → CR Retained Earnings
• DR Retained Earnings → CR Expenses DR Retained
Earnings → CR Dividends
✅ Unit 5: Internal Controls
• 5 Components: Control environment, risk assessment, control activities,
communication, monitoring
• Control Examples:
o Segregation of duties o
Authorization procedures o
Physical safeguards
• Bank Reconciliation: Adjust for deposits in transit, outstanding checks
verified study complete Solutions | A+ Graded |
2026 Updates | 100% correct
✅ Unit 2: Primary Financial Statements
🔹 Balance Sheet
• Formula: Assets = Liabilities + Owner’s Equity (ALE)
• Current Assets: Cash, A/R, Inventory, Prepaid Expenses
• Non-Current Assets: PPE, Intangibles (trademarks, patents)
• Liabilities: A/P, Loans, Unearned Revenue, Taxes Payable
• Owner’s Equity: Common Stock, Retained Earnings, Treasury Stock
• Classified Balance Sheet: separates current and long-term items
🔹 Income Statement
• Formula: Revenues – Expenses = Net Income
• Revenues: Sales, Services, Interest
• Expenses: COGS, SG&A, Depreciation, Interest, Taxes
• Dividends are not an expense
• EPS: Net Income ÷ Shares Outstanding
• Multi-Step IS: Shows Gross Profit & Operating Income
🔹 Statement of Cash Flows
• Operating Activities: Everyday business (cash from customers, wages)
• Investing Activities: Buy/sell PPE or investments
• Financing Activities: Loans, dividends, stock issuance
• Cash Equivalents: Treasury bills, money market funds
, ✅ Unit 3–4: Accounting Cycle & Journal Entries
🔹 The Accounting Cycle
1. Analyze transactions
2. Record with journal entries
3. Post to ledger
4. Prepare trial balance 5. Adjust entries
6. Financial statements
7. Close temporary accounts
🔹 Debits & Credits (DEA LOR)
• Debit increases: Dividends, Expenses, Assets
• Credit increases: Liabilities, Owner’s Equity, Revenues
🔹 Adjusting Entries
1. Unrecorded Receivables → DR A/R, CR Revenue
2. Unrecorded Liabilities → DR Expense, CR Payable
3. Prepaid Expenses → DR Expense, CR Asset
4. Unearned Revenues → DR Liability, CR Revenue
🔹 Closing Entries (RED accounts)
• DR Revenues → CR Retained Earnings
• DR Retained Earnings → CR Expenses DR Retained
Earnings → CR Dividends
✅ Unit 5: Internal Controls
• 5 Components: Control environment, risk assessment, control activities,
communication, monitoring
• Control Examples:
o Segregation of duties o
Authorization procedures o
Physical safeguards
• Bank Reconciliation: Adjust for deposits in transit, outstanding checks
