WGU D102 Financial Accounting Exam Prep
WGU D102 FINANCIAL ACCOUNTING EXAM PREP NEWEST
2026/2027 ACTUAL EXAM COMPLETE 200 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+||BRAND NEW VERSION!!
Which item is an expense item?
Cost of Goods Sold
Sales
Cash
Accounts Payable - Correct Answer-Cost of Goods Sold
What is a single-step income statement?
Emphasizes separate computation of gross profit and operating income
Groups and total revenues/groups and total expenses
Omits both interest expense and income tax expense
Includes all other expenses, but omits income tax expense - Correct Answer-
Groups and total revenues/groups and total expenses
What is "gross profit"?
Sales − Cost of Goods Sold.
1|Page
, WGU D102 Financial Accounting Exam Prep
Accounts Receivable − Accounts Payable
Total Assets − Total Liabilities
Total Revenues − Total Expenses - Correct Answer-Sales − Cost of Goods Sold.
What is a company's gross profit percentage?
Net Income ÷ Owners' Equity
Gross Profit ÷ Sales
Net Income ÷ Sales
Gross Profit ÷ Net Income - Correct Answer-Gross Profit ÷ Sales
Which item is a revenue item?
Accounts Receivable
Cash
Loan Payable
Sales - Correct Answer-Sales
What is an income statement?
Report of the assets, liabilities, and equity of a company as of a point in time
Report of the operating, investing, and financing cash flows of a company during a
period
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, WGU D102 Financial Accounting Exam Prep
Report of the revenues and expenses of a company during a period
Report of the total of the balances of all of a company's bank accounts - Correct
Answer-Report of the revenues and expenses of a company during a period
Report of the total of the balances of all of a company's bank accounts
What is an example of an expense that fits under the heading "selling, general,
and administrative expense"?
Wages of company headquarters accounting staff
Fees earned by providing services
Purchase cost of inventory items bought from suppliers
Cost paid for the use of someone else's money - Correct Answer-Wages of
company headquarters accounting staff
What is depreciation expense?
The amount of uncollectible accounts created by credit sales during the year
The amount of inventory lost, stolen, or sold during the year
The amount of gross profit divided by sales for the year
The amount of wear and tear on long-lived assets during the year - Correct
Answer-The amount of wear and tear on long-lived assets during the year
Which are components of an income statement?
3|Page
, WGU D102 Financial Accounting Exam Prep
Current and noncurrent assets
Retained earnings and dividends
Short-term and accrued liabilities
Revenue and expenses - Correct Answer-Revenue and expenses
What is net income?
The total amount of assets reported in the balance sheet
The amount of cash on hand at the end of the year
The amount of assets consumed through business operations
The amount by which revenues exceed expenses - Correct Answer-The amount by
which revenues exceed expenses
How is earnings per share (EPS) computed?
Net income divided by the number of shares
Net income divided by total sales revenue
Total equity divided by sales revenue
Total expenses divided by sales revenue - Correct Answer-Net income divided by
the number of shares
What is bad debt expense?
Amount of uncollectible accounts created by credit sales during the year
4|Page
WGU D102 FINANCIAL ACCOUNTING EXAM PREP NEWEST
2026/2027 ACTUAL EXAM COMPLETE 200 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+||BRAND NEW VERSION!!
Which item is an expense item?
Cost of Goods Sold
Sales
Cash
Accounts Payable - Correct Answer-Cost of Goods Sold
What is a single-step income statement?
Emphasizes separate computation of gross profit and operating income
Groups and total revenues/groups and total expenses
Omits both interest expense and income tax expense
Includes all other expenses, but omits income tax expense - Correct Answer-
Groups and total revenues/groups and total expenses
What is "gross profit"?
Sales − Cost of Goods Sold.
1|Page
, WGU D102 Financial Accounting Exam Prep
Accounts Receivable − Accounts Payable
Total Assets − Total Liabilities
Total Revenues − Total Expenses - Correct Answer-Sales − Cost of Goods Sold.
What is a company's gross profit percentage?
Net Income ÷ Owners' Equity
Gross Profit ÷ Sales
Net Income ÷ Sales
Gross Profit ÷ Net Income - Correct Answer-Gross Profit ÷ Sales
Which item is a revenue item?
Accounts Receivable
Cash
Loan Payable
Sales - Correct Answer-Sales
What is an income statement?
Report of the assets, liabilities, and equity of a company as of a point in time
Report of the operating, investing, and financing cash flows of a company during a
period
2|Page
, WGU D102 Financial Accounting Exam Prep
Report of the revenues and expenses of a company during a period
Report of the total of the balances of all of a company's bank accounts - Correct
Answer-Report of the revenues and expenses of a company during a period
Report of the total of the balances of all of a company's bank accounts
What is an example of an expense that fits under the heading "selling, general,
and administrative expense"?
Wages of company headquarters accounting staff
Fees earned by providing services
Purchase cost of inventory items bought from suppliers
Cost paid for the use of someone else's money - Correct Answer-Wages of
company headquarters accounting staff
What is depreciation expense?
The amount of uncollectible accounts created by credit sales during the year
The amount of inventory lost, stolen, or sold during the year
The amount of gross profit divided by sales for the year
The amount of wear and tear on long-lived assets during the year - Correct
Answer-The amount of wear and tear on long-lived assets during the year
Which are components of an income statement?
3|Page
, WGU D102 Financial Accounting Exam Prep
Current and noncurrent assets
Retained earnings and dividends
Short-term and accrued liabilities
Revenue and expenses - Correct Answer-Revenue and expenses
What is net income?
The total amount of assets reported in the balance sheet
The amount of cash on hand at the end of the year
The amount of assets consumed through business operations
The amount by which revenues exceed expenses - Correct Answer-The amount by
which revenues exceed expenses
How is earnings per share (EPS) computed?
Net income divided by the number of shares
Net income divided by total sales revenue
Total equity divided by sales revenue
Total expenses divided by sales revenue - Correct Answer-Net income divided by
the number of shares
What is bad debt expense?
Amount of uncollectible accounts created by credit sales during the year
4|Page
