WGU D774 OBJECTIVE ASSESSMENT FINAL NEWEST
2026 ACTUAL EXAM| D774 INTRODUCTION TO
BUSINESS ACCOUNTING OA FINAL REVIEW WITH
COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
A multinational corporation wants to hire an audit firm with extensive
experience in financial statement auditing for publicly traded companies.
Which type of firm would be the most suitable choice?
A. Big Four
B. Big Seven
C. COSO-certified firm
D. CMA-certified firm – Correct Answer - A. Big Four
Which financial statement reports the profit or loss using the accrual
basis of accounting?
A. Bank Reconciliation
B. Balance sheet
C. Income statement
D. Statement of cash flows – Correct Answer - C. Income statement
The shopkeeper receives $500 from selling products in their store.
Where should this be reported on the income statement?
A. Equity
B. Expenses
pg. 1
,C. Liabilities
D. Revenues – Correct Answer - D. Revenues
The investors of Kretmart are interested in whether Krestmart has been
profitable for the last year. The investors received the complete financial
statements for the company. Which report should they review to see if
the company was profitable?
A. Balance Sheet
B. Income statement
C. Statement of cash flows
D. Statement of financial position – Correct Answer - B. income
statement
A bakery sells $10,000 worth of cakes in one month. But after
subtracting the cost of ingredients, rent, and wages, the business is left
with $3500. Where should the user of the income statement expect to see
the $10,000?
A. Gross Profit
B. Net Income
C. Retained Earnings
D. Revenue – Correct Answer - D. Revenue
A retailer reports an increase in revenue, but a decrease in income from
the previous year. Why can income decrease while revenue increases?
A. The company received more loans.
B. A large tax refund reduced overall expenses.
C. Higher expenses offset the revenue increase.
pg. 2
,D. The company did not record all transactions. – Correct Answer - C.
Higher expenses offset the revenue increase.
Which type of income statement should report gross margin in the
income statement?
A. Contribution margin
B. Direct method
C. Multiple step
D. Single step – Correct Answer - C. Multiple Step
Given the following data:
- budget sales price per unit: $50
- budgeted quantity sold: 1,000 units
- actual sales price per unit: $55
- actual quantity sold: 1,100 units
What is the total revenue variance?
A. $5,500 favorable
B. $5,500 unfavorable
C. $10,500 favorable
D. $10,500 unfavorable – Correct Answer - C. $10,500 favorable
A company's sales figures for the last three years are as follows:
- Year 1: $500,000
- Year 2: $550,000
pg. 3
, - Year 3: - $600,000
What is the expected sales revenue for Year 4 if this trend continues?
A. $625,000
B. $650,000
C. $675,000
D. $700,000 – Correct Answer - B. $650,000
The company expected labor cost to be $15 per hour for 1000 hours of
work, but the actual cost was $14 per hour for the same 1000 hours.
What is the labor rate variance?
A. $500 favorable.
B. $500 unfavorable.
C. $1000 favorable.
D. $1000 unfavorable. – Correct Answer - C. $1000 favorable.
Which ancient civilization dates to the early development of accounting?
A. Ancient Egypt. (c. 3100-30 BCE)
B. Ancient Greece. (c. 1200 BCE - 600 CE)
C. Ancient Mesopotamia. (c. 3000 BCE)
D. Ancient Rome. (c. 753 BCE - 476 CE) – Correct Answer - C. Ancient
Mesopotamia. (c. 3000 BCE)
Which year is associated with the stock market crash that had a profound
economic impact?
A. 1918
pg. 4
2026 ACTUAL EXAM| D774 INTRODUCTION TO
BUSINESS ACCOUNTING OA FINAL REVIEW WITH
COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
A multinational corporation wants to hire an audit firm with extensive
experience in financial statement auditing for publicly traded companies.
Which type of firm would be the most suitable choice?
A. Big Four
B. Big Seven
C. COSO-certified firm
D. CMA-certified firm – Correct Answer - A. Big Four
Which financial statement reports the profit or loss using the accrual
basis of accounting?
A. Bank Reconciliation
B. Balance sheet
C. Income statement
D. Statement of cash flows – Correct Answer - C. Income statement
The shopkeeper receives $500 from selling products in their store.
Where should this be reported on the income statement?
A. Equity
B. Expenses
pg. 1
,C. Liabilities
D. Revenues – Correct Answer - D. Revenues
The investors of Kretmart are interested in whether Krestmart has been
profitable for the last year. The investors received the complete financial
statements for the company. Which report should they review to see if
the company was profitable?
A. Balance Sheet
B. Income statement
C. Statement of cash flows
D. Statement of financial position – Correct Answer - B. income
statement
A bakery sells $10,000 worth of cakes in one month. But after
subtracting the cost of ingredients, rent, and wages, the business is left
with $3500. Where should the user of the income statement expect to see
the $10,000?
A. Gross Profit
B. Net Income
C. Retained Earnings
D. Revenue – Correct Answer - D. Revenue
A retailer reports an increase in revenue, but a decrease in income from
the previous year. Why can income decrease while revenue increases?
A. The company received more loans.
B. A large tax refund reduced overall expenses.
C. Higher expenses offset the revenue increase.
pg. 2
,D. The company did not record all transactions. – Correct Answer - C.
Higher expenses offset the revenue increase.
Which type of income statement should report gross margin in the
income statement?
A. Contribution margin
B. Direct method
C. Multiple step
D. Single step – Correct Answer - C. Multiple Step
Given the following data:
- budget sales price per unit: $50
- budgeted quantity sold: 1,000 units
- actual sales price per unit: $55
- actual quantity sold: 1,100 units
What is the total revenue variance?
A. $5,500 favorable
B. $5,500 unfavorable
C. $10,500 favorable
D. $10,500 unfavorable – Correct Answer - C. $10,500 favorable
A company's sales figures for the last three years are as follows:
- Year 1: $500,000
- Year 2: $550,000
pg. 3
, - Year 3: - $600,000
What is the expected sales revenue for Year 4 if this trend continues?
A. $625,000
B. $650,000
C. $675,000
D. $700,000 – Correct Answer - B. $650,000
The company expected labor cost to be $15 per hour for 1000 hours of
work, but the actual cost was $14 per hour for the same 1000 hours.
What is the labor rate variance?
A. $500 favorable.
B. $500 unfavorable.
C. $1000 favorable.
D. $1000 unfavorable. – Correct Answer - C. $1000 favorable.
Which ancient civilization dates to the early development of accounting?
A. Ancient Egypt. (c. 3100-30 BCE)
B. Ancient Greece. (c. 1200 BCE - 600 CE)
C. Ancient Mesopotamia. (c. 3000 BCE)
D. Ancient Rome. (c. 753 BCE - 476 CE) – Correct Answer - C. Ancient
Mesopotamia. (c. 3000 BCE)
Which year is associated with the stock market crash that had a profound
economic impact?
A. 1918
pg. 4
