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INTRODUCTION TO BUSINESS ACCOUNTING
D774 WGU OA EXAM / WGU D774
INTRODUCTION TO BUSINESS ACCOUNTING
ACTUAL OA EXAM 2025/2026 COMPLETE
ACCURATE EXAM REAL QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) A NEW UPDATED VERSION
|GUARNTEED PASS A+
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Question 1
A company
purchases 10,000ofequipmentbypaying10,000ofequipmentby
paying3,000 cash and signing a note payable for the
remainder. What is the effect on the accounting equation?
A) Assets
increase 10,000,liabilitiesincrease10,000,liabilitiesincrease7,0
00, equity
increases 3,000B)Assetsincrease3,000B)Assetsincrease7,000,
liabilities
increase 7,000,equityunchangedC)Assetsincrease7,000,equity
unchangedC)Assetsincrease10,000, liabilities
increase 7,000,equityunchangedD)Assetsincrease7,000,equit
yunchangedD)Assetsincrease7,000, liabilities decrease
$7,000, equity unchanged
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Answer: C
Rationale: Equipment (asset)
+10,000;Cash(asset)−10,000;Cash(asset)−3,000 → net asset
+7,000.Notepayable(liability)+7,000.Notepayable(liability)+7,
000. Equity unchanged. Equation: +7,000 = +7,000.
Question 2
Which transactions decrease both assets and equity? (Select
all that apply)
A) Paying employee salaries
B) Purchasing inventory on account
C) Declaring and paying dividends
D) Collecting accounts receivable
E) Recognizing unpaid advertising expense
Answer: A, C
Rationale: A: Cash ↓ (asset), expense ↑ → equity ↓. C: Cash
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↓, dividends ↓ retained earnings (equity). B: ↑ asset, ↑
liability. D: asset swap. E: ↑ liability, ↓ equity.
Question 3
Jordan’s Consulting: Cash 15,000,A/R15,000,A/R8,000,
Equipment 25,000,A/P25,000,A/P6,000,
N/P 12,000,CommonStock12,000,CommonStock20,000,
Retained
Earnings 10,000.Totalliabilities?A)10,000.Totalliabilities?A)18,
000
B) 15,000C)15,000C)22,000
D) $20,000
Answer: A
Rationale: Liabilities = A/P 6,000+N/P6,000+N/P12,000 =
$18,000.
INTRODUCTION TO BUSINESS ACCOUNTING
D774 WGU OA EXAM / WGU D774
INTRODUCTION TO BUSINESS ACCOUNTING
ACTUAL OA EXAM 2025/2026 COMPLETE
ACCURATE EXAM REAL QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) A NEW UPDATED VERSION
|GUARNTEED PASS A+
,Page 2 of 200
Question 1
A company
purchases 10,000ofequipmentbypaying10,000ofequipmentby
paying3,000 cash and signing a note payable for the
remainder. What is the effect on the accounting equation?
A) Assets
increase 10,000,liabilitiesincrease10,000,liabilitiesincrease7,0
00, equity
increases 3,000B)Assetsincrease3,000B)Assetsincrease7,000,
liabilities
increase 7,000,equityunchangedC)Assetsincrease7,000,equity
unchangedC)Assetsincrease10,000, liabilities
increase 7,000,equityunchangedD)Assetsincrease7,000,equit
yunchangedD)Assetsincrease7,000, liabilities decrease
$7,000, equity unchanged
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Answer: C
Rationale: Equipment (asset)
+10,000;Cash(asset)−10,000;Cash(asset)−3,000 → net asset
+7,000.Notepayable(liability)+7,000.Notepayable(liability)+7,
000. Equity unchanged. Equation: +7,000 = +7,000.
Question 2
Which transactions decrease both assets and equity? (Select
all that apply)
A) Paying employee salaries
B) Purchasing inventory on account
C) Declaring and paying dividends
D) Collecting accounts receivable
E) Recognizing unpaid advertising expense
Answer: A, C
Rationale: A: Cash ↓ (asset), expense ↑ → equity ↓. C: Cash
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↓, dividends ↓ retained earnings (equity). B: ↑ asset, ↑
liability. D: asset swap. E: ↑ liability, ↓ equity.
Question 3
Jordan’s Consulting: Cash 15,000,A/R15,000,A/R8,000,
Equipment 25,000,A/P25,000,A/P6,000,
N/P 12,000,CommonStock12,000,CommonStock20,000,
Retained
Earnings 10,000.Totalliabilities?A)10,000.Totalliabilities?A)18,
000
B) 15,000C)15,000C)22,000
D) $20,000
Answer: A
Rationale: Liabilities = A/P 6,000+N/P6,000+N/P12,000 =
$18,000.
