WGU D102 FINANCIAL ACCOUNTING
2026/2027 ULTIMATE OA PREP BUNDLE |
VERIFIED OBJECTIVE ASSESSMENT Q&A,
EXCEL WALKTHROUGH, FINANCIAL
STATEMENTS, ACCOUNTING CYCLE & EXAM
SUCCESS GUIDE
• This bundle contains 300 verified practice questions covering every topic tested
on the WGU D102 Financial Accounting OA — use it by attempting each question
first before checking the answer, then study the EXPERT RATIONALE carefully to
understand the why behind every correct choice.
• Features include highlighted correct answers, detailed EXPERT RATIONALE, and
full exam-topic coverage — making it your all-in-one study companion for crushing
the Objective Assessment on your first attempt.
QUESTION 1
Which financial statement reports a company's financial position at a specific
point in time?
A) Income Statement
B) Statement of Cash Flows
C) Statement of Retained Earnings
D) Statement of Owner's Equity
E) Balance Sheet
Correct Answer: E) Balance Sheet
EXPERT RATIONALE: The Balance Sheet (also called the Statement of Financial
Position) reports assets, liabilities, and equity at a specific date, giving a snapshot of
the company's financial position at that moment.
QUESTION 2
,Which accounting principle requires that revenue be recorded when it is
earned, regardless of when cash is received?
A) Matching Principle
B) Cost Principle
C) Full Disclosure Principle
D) Conservatism Principle
E) Revenue Recognition Principle
Correct Answer: E) Revenue Recognition Principle
EXPERT RATIONALE: The Revenue Recognition Principle (codified under ASC 606)
states that revenue is recognized when it is earned and realizable, not necessarily
when cash is collected.
QUESTION 3
What is the accounting equation?
A) Assets = Liabilities − Equity
B) Assets + Equity = Liabilities
C) Liabilities = Assets + Equity
D) Equity = Assets + Liabilities
E) Assets = Liabilities + Equity
Correct Answer: E) Assets = Liabilities + Equity
EXPERT RATIONALE: The fundamental accounting equation states that a
company's total assets are always equal to the sum of its liabilities and
stockholders' equity, forming the foundation of double-entry bookkeeping.
QUESTION 4
,Which of the following is considered a current asset?
A) Land
B) Equipment
C) Patent
D) Goodwill
E) Accounts Receivable
Correct Answer: E) Accounts Receivable
EXPERT RATIONALE: Current assets are expected to be converted to cash within
one year. Accounts Receivable represents money owed by customers and is
typically collected within the operating cycle.
QUESTION 5
Under the accrual basis of accounting, expenses are recorded when:
A) Cash is paid
B) The invoice is received
C) The fiscal year ends
D) Management approves the expense
E) They are incurred, regardless of payment
Correct Answer: E) They are incurred, regardless of payment
EXPERT RATIONALE: Accrual accounting requires expenses to be matched to the
period in which they are incurred, not when cash leaves the business, ensuring
proper matching with related revenues.
QUESTION 6
Which of the following accounts has a normal credit balance?
, A) Cash
B) Prepaid Insurance
C) Equipment
D) Dividends
E) Accounts Payable
Correct Answer: E) Accounts Payable
EXPERT RATIONALE: Accounts Payable is a liability account. Liability accounts have
normal credit balances — they increase with credits and decrease with debits.
QUESTION 7
What does GAAP stand for?
A) General Accounting and Auditing Principles
B) Government Approved Accounting Procedures
C) Generalized Accounting and Audit Practices
D) Global Accounting and Assurance Principles
E) Generally Accepted Accounting Principles
Correct Answer: E) Generally Accepted Accounting Principles
EXPERT RATIONALE: GAAP stands for Generally Accepted Accounting Principles —
the standard framework of guidelines for financial accounting used in the United
States.
QUESTION 8
Which financial statement shows revenues and expenses over a period of
time?
A) Balance Sheet
2026/2027 ULTIMATE OA PREP BUNDLE |
VERIFIED OBJECTIVE ASSESSMENT Q&A,
EXCEL WALKTHROUGH, FINANCIAL
STATEMENTS, ACCOUNTING CYCLE & EXAM
SUCCESS GUIDE
• This bundle contains 300 verified practice questions covering every topic tested
on the WGU D102 Financial Accounting OA — use it by attempting each question
first before checking the answer, then study the EXPERT RATIONALE carefully to
understand the why behind every correct choice.
• Features include highlighted correct answers, detailed EXPERT RATIONALE, and
full exam-topic coverage — making it your all-in-one study companion for crushing
the Objective Assessment on your first attempt.
QUESTION 1
Which financial statement reports a company's financial position at a specific
point in time?
A) Income Statement
B) Statement of Cash Flows
C) Statement of Retained Earnings
D) Statement of Owner's Equity
E) Balance Sheet
Correct Answer: E) Balance Sheet
EXPERT RATIONALE: The Balance Sheet (also called the Statement of Financial
Position) reports assets, liabilities, and equity at a specific date, giving a snapshot of
the company's financial position at that moment.
QUESTION 2
,Which accounting principle requires that revenue be recorded when it is
earned, regardless of when cash is received?
A) Matching Principle
B) Cost Principle
C) Full Disclosure Principle
D) Conservatism Principle
E) Revenue Recognition Principle
Correct Answer: E) Revenue Recognition Principle
EXPERT RATIONALE: The Revenue Recognition Principle (codified under ASC 606)
states that revenue is recognized when it is earned and realizable, not necessarily
when cash is collected.
QUESTION 3
What is the accounting equation?
A) Assets = Liabilities − Equity
B) Assets + Equity = Liabilities
C) Liabilities = Assets + Equity
D) Equity = Assets + Liabilities
E) Assets = Liabilities + Equity
Correct Answer: E) Assets = Liabilities + Equity
EXPERT RATIONALE: The fundamental accounting equation states that a
company's total assets are always equal to the sum of its liabilities and
stockholders' equity, forming the foundation of double-entry bookkeeping.
QUESTION 4
,Which of the following is considered a current asset?
A) Land
B) Equipment
C) Patent
D) Goodwill
E) Accounts Receivable
Correct Answer: E) Accounts Receivable
EXPERT RATIONALE: Current assets are expected to be converted to cash within
one year. Accounts Receivable represents money owed by customers and is
typically collected within the operating cycle.
QUESTION 5
Under the accrual basis of accounting, expenses are recorded when:
A) Cash is paid
B) The invoice is received
C) The fiscal year ends
D) Management approves the expense
E) They are incurred, regardless of payment
Correct Answer: E) They are incurred, regardless of payment
EXPERT RATIONALE: Accrual accounting requires expenses to be matched to the
period in which they are incurred, not when cash leaves the business, ensuring
proper matching with related revenues.
QUESTION 6
Which of the following accounts has a normal credit balance?
, A) Cash
B) Prepaid Insurance
C) Equipment
D) Dividends
E) Accounts Payable
Correct Answer: E) Accounts Payable
EXPERT RATIONALE: Accounts Payable is a liability account. Liability accounts have
normal credit balances — they increase with credits and decrease with debits.
QUESTION 7
What does GAAP stand for?
A) General Accounting and Auditing Principles
B) Government Approved Accounting Procedures
C) Generalized Accounting and Audit Practices
D) Global Accounting and Assurance Principles
E) Generally Accepted Accounting Principles
Correct Answer: E) Generally Accepted Accounting Principles
EXPERT RATIONALE: GAAP stands for Generally Accepted Accounting Principles —
the standard framework of guidelines for financial accounting used in the United
States.
QUESTION 8
Which financial statement shows revenues and expenses over a period of
time?
A) Balance Sheet
