WGU D102
WGU D102 FINANCIAL ACCOUNTING
OBJECTIVE QUESTIONS AND
ANSWERS
What is a balance sheet?
Report of the total of the balances of all of a company's bank accounts
Report of the assets, liabilities, and equity of a company as of a point in time
Report of the revenues and expenses of a company during a period
Report of the operating, investing, and financing cash flows of a company during a
period - Report of the assets, liabilities, and equity of a company as of a point in
time
Which item is a liability?
Accounts payable
Retained earnings
Accounts receivable
Capital stock - Accounts payable
Which item is an owners' equity item?
Accounts payable
Accounts receivable
Retained earnings
WGU D102
,WGU D102
Inventory - Retained earnings
Strime Company's assets equal $104,000, and its stockholders' equity totals
$68,500.
What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000 - $35,500
The Whole Pine Company's liabilities equal $124,000, and its stockholders' equity
totals $68,500. What is the amount of its assets?
$55,500
$124,000
$68,500
$192,500 - $192,500
Which is the proper description of the accounting equation?
Owners' Equity = Assets
Assets = Liabilities + Owners' Equity
Assets = Liabilities
WGU D102
,WGU D102
Owners' Equity = Liabilities - Assets = Liabilities + Owners' Equity
After the effects of every transaction are considered and recorded, what must the
accounting equation do?
Equal itself, or balance
Equal total owners' equity
Equal total liabilities
Equal total assets - Equal itself, or balance
Which statement best describes the main features of inventories?
Goods due from customers who have purchased on account
Goods purchased and held for sale
Goods used by a company on a long-term basis, usually more than five years
Goods used by company employees on a daily basis - Goods purchased and held
for sale
What is a classified balance sheet?
A balance sheet that is not publicly disclosed
A balance sheet that distinguishes between current and long-term assets
A balance sheet that is for a period of time rather than as of a point in time
A balance sheet that separates liabilities from equities - A balance sheet that
distinguishes between current and long-term assets
WGU D102
, WGU D102
What does owners' equity represent?
The difference between total assets and total liabilities
The difference between current assets and long-term assets
The difference between total liabilities and total owners' equity
The difference between current liabilities and long-term liabilities - The difference
between total assets and total liabilities
For most companies, when assets or liabilities are classified as "current" on the
balance sheet, it generally means the related assets or liabilities will be turned into
cash or will be required to be paid, respectively, within what time frame?
The next quarter
The next six months
The next month
The next year - The next year
What is owners' equity?
An economic resource that is owned or controlled by a company
An obligation to pay cash, transfer other assets, or provide services to someone
else
A residual amount representing the net assets available after all obligations have
been satisfied
WGU D102
WGU D102 FINANCIAL ACCOUNTING
OBJECTIVE QUESTIONS AND
ANSWERS
What is a balance sheet?
Report of the total of the balances of all of a company's bank accounts
Report of the assets, liabilities, and equity of a company as of a point in time
Report of the revenues and expenses of a company during a period
Report of the operating, investing, and financing cash flows of a company during a
period - Report of the assets, liabilities, and equity of a company as of a point in
time
Which item is a liability?
Accounts payable
Retained earnings
Accounts receivable
Capital stock - Accounts payable
Which item is an owners' equity item?
Accounts payable
Accounts receivable
Retained earnings
WGU D102
,WGU D102
Inventory - Retained earnings
Strime Company's assets equal $104,000, and its stockholders' equity totals
$68,500.
What is the amount of its liabilities?
$35,500
$172,500
$68,500
$104,000 - $35,500
The Whole Pine Company's liabilities equal $124,000, and its stockholders' equity
totals $68,500. What is the amount of its assets?
$55,500
$124,000
$68,500
$192,500 - $192,500
Which is the proper description of the accounting equation?
Owners' Equity = Assets
Assets = Liabilities + Owners' Equity
Assets = Liabilities
WGU D102
,WGU D102
Owners' Equity = Liabilities - Assets = Liabilities + Owners' Equity
After the effects of every transaction are considered and recorded, what must the
accounting equation do?
Equal itself, or balance
Equal total owners' equity
Equal total liabilities
Equal total assets - Equal itself, or balance
Which statement best describes the main features of inventories?
Goods due from customers who have purchased on account
Goods purchased and held for sale
Goods used by a company on a long-term basis, usually more than five years
Goods used by company employees on a daily basis - Goods purchased and held
for sale
What is a classified balance sheet?
A balance sheet that is not publicly disclosed
A balance sheet that distinguishes between current and long-term assets
A balance sheet that is for a period of time rather than as of a point in time
A balance sheet that separates liabilities from equities - A balance sheet that
distinguishes between current and long-term assets
WGU D102
, WGU D102
What does owners' equity represent?
The difference between total assets and total liabilities
The difference between current assets and long-term assets
The difference between total liabilities and total owners' equity
The difference between current liabilities and long-term liabilities - The difference
between total assets and total liabilities
For most companies, when assets or liabilities are classified as "current" on the
balance sheet, it generally means the related assets or liabilities will be turned into
cash or will be required to be paid, respectively, within what time frame?
The next quarter
The next six months
The next month
The next year - The next year
What is owners' equity?
An economic resource that is owned or controlled by a company
An obligation to pay cash, transfer other assets, or provide services to someone
else
A residual amount representing the net assets available after all obligations have
been satisfied
WGU D102
