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WGU D774 Pre-Assessment /WGU D774
Introduction To Business PA Newest 2025-2026
Complete All Questions And Correct Detailed
Answers (Verified Answers) |Already Graded
A+||Brand New Version!
What is the accounting equation, and what are its elements?
It shows what a company owns and how what it owns was financed—
through either debt or equity.
Assets = Liabilities + Owners' Equity.
What is a classified balance sheet?
A balance sheet distinguishes between current and long-term assets and
current and long-term liabilities.
What is a comparative balance sheet?
A balance sheet includes information for both the current year and one
or more preceding years allowing users to identify any significant
changes in particular items from year to year.
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Assets and liabilities are usually listed in what order on the balance
sheet?
Assets and liabilities are usually listed on a balance sheet in order of
their liquidity, that is, how fast and easily they can be converted to cash.
Owners' equity has two components. What are they?
Capital Stock and Retained Earnings
You know the amount of a company's assets and the amount of the
company's owners' equity. According to the accounting equation, what
computation should you perform to find out the amount of the
company's liabilities?
Assets minus owners' equity
Kretsmart Company's financial records include these accounts at the end
of the year.
Inventory, Loans Payable, Retained Earnings, Cash, Land, Accounts
Receivable, Accounts Payable, Capital Stock (also called Paid-in
Capital), Unearned Revenue
Which set of items composes a complete listing of Kretsmart's assets?
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Cash, accounts receivable, inventory, and land
Which action causes owners' equity to increase?
Generating net income
What is the difference between a regular balance sheet and a classified
balance sheet?
Assets and liabilities are reported separately based on whether they are
current or long term.
What is an accurate description of "mortgage payable"?
Obligation arising from the amount of unpaid purchase price related to
the purchase of property
What is revenue?
The amount a company receives from the sale of goods and services.
What is an expense?
WGU D774 Pre-Assessment /WGU D774
Introduction To Business PA Newest 2025-2026
Complete All Questions And Correct Detailed
Answers (Verified Answers) |Already Graded
A+||Brand New Version!
What is the accounting equation, and what are its elements?
It shows what a company owns and how what it owns was financed—
through either debt or equity.
Assets = Liabilities + Owners' Equity.
What is a classified balance sheet?
A balance sheet distinguishes between current and long-term assets and
current and long-term liabilities.
What is a comparative balance sheet?
A balance sheet includes information for both the current year and one
or more preceding years allowing users to identify any significant
changes in particular items from year to year.
,2|Page
Assets and liabilities are usually listed in what order on the balance
sheet?
Assets and liabilities are usually listed on a balance sheet in order of
their liquidity, that is, how fast and easily they can be converted to cash.
Owners' equity has two components. What are they?
Capital Stock and Retained Earnings
You know the amount of a company's assets and the amount of the
company's owners' equity. According to the accounting equation, what
computation should you perform to find out the amount of the
company's liabilities?
Assets minus owners' equity
Kretsmart Company's financial records include these accounts at the end
of the year.
Inventory, Loans Payable, Retained Earnings, Cash, Land, Accounts
Receivable, Accounts Payable, Capital Stock (also called Paid-in
Capital), Unearned Revenue
Which set of items composes a complete listing of Kretsmart's assets?
, 3|Page
Cash, accounts receivable, inventory, and land
Which action causes owners' equity to increase?
Generating net income
What is the difference between a regular balance sheet and a classified
balance sheet?
Assets and liabilities are reported separately based on whether they are
current or long term.
What is an accurate description of "mortgage payable"?
Obligation arising from the amount of unpaid purchase price related to
the purchase of property
What is revenue?
The amount a company receives from the sale of goods and services.
What is an expense?
