WGU D774 – Introduction to Business Accounting (2025) | Verified
Questions & Accurate Answers
1. Common uses of managerial accounting typically include:
Reporting service profitability.
Controlling performance measures.
Pricing of services.
All of these are correct.
Planning and control of operations.
2. What are investing activities primarily concerned with in accounting?
Purchasing and selling property, plant, and equipment
Managing day-to-day operations
Collecting accounts receivable
Issuing stocks and bonds
3. Describe the relationship between revenues and net income as presented
in an income statement.
Net income is calculated before revenues are reported on the
income statement.
Revenues are the same as net income, as both represent total
earnings.
Revenues are the total income generated by the company, and net
income is the profit remaining after all expenses are deducted
,from revenues.
, Revenues are only a portion of net income, which includes other
income sources.
4. Which one is Owner's Equity?
Capital Stock
Mortgage Payable
Inventory
5. Accounts Payable, Notes Payable due within one year, Salaries Payable,
Interest Payable, and Unearned Revenue are all _____ _.
Stockholders' equity
Current liabilities
Long-term liabilities
Long-term assets
6. Describe the significance of revenues being listed first on the income
statement.
Revenues are included to highlight the company's liabilities.
Revenues are listed first to show the total expenses incurred by the
company.
Revenues are listed first on the income statement as they
represent the total income generated from sales before any
expenses are deducted.
Revenues are the final figure on the income statement indicating
profit.
, 7. What specific types of budgets are included in the budgets of
manufacturing companies?
Operational and administrative budgets
Cash flow and capital expenditure budgets
Sales and marketing budgets
Production and product cost budgets
8. A company has these accounts in its financial records at the end of the year:
Land, Retained Earnings, Accounts Receivable, Loans Payable, Accounts
Payable, Capital Stock, Cash. Which accounts are liabilities?
Cash, Capital Stock, and Retained Earnings
Cash, Accounts Receivable, and Land
Accounts Payable and Loans Payable
Capital Stock and Retained Earnings
9. Describe the significance of work-in-process inventory in a manufacturing
setting.
Work-in-process inventory is irrelevant to production efficiency.
Work-in-process inventory is the final product ready for sale.
Work-in-process inventory includes only raw materials.
Work-in-process inventory represents the costs of products that
are in the production process but not yet completed.
10. Describe the relationship between the sales budget and the production
budget in the context of preparing a materials cost budget.
The production budget is the first step in creating the sales budget.
Questions & Accurate Answers
1. Common uses of managerial accounting typically include:
Reporting service profitability.
Controlling performance measures.
Pricing of services.
All of these are correct.
Planning and control of operations.
2. What are investing activities primarily concerned with in accounting?
Purchasing and selling property, plant, and equipment
Managing day-to-day operations
Collecting accounts receivable
Issuing stocks and bonds
3. Describe the relationship between revenues and net income as presented
in an income statement.
Net income is calculated before revenues are reported on the
income statement.
Revenues are the same as net income, as both represent total
earnings.
Revenues are the total income generated by the company, and net
income is the profit remaining after all expenses are deducted
,from revenues.
, Revenues are only a portion of net income, which includes other
income sources.
4. Which one is Owner's Equity?
Capital Stock
Mortgage Payable
Inventory
5. Accounts Payable, Notes Payable due within one year, Salaries Payable,
Interest Payable, and Unearned Revenue are all _____ _.
Stockholders' equity
Current liabilities
Long-term liabilities
Long-term assets
6. Describe the significance of revenues being listed first on the income
statement.
Revenues are included to highlight the company's liabilities.
Revenues are listed first to show the total expenses incurred by the
company.
Revenues are listed first on the income statement as they
represent the total income generated from sales before any
expenses are deducted.
Revenues are the final figure on the income statement indicating
profit.
, 7. What specific types of budgets are included in the budgets of
manufacturing companies?
Operational and administrative budgets
Cash flow and capital expenditure budgets
Sales and marketing budgets
Production and product cost budgets
8. A company has these accounts in its financial records at the end of the year:
Land, Retained Earnings, Accounts Receivable, Loans Payable, Accounts
Payable, Capital Stock, Cash. Which accounts are liabilities?
Cash, Capital Stock, and Retained Earnings
Cash, Accounts Receivable, and Land
Accounts Payable and Loans Payable
Capital Stock and Retained Earnings
9. Describe the significance of work-in-process inventory in a manufacturing
setting.
Work-in-process inventory is irrelevant to production efficiency.
Work-in-process inventory is the final product ready for sale.
Work-in-process inventory includes only raw materials.
Work-in-process inventory represents the costs of products that
are in the production process but not yet completed.
10. Describe the relationship between the sales budget and the production
budget in the context of preparing a materials cost budget.
The production budget is the first step in creating the sales budget.
