1|Page
WGU D774 PRE-ASSESSMENT /WGU D774 INTRODUCTION TO
BUSINESS PA EXAM LATEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
Which set of items composes a complete listing of Kretsmart's
assets? - ANSWER-Cash, accounts receivable, inventory, and
land
Which action causes owners' equity to increase? - ANSWER-
Generating Net Income
What is the difference between a regular balance sheet and a
classified balance sheet? - ANSWER-In 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"? -
ANSWER-Obligation arising from the amount of unpaid purchase
price related to the purchase of property.
,2|Page
What is revenue? - ANSWER-The amount a company receives
from the sale of goods and services.
What is an expense? - ANSWER-The costs incurred to support
normal business operations and generate revenue.
How is net income computed? - ANSWER-Net income is
calculated as the difference between revenues and all expenses.
Revenue - Expenses = Net Income
What is a multi-step income statement? - ANSWER-A multi-step
income statement is where the income statement is divided into
separate sections, and various subtotals are reported that reflect
different levels of profitability. These different measures of
profitability allow users to better compare the performance of a
company over time.
What is a common-size income statment? - ANSWER-A common-
size income statement is where the income statement numbers
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have been standardized as a percentage of sales. Common-size
financial statements make it easier for users to compare financial
statements across time for the same company or to compare
financial statements across companies at the same point in time.
When the terms are correctly used, what is the difference
between revenue and income? - ANSWER-Income is a net
concept and revenue is a gross concept.
How is net income computed? - ANSWER-Revenue - Expenses
In a carefully constructed multi-step income statement, which item
is listed between sales and gross profit? - ANSWER-Cost of
goods sold
When should a passenger airline report the revenue associated
with a passenger trip? - ANSWER-When the customer has
completed the trip
WGU D774 PRE-ASSESSMENT /WGU D774 INTRODUCTION TO
BUSINESS PA EXAM LATEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
Which set of items composes a complete listing of Kretsmart's
assets? - ANSWER-Cash, accounts receivable, inventory, and
land
Which action causes owners' equity to increase? - ANSWER-
Generating Net Income
What is the difference between a regular balance sheet and a
classified balance sheet? - ANSWER-In 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"? -
ANSWER-Obligation arising from the amount of unpaid purchase
price related to the purchase of property.
,2|Page
What is revenue? - ANSWER-The amount a company receives
from the sale of goods and services.
What is an expense? - ANSWER-The costs incurred to support
normal business operations and generate revenue.
How is net income computed? - ANSWER-Net income is
calculated as the difference between revenues and all expenses.
Revenue - Expenses = Net Income
What is a multi-step income statement? - ANSWER-A multi-step
income statement is where the income statement is divided into
separate sections, and various subtotals are reported that reflect
different levels of profitability. These different measures of
profitability allow users to better compare the performance of a
company over time.
What is a common-size income statment? - ANSWER-A common-
size income statement is where the income statement numbers
, 3|Page
have been standardized as a percentage of sales. Common-size
financial statements make it easier for users to compare financial
statements across time for the same company or to compare
financial statements across companies at the same point in time.
When the terms are correctly used, what is the difference
between revenue and income? - ANSWER-Income is a net
concept and revenue is a gross concept.
How is net income computed? - ANSWER-Revenue - Expenses
In a carefully constructed multi-step income statement, which item
is listed between sales and gross profit? - ANSWER-Cost of
goods sold
When should a passenger airline report the revenue associated
with a passenger trip? - ANSWER-When the customer has
completed the trip
