Financial Accounting - D102 WGU EXAM |\ |\ |\ |\ |\ |\
QUESTIONS WITH ANSWERS |\ |\
Account - CORRECT ANSWERS ✔✔An accounting record in which
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the results of transactions are accumulated; shows increases,
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decreases, and a balance |\ |\ |\
Accounts Receivable - CORRECT ANSWERS ✔✔A current asset
|\ |\ |\ |\ |\ |\ |\ |\
representing money due for services performed or merchandise |\ |\ |\ |\ |\ |\ |\ |\
sold on credit |\ |\
On August 1 of Year 1, a company paid $7,200 for two years'
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rent. The rental period starts on August 1 of Year 1.
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Which debit or credit is correctly included in the adjusting journal
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entry necessary on December 31 of Year 1? - CORRECT
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ANSWERS ✔✔1. Credit to rent expense for $1,500. |\ |\ |\ |\ |\ |\ |\
2. Credit to prepaid rent for $5,100.
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3. Debit to rent expense for $1,500.
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4. Debit to rent expense for $5,100.
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Correct: 3 |\
On October 1 of Year 1, a company made a $60,000 cash loan to
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another company. The interest rate on the loan is 5%. No cash
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
payments will be collected on the loan until September 30 of Year
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2.
|\
,Which debit or credit is correctly included in the adjusting journal
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
entry necessary on the company's books (the lender) on
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
December 31 with respect to this loan? - CORRECT ANSWERS
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✔✔1. Credit to interest revenue for $750.
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2. Debit to interest revenue for $2,250.
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3. Credit to interest revenue for $2,250.
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4. Debit to interest revenue for $750.
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Correct: 2 |\
On January 1, a company had office supplies costing $4,600.
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During the year, the company bought (and recorded) additional
|\ |\ |\ |\ |\ |\ |\ |\ |\
office supplies costing $9,900. On December 31, a physical count
|\ |\ |\ |\ |\ |\ |\ |\ |\
of office supplies revealed that supplies costing $2,900
|\ |\ |\ |\ |\ |\ |\ |\ |\
remained.
Which debit or credit is correctly included in the adjusting journal
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
entry necessary on December 31 to record the supplies that the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
company used during the year? - CORRECT ANSWERS ✔✔1.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Credit to office supplies expense for $11,600.
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2. Debit to office supplies for $11,600.
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3. Credit to office supplies for $11,600.
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4. Debit to cash for $11,600.
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Correct: 3 |\
, At the end of the year, before any closing entries are made,
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which account has a debit balance? - CORRECT ANSWERS
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✔✔Cost of goods sold |\ |\ |\
Revenues: Credit or Debit on the book? - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Credits; they represent increases of equity |\ |\ |\ |\ |\
Expenses and Dividends: Credit or Debit on the books? -
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CORRECT ANSWERS ✔✔Debits; they represent decreases in
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equity
Steps to closing Entries: - CORRECT ANSWERS ✔✔1. Separate
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Nominal accounts from real accounts |\ |\ |\ |\
2. Debit or credit each nominal account to make the balance = 0
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3. Corresponding debit or credit to Retained Earnings
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How is the ending retained earnings calculated? - CORRECT
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ANSWERS ✔✔Beginning retained earnings + Net Income - |\ |\ |\ |\ |\ |\ |\ |\
Dividends
Net Income - CORRECT ANSWERS ✔✔the difference between total
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revenue and total expenses
|\ |\ |\ |\
On January 6, a credit sale was made for $1,000. Terms for the
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sale were 4/10, n/30. Cash for the sale was collected on January
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25.
QUESTIONS WITH ANSWERS |\ |\
Account - CORRECT ANSWERS ✔✔An accounting record in which
|\ |\ |\ |\ |\ |\ |\ |\ |\
the results of transactions are accumulated; shows increases,
|\ |\ |\ |\ |\ |\ |\ |\
decreases, and a balance |\ |\ |\
Accounts Receivable - CORRECT ANSWERS ✔✔A current asset
|\ |\ |\ |\ |\ |\ |\ |\
representing money due for services performed or merchandise |\ |\ |\ |\ |\ |\ |\ |\
sold on credit |\ |\
On August 1 of Year 1, a company paid $7,200 for two years'
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
rent. The rental period starts on August 1 of Year 1.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Which debit or credit is correctly included in the adjusting journal
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
entry necessary on December 31 of Year 1? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔1. Credit to rent expense for $1,500. |\ |\ |\ |\ |\ |\ |\
2. Credit to prepaid rent for $5,100.
|\ |\ |\ |\ |\ |\
3. Debit to rent expense for $1,500.
|\ |\ |\ |\ |\ |\
4. Debit to rent expense for $5,100.
|\ |\ |\ |\ |\ |\
Correct: 3 |\
On October 1 of Year 1, a company made a $60,000 cash loan to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
another company. The interest rate on the loan is 5%. No cash
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
payments will be collected on the loan until September 30 of Year
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
2.
|\
,Which debit or credit is correctly included in the adjusting journal
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
entry necessary on the company's books (the lender) on
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
December 31 with respect to this loan? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔1. Credit to interest revenue for $750.
|\ |\ |\ |\ |\ |\
2. Debit to interest revenue for $2,250.
|\ |\ |\ |\ |\ |\
3. Credit to interest revenue for $2,250.
|\ |\ |\ |\ |\ |\
4. Debit to interest revenue for $750.
|\ |\ |\ |\ |\ |\
Correct: 2 |\
On January 1, a company had office supplies costing $4,600.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
During the year, the company bought (and recorded) additional
|\ |\ |\ |\ |\ |\ |\ |\ |\
office supplies costing $9,900. On December 31, a physical count
|\ |\ |\ |\ |\ |\ |\ |\ |\
of office supplies revealed that supplies costing $2,900
|\ |\ |\ |\ |\ |\ |\ |\ |\
remained.
Which debit or credit is correctly included in the adjusting journal
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
entry necessary on December 31 to record the supplies that the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
company used during the year? - CORRECT ANSWERS ✔✔1.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Credit to office supplies expense for $11,600.
|\ |\ |\ |\ |\ |\
2. Debit to office supplies for $11,600.
|\ |\ |\ |\ |\ |\
3. Credit to office supplies for $11,600.
|\ |\ |\ |\ |\ |\
4. Debit to cash for $11,600.
|\ |\ |\ |\ |\
Correct: 3 |\
, At the end of the year, before any closing entries are made,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
which account has a debit balance? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Cost of goods sold |\ |\ |\
Revenues: Credit or Debit on the book? - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Credits; they represent increases of equity |\ |\ |\ |\ |\
Expenses and Dividends: Credit or Debit on the books? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Debits; they represent decreases in
|\ |\ |\ |\ |\ |\ |\
equity
Steps to closing Entries: - CORRECT ANSWERS ✔✔1. Separate
|\ |\ |\ |\ |\ |\ |\ |\ |\
Nominal accounts from real accounts |\ |\ |\ |\
2. Debit or credit each nominal account to make the balance = 0
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
3. Corresponding debit or credit to Retained Earnings
|\ |\ |\ |\ |\ |\ |\
How is the ending retained earnings calculated? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Beginning retained earnings + Net Income - |\ |\ |\ |\ |\ |\ |\ |\
Dividends
Net Income - CORRECT ANSWERS ✔✔the difference between total
|\ |\ |\ |\ |\ |\ |\ |\
revenue and total expenses
|\ |\ |\ |\
On January 6, a credit sale was made for $1,000. Terms for the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
sale were 4/10, n/30. Cash for the sale was collected on January
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
25.
