WGU D366 Cause & Effect Questions And
100% Correct Answers 2025-2026 Already
Graded A+
Impact of Sale of Goods on Credit on financial
statements - ANSWER-• Cash Flow Statement:
No immediate cash inflow (increases accounts
receivable). • Balance Sheet: Increases accounts
receivable and decreases inventory. • Income
Statement: Increases revenue and cost of goods
sold (COGS)
,Impact of Purchase of Inventory on Credit on
financial statements - ANSWER-• Cash Flow
Statement: No immediate cash outflow
(increases accounts payable). • Balance Sheet:
Increases inventory and accounts payable. •
Income Statement: No impact on the income
statement until inventory is sold
Impact of Depreciation of Equipment on
financial statements - ANSWER-• Cash Flow
Statement: No cash impact (non-cash expense).
• Balance Sheet: Reduces asset value
(accumulated depreciation). • Income
Statement: Increases depreciation expense,
reducing net income
Impact of Payment of Dividends on financial
statements - ANSWER-• Cash Flow Statement:
,Financing cash outflow. • Balance Sheet:
Reduces retained earnings and cash. • Income
Statement: No impact on the income statement
Impact of Purchase of Equipment on financial
statements - ANSWER-• Cash Flow Statement:
Investing cash outflow. • Balance Sheet:
Increases fixed assets. • Income Statement: No
immediate impact on the income statement
(except depreciation in future periods)
Impact of Collection of Accounts Receivable on
financial statements - ANSWER-• Cash Flow
Statement: Operating cash inflow. • Balance
Sheet: Decreases accounts receivable and
increases cash. • Income Statement: No impact
on the income statement
, Impact of Repayment of Loan Principal on
financial statements - ANSWER-• Cash Flow
Statement: Financing cash outflow. • Balance
Sheet: Decreases liabilities (loan payable) and
cash. • Income Statement: No impact on the
income statement
Impact of Payment of Interest on Loan on
financial statements - ANSWER-• Cash Flow
Statement: Operating cash outflow. • Balance
Sheet: No balance sheet impact. • Income
Statement: Increases interest expense, reducing
net income
Impact of Sale of Fixed Assets on financial
statements - ANSWER-• Cash Flow Statement:
Investing cash inflow. • Balance Sheet:
Decreases fixed assets and may result in a gain
100% Correct Answers 2025-2026 Already
Graded A+
Impact of Sale of Goods on Credit on financial
statements - ANSWER-• Cash Flow Statement:
No immediate cash inflow (increases accounts
receivable). • Balance Sheet: Increases accounts
receivable and decreases inventory. • Income
Statement: Increases revenue and cost of goods
sold (COGS)
,Impact of Purchase of Inventory on Credit on
financial statements - ANSWER-• Cash Flow
Statement: No immediate cash outflow
(increases accounts payable). • Balance Sheet:
Increases inventory and accounts payable. •
Income Statement: No impact on the income
statement until inventory is sold
Impact of Depreciation of Equipment on
financial statements - ANSWER-• Cash Flow
Statement: No cash impact (non-cash expense).
• Balance Sheet: Reduces asset value
(accumulated depreciation). • Income
Statement: Increases depreciation expense,
reducing net income
Impact of Payment of Dividends on financial
statements - ANSWER-• Cash Flow Statement:
,Financing cash outflow. • Balance Sheet:
Reduces retained earnings and cash. • Income
Statement: No impact on the income statement
Impact of Purchase of Equipment on financial
statements - ANSWER-• Cash Flow Statement:
Investing cash outflow. • Balance Sheet:
Increases fixed assets. • Income Statement: No
immediate impact on the income statement
(except depreciation in future periods)
Impact of Collection of Accounts Receivable on
financial statements - ANSWER-• Cash Flow
Statement: Operating cash inflow. • Balance
Sheet: Decreases accounts receivable and
increases cash. • Income Statement: No impact
on the income statement
, Impact of Repayment of Loan Principal on
financial statements - ANSWER-• Cash Flow
Statement: Financing cash outflow. • Balance
Sheet: Decreases liabilities (loan payable) and
cash. • Income Statement: No impact on the
income statement
Impact of Payment of Interest on Loan on
financial statements - ANSWER-• Cash Flow
Statement: Operating cash outflow. • Balance
Sheet: No balance sheet impact. • Income
Statement: Increases interest expense, reducing
net income
Impact of Sale of Fixed Assets on financial
statements - ANSWER-• Cash Flow Statement:
Investing cash inflow. • Balance Sheet:
Decreases fixed assets and may result in a gain
