WGU D102 FINANCIAL ACCOUNTING EXAM WITH GUARANTED ACCURATE ANSWERS
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Course
WGU D102 FINANCIAL ACCOUNTING
Institution
WGU D102 FINANCIAL ACCOUNTING
Account - ACCURATE ANSWERS An accounting record in which the results of transactions are accumulated; shows increases, decreases, and a balance
Accounts Receivable - ACCURATE ANSWERS A current asset representing money due for services performed or merchandise sold on credit
On August 1 of Yea...
WGU D102 FINANCIAL ACCOUNTING
EXAM
WGU D102 FINANCIAL ACCOUNTING EXAM WITH GUARANTED ACCURATE
ANSWERS
Account - ACCURATE ANSWERS✔✔ An accounting record in which
the results of transactions are accumulated; shows increases, decreases,
and a balance
Accounts Receivable - ACCURATE 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? - ACCURATE 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? - ACCURATE 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? - ACCURATE 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? - ACCURATE ANSWERS✔✔ Cost of
goods sold
Revenues: Credit or Debit on the book? - ACCURATE ANSWERS✔✔
Credits; they represent increases of equity
Expenses and Dividends: Credit or Debit on the books? - ACCURATE
ANSWERS✔✔ Debits; they represent decreases in equity
Steps to closing Entries: - ACCURATE 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
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