INTERMEDIATE ACCOUNTING 1 WGU EXAM

INTERMEDIATE ACCOUNTING 1 – WGU EXAM

QUESTIONS AND 100% CORRECT

ANSWERS|LATEST 2025/2026 |GRADED A+

WhichBtwoBfactorsBdoBinvestorsBconsiderBwhenBtheyBanalyzeBanBentity'sBfinancialBreports?B- BANSWER- A)BTheBcompany'sBabilityBtoBgenerateBnetBcashBinflowsB B)BManagement'sBabilityBtoBprotectBandBenhanceBinvestedBcapital

WhichBtwoBstatementsBconveyBtheBmeaningBofB"generallyBaccepted"BwithinBtheBcontextBofBgene rallyBacceptedBaccountingBprinciplesB(GAAP)?B-BANSWER- AnBauthoritativeBaccountingBbodyBhasBestablishedBprinciplesBinBaBspecificBarea.B ABstandardBbehaviorBisBuniversallyBpracticedBinBaBspecificBarea.

NRVBCeilingB(what'sBtheBformula)B-BANSWER- NetBSalesB- BCostBtoBCompleteBforBSaleB=BNRVBCeiling

NPMB=BNormalBProfitBMarginB(what'sBtheBformula)B-BANSWER- =BNRVB*BNPM% B=BProfitBMargin

NRVBFloorB(what'sBtheBformula)B-BANSWER- FloorB=BNRVB-BProfitBMargin

EstimatedBvalueBofBinventoryBformulaB-BANSWER- =BBeginningBInventoryB+BY2DBPurchasesB-BCOGSB

COGSB=BSalesB(100%)B-BGrossBProfitB%B=B%B =BegBInvB+Y2DBPurchasesB-BCOGS%

DecliningBbalB-BANSWER- =100/yrsBofBlifeB=B___B*B=B__% BegBBalanceB*B%B=

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WhatBcanBinvestorsBassessBbyBreviewingBinformationBinBtheBbalanceBsheet,BincomeBstatement,Bs tatementBofBowners'Bequity,BandBstatementBofBcashBflows?B-BANSWER- TheBamount,Btiming,BandBuncertaintyBofBcashBflows

WhatBroleBdoesBtheBSecuritiesBandBExchangeBCommissionB(SEC)BhaveBinBsettingBaccountingBstan dards?B-BANSWER- ensureBtheBreliabilityBofBfinancialBstatementsBissuedBbyBpublicBcompanies.

HowBmanyBofBtheBsevenBFinancialBAccountingBStandardsBBoardB(FASB)BmembersBmustBsupportB aBnewBaccountingBstandardBupdate?B-BANSWER- 4

WhichBtwoBstatementsBaboutBtheBStatementsBofBFinancialBAccountingBConceptsBdevelopedBbyBt heBFinancialBAccountingBStandardsBBoardB(FASB)BareBcorrect?

A)BTheyBwereBdevelopedBtoBcreateBaBconceptualBframeworkBforBfinancialBreporting.B)BTheyBgoBthroughBaBdifferentBprocessBfromBstandardsBstatementsBpriorBtoBissuance.C)BTheyBprovideBaBbasisBforBdeterminingBfutureBaccountingBandBreportingBstandards.D)BTheyBestablishBgenerallyBacceptedBaccountingBprinciplesB(GAAP).B-BANSWER- AB&BCB TheyBwereBdevelopedBtoBcreateBaBconceptualBframeworkBforBfinancialBreporting.TheyBprovideBaBbasisBforBdeterminingBfutureBaccountingBandBreportingBstandards

WhatBisBtheBpurposeBofBgenerallyBacceptedBaccountingBprinciplesB(GAAP)?B-BANSWER- ToBprovideBallBauthoritativeBliteratureBorBsupportBrelatedBtoBaBspecificBtopic

WhatBareBtwoBelementsBofBtheBFinancialBAccountingBStandardsBBoardB(FASB)BCodificationBfram ework?

A)BChapters B)BSections C)BClassifications 2 / 3

D)BTopicsB-BANSWER- BB&BDB SectionsB&BTopics

FinancialBStatementBElementB-BAssetsB-BANSWER- ProbableBfutureBeconomicBbenefitsBobtainedBasBaBresultBofBpastBtransactionsBorBevents

FinancialBStatementBElementB-BDistributionsBtoBOwnersB-BANSWER- DecreasesBinBnetBassetsBofBanBentityBresultingBfromBtransferringBassets,BrenderingBservic es,BorBincurringBliabilitiesBbyBtheBenterpriseBtoBowners

FinancialBStatementBElementB-BExpensesB-BANSWER- UseBofBassetsBand/orBincurrencesBofBliabilitiesBduringBaBperiodBinBwhichBservicesBareBrend ered

FinancialBStatementBElementB-BGainsB-BANSWER- IncreasesBinBnetBassetsBfromBtransactionsBofBanBentity,BotherBthanBthoseBthatBresultBfromB revenuesBorBinvestmentsBbyBowners

UnderBwhichBbasicBaccountingBprincipleBdoBcompaniesBtypicallyBuseBhistoricalBcostBandBfairBvalu eBasBbaseBvalues?

A)BMeasurement B)BRevenueBrecognition C)BExpenseBrecognition D)BFullBdisclosureB-BANSWER- AB=BMeasurement

WhatBareBtwoBsimilaritiesBbetweenBgenerallyBacceptedBaccountingBprinciplesB(U.S.BGAAP)BandBI nternationalBFinancialBReportingBStandardsB(IFRS)?

A)BTheyBuseBaBmonetaryBunitBassumption.

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