WGU D102 ACCT 2313 Financial Accounting OA (Qns & Ans) 2026

WGU D102 ACCT 2313 Financial Accounting OA (Qns & Ans) 2026

1. Which of the following methods of inventory valuation can
lead to the possibility of "inventory profits"?
 - A) FIFO
 - B) LIFO
 - C) Weighted Average Cost
 - D) Specific Identification
 ANS: B) LIFO
 Rationale: LIFO (Last-In, First-Out) can lead to "inventory
profits" in times of rising prices because older, cheaper costs
remain in inventory.
2. What is the primary purpose of consolidating financial
statements of a parent and its subsidiary?
 - A) To enhance the parent company's balance sheet
 - B) To reduce tax liabilities
 - C) To present the financial performance and position as a
single economic entity
 - D) To simplify financial reporting