WGU C213 Accounting Concepts|
Financial Accounting Exam Revision
Notes|Exam Study Notes with
Answers,2026.
Accounting - CORRECT ANSWER -A system of providing "quantitative information,
primarily financial in nature, about economic entities that is intended to be useful in
making economic decisions.""
"Accounting Equation - CORRECT ANSWER -Assets = Liabilities + Owners'
Equity"
"Accounts Payable - CORRECT ANSWER -The flip side of accounts
receivable—when one company sells on credit, creating for itself an account
receivable, the company on the other side of the transaction is buying on credit,
creating an account payable."
"Accounts Receivable - CORRECT ANSWER -Amounts owed to a business by its
credit customers and are usually collected in cash within 10 to 60 days."
"Accrual Accounting - CORRECT ANSWER -The process that accountants use in
adjusting raw transaction data into refined measures of a firm's economic
performance."
"Accumulated Depreciation - CORRECT ANSWER -Reflects the wear and tear, or
depreciation, of these items since they were originally purchased."
"Accumulated Other Comprehensive Income - CORRECT ANSWER -The
grouped together and reported changes which companies experience increases and
decreases in equity each year because of the movement of market prices or
exchange rates"
"Activity-based Costing (ABC) - CORRECT ANSWER -A method of attributing
overhead costs to products based on measurable factors that relate to activities that
create overhead costs."
"Additional Paid-in Capital - CORRECT ANSWER -Invested by stockholders that
exceeds the par value of the issued shares."
,"American Institute of Certified Public Accountants (AICPA) - CORRECT
ANSWER -The professional organization of certified public accountants in the United
States."
"Asset - CORRECT ANSWER -Probable future economic benefit obtained or
controlled by a particular entity as a result of past transactions or events."
"Asset Mix - CORRECT ANSWER -The proportion of total assets in each asset
category, is determined to a large degree by the industry in which the company
operates."
"Asset Turnover - CORRECT ANSWER -Sales divided by assets and is interpreted
as the number of dollars in sales generated by each dollar of assets."
"Assets - CORRECT ANSWER -The firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a particular entity as a
result of past transactions or events"
"Assets-to-equity Ratio - CORRECT ANSWER -Assets divided by equity and is
interpreted as the number of dollars of assets acquired for each dollar invested by
stockholders."
"Audit Committee - CORRECT ANSWER -Members of a company's board of
directors who are responsible for dealing with the external and internal auditors."
"Average Collection Period - CORRECT ANSWER -Shows the average number of
days that elapse between sale and cash collection."
"Balance Sheet - CORRECT ANSWER -A listing of an organization's assets and of
its liabilities at a certain time."
"Batch-level Activities - CORRECT ANSWER -Activities that take place in order to
support a batch or production run, regardless of the size of the batch."
"Book Value - CORRECT ANSWER -The book value of an asset is the asset's cost
minus the asset's accumulated depreciation."
"Bookkeeping - CORRECT ANSWER -The preservation of a systematic,
quantitative record of an activity."
"Breakeven Point - CORRECT ANSWER -The amount of sales at which total costs
of the number of units sold equal total revenues; the point at which there is no profit
or loss."
, "Capital Budgeting - CORRECT ANSWER -Systematic planning for long-term
investments in operating assets."
"Capital Lease Obligations - CORRECT ANSWER -A long-term liability in the
balance sheet."
"Cash - CORRECT ANSWER -Coins and currency as well as the balances in
company checking and savings accounts."
"Cash Budget - CORRECT ANSWER -An important tool in helping management
plan its cash needs. This discussion briefly introduces you to budgeting cash
receipts."
"Cash Equivalents - CORRECT ANSWER -Short-term, highly liquid investments
such as Treasury bills, commercial paper, and money market funds."
"Cash Flow Adequacy Ratio - CORRECT ANSWER -Cash from operations divided
by expenditures for fixed asset additions and acquisitions of new businesses"
"Cash Times Interest Earned Ratio - CORRECT ANSWER -A financial analysis
tool that indicates the interest payment ability of an entity"
"Certified Public Accountant - CORRECT ANSWER -A person who has taken a
minimum number of college-level accounting classes, has passed the dreaded CPA
exam, and has met other requirements set by his or her state."
"Common Stock - CORRECT ANSWER -Stockholders' equity investment"
"Common-size Financial Statements - CORRECT ANSWER -All amounts for a
given year being shown as a percentage of that denominator for the year."
"Comparability - CORRECT ANSWER -Tnformation that becomes much more
useful when it can be related to a benchmark or standard"
"Comprehensive Income - CORRECT ANSWER -The number used to reflect an
overall measure of the change in a company's wealth during the period"
"Conservatism - CORRECT ANSWER -a pervasive factor in accounting, can be
summarized as follows: When in doubt, recognize all losses but don't recognize any
gains."
"Consistency Principle - CORRECT ANSWER -What principle states that once you
adopt an accounting principle or method, continue to follow it consistently in future
accounting periods?"
Financial Accounting Exam Revision
Notes|Exam Study Notes with
Answers,2026.
Accounting - CORRECT ANSWER -A system of providing "quantitative information,
primarily financial in nature, about economic entities that is intended to be useful in
making economic decisions.""
"Accounting Equation - CORRECT ANSWER -Assets = Liabilities + Owners'
Equity"
"Accounts Payable - CORRECT ANSWER -The flip side of accounts
receivable—when one company sells on credit, creating for itself an account
receivable, the company on the other side of the transaction is buying on credit,
creating an account payable."
"Accounts Receivable - CORRECT ANSWER -Amounts owed to a business by its
credit customers and are usually collected in cash within 10 to 60 days."
"Accrual Accounting - CORRECT ANSWER -The process that accountants use in
adjusting raw transaction data into refined measures of a firm's economic
performance."
"Accumulated Depreciation - CORRECT ANSWER -Reflects the wear and tear, or
depreciation, of these items since they were originally purchased."
"Accumulated Other Comprehensive Income - CORRECT ANSWER -The
grouped together and reported changes which companies experience increases and
decreases in equity each year because of the movement of market prices or
exchange rates"
"Activity-based Costing (ABC) - CORRECT ANSWER -A method of attributing
overhead costs to products based on measurable factors that relate to activities that
create overhead costs."
"Additional Paid-in Capital - CORRECT ANSWER -Invested by stockholders that
exceeds the par value of the issued shares."
,"American Institute of Certified Public Accountants (AICPA) - CORRECT
ANSWER -The professional organization of certified public accountants in the United
States."
"Asset - CORRECT ANSWER -Probable future economic benefit obtained or
controlled by a particular entity as a result of past transactions or events."
"Asset Mix - CORRECT ANSWER -The proportion of total assets in each asset
category, is determined to a large degree by the industry in which the company
operates."
"Asset Turnover - CORRECT ANSWER -Sales divided by assets and is interpreted
as the number of dollars in sales generated by each dollar of assets."
"Assets - CORRECT ANSWER -The firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a particular entity as a
result of past transactions or events"
"Assets-to-equity Ratio - CORRECT ANSWER -Assets divided by equity and is
interpreted as the number of dollars of assets acquired for each dollar invested by
stockholders."
"Audit Committee - CORRECT ANSWER -Members of a company's board of
directors who are responsible for dealing with the external and internal auditors."
"Average Collection Period - CORRECT ANSWER -Shows the average number of
days that elapse between sale and cash collection."
"Balance Sheet - CORRECT ANSWER -A listing of an organization's assets and of
its liabilities at a certain time."
"Batch-level Activities - CORRECT ANSWER -Activities that take place in order to
support a batch or production run, regardless of the size of the batch."
"Book Value - CORRECT ANSWER -The book value of an asset is the asset's cost
minus the asset's accumulated depreciation."
"Bookkeeping - CORRECT ANSWER -The preservation of a systematic,
quantitative record of an activity."
"Breakeven Point - CORRECT ANSWER -The amount of sales at which total costs
of the number of units sold equal total revenues; the point at which there is no profit
or loss."
, "Capital Budgeting - CORRECT ANSWER -Systematic planning for long-term
investments in operating assets."
"Capital Lease Obligations - CORRECT ANSWER -A long-term liability in the
balance sheet."
"Cash - CORRECT ANSWER -Coins and currency as well as the balances in
company checking and savings accounts."
"Cash Budget - CORRECT ANSWER -An important tool in helping management
plan its cash needs. This discussion briefly introduces you to budgeting cash
receipts."
"Cash Equivalents - CORRECT ANSWER -Short-term, highly liquid investments
such as Treasury bills, commercial paper, and money market funds."
"Cash Flow Adequacy Ratio - CORRECT ANSWER -Cash from operations divided
by expenditures for fixed asset additions and acquisitions of new businesses"
"Cash Times Interest Earned Ratio - CORRECT ANSWER -A financial analysis
tool that indicates the interest payment ability of an entity"
"Certified Public Accountant - CORRECT ANSWER -A person who has taken a
minimum number of college-level accounting classes, has passed the dreaded CPA
exam, and has met other requirements set by his or her state."
"Common Stock - CORRECT ANSWER -Stockholders' equity investment"
"Common-size Financial Statements - CORRECT ANSWER -All amounts for a
given year being shown as a percentage of that denominator for the year."
"Comparability - CORRECT ANSWER -Tnformation that becomes much more
useful when it can be related to a benchmark or standard"
"Comprehensive Income - CORRECT ANSWER -The number used to reflect an
overall measure of the change in a company's wealth during the period"
"Conservatism - CORRECT ANSWER -a pervasive factor in accounting, can be
summarized as follows: When in doubt, recognize all losses but don't recognize any
gains."
"Consistency Principle - CORRECT ANSWER -What principle states that once you
adopt an accounting principle or method, continue to follow it consistently in future
accounting periods?"
