WGU C216 BUSINESS INTEGRATION
CERTIFICATION STUDY GUIDE TASK TWO
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ Matching Principle. Answer: Accrual accounting principle to match
revenues and expenses in the same period
⩥ Historical cost principle. Answer: Accrual accounting principle to
recorded assets, liabilities, and equity at historical levels. When an asset
is purchased or liability incurred, it is recorded at cost.
⩥ Accumulated depreciation. Answer: The total amount of depreciation
claimed against the fixed assets of the firm.
⩥ Marketable Securities. Answer: Short-term, high quality securities
such as US Treasury Bills and certificates of deposits (CDs)
⩥ Accounts Receivable. Answer: The balance in AR represents cash not
yet collected from customers on goods previously sold.
⩥ Inventories. Answer: Least liquid current asset. Include, WIP and
finished goods.
,⩥ Fixed Assets. Answer: Provide benefit to the firm for more than one
year and are usually recorded on the balance sheet at historical cost.
(Typically PP&E)
⩥ Gross PP&E. Answer: Original cost of all non-current assets held for
use. Offset by accumulated depreciation
⩥ Book value. Answer: The accounting value recorded on the balance
sheet.
⩥ Net PP&E. Answer: Gross PP&E minus accumulated depreciation.
⩥ Current Liablities. Answer: Obligations that require cash in the next
year and listed in order of maturity.
⩥ Accounts Payable. Answer: Money owed to suppliers as a result of
purchases made on credit.
⩥ Notes Payable. Answer: Involves explicit interest-bearing
arrangement with a lender
⩥ Accurals. Answer: Expenses incurred by not yet paid.
, ⩥ Accrued wages. Answer: Wages that the company owes to employees,
but has not paid yet.
⩥ Long-Term Liabilities. Answer: Debt obligations with maturity longer
than one year.Can be significantly different than market value.
⩥ Equity. Answer: Includes common stock, additional paid in capital
and retained earnings.
⩥ Common stock. Answer: Equity sold to common share holders at par
value. Last in line to receive money back in the event of bankruptcy.
⩥ Retained earnings. Answer: Cumulative total of earnings not paid out
as dividends to stockholders over the entire history of the entity.
⩥ RE Forcasting. Answer: Change in the RE account from year to year.
New RE =Old RE + Change In RE
⩥ Operating Income Return on Investment (OIROI). Answer: The
relationship between operating profit (EBIT) and the company's asset
base. How much pre-tax, pre-financing profit the company generates per
dollar of assets
⩥ Debt Ratio. Answer: Proportion of the firm's assets financed with
debt.
CERTIFICATION STUDY GUIDE TASK TWO
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ Matching Principle. Answer: Accrual accounting principle to match
revenues and expenses in the same period
⩥ Historical cost principle. Answer: Accrual accounting principle to
recorded assets, liabilities, and equity at historical levels. When an asset
is purchased or liability incurred, it is recorded at cost.
⩥ Accumulated depreciation. Answer: The total amount of depreciation
claimed against the fixed assets of the firm.
⩥ Marketable Securities. Answer: Short-term, high quality securities
such as US Treasury Bills and certificates of deposits (CDs)
⩥ Accounts Receivable. Answer: The balance in AR represents cash not
yet collected from customers on goods previously sold.
⩥ Inventories. Answer: Least liquid current asset. Include, WIP and
finished goods.
,⩥ Fixed Assets. Answer: Provide benefit to the firm for more than one
year and are usually recorded on the balance sheet at historical cost.
(Typically PP&E)
⩥ Gross PP&E. Answer: Original cost of all non-current assets held for
use. Offset by accumulated depreciation
⩥ Book value. Answer: The accounting value recorded on the balance
sheet.
⩥ Net PP&E. Answer: Gross PP&E minus accumulated depreciation.
⩥ Current Liablities. Answer: Obligations that require cash in the next
year and listed in order of maturity.
⩥ Accounts Payable. Answer: Money owed to suppliers as a result of
purchases made on credit.
⩥ Notes Payable. Answer: Involves explicit interest-bearing
arrangement with a lender
⩥ Accurals. Answer: Expenses incurred by not yet paid.
, ⩥ Accrued wages. Answer: Wages that the company owes to employees,
but has not paid yet.
⩥ Long-Term Liabilities. Answer: Debt obligations with maturity longer
than one year.Can be significantly different than market value.
⩥ Equity. Answer: Includes common stock, additional paid in capital
and retained earnings.
⩥ Common stock. Answer: Equity sold to common share holders at par
value. Last in line to receive money back in the event of bankruptcy.
⩥ Retained earnings. Answer: Cumulative total of earnings not paid out
as dividends to stockholders over the entire history of the entity.
⩥ RE Forcasting. Answer: Change in the RE account from year to year.
New RE =Old RE + Change In RE
⩥ Operating Income Return on Investment (OIROI). Answer: The
relationship between operating profit (EBIT) and the company's asset
base. How much pre-tax, pre-financing profit the company generates per
dollar of assets
⩥ Debt Ratio. Answer: Proportion of the firm's assets financed with
debt.
