WGU C213 OBJECTIVE ASSESSMENT
ACCOUNTING FOR DECISION
MAKERS COMPLETE EXAM
QUESTIONS WITH CORRECT
SOLUTIONS||100% GUARANTEED
PASS|| A+ GRADED||UPDATED
2026/2027 SYLLABUS||<<NEWEST
VERSION>>
What does accounting focus on? - ANSWER ✓ The impact a business's activities
have on it's overall financial performance
In preparing a statement of cash flows, sale of treasury stock at an amount greater
than cost would be classified as a(n)
a. investing activity.
b. transfer activity.
c. financing activity.
d. operating activity - ANSWER ✓ c. financing activity.
In a statement of cash flows using the direct method, which of the following
would increase reported cash flows from operating activities?
a. Gain on sale of a business segment
b. Dividends received from investments
c. Sale of treasury stock
d. Gain on sale of equipment - ANSWER ✓ b. Dividends received from
investments
Which benefit does a corporation gain by following Generally Accepted
Accounting Principals (GAAP)? - ANSWER ✓ An increase in its comparability to
other companies
,What two items of information are revealed on the balance sheet? - ANSWER ✓
Debt, Ownership
aAssuming the company uses US GAAP standards, what is the total cash flow
from financing activities? - ANSWER ✓ 145000
In a statement of cash flows, proceeds from issuing equity instruments should be
classified as cash inflows from
a. investing activities.
b. brokerage activities.
c. operating activities.
d. financing activities. - ANSWER ✓ d. financing activities.
A loss on the sale of machinery in the ordinary course of business should be
presented in a statement of cash flows (indirect method) as
a. an inflow and outflow of cash.
b. a deduction from net income.
c. an outflow of cash.
d. an addition to net income. - ANSWER ✓ d. an addition to net income.
Cash equivalents would not include short-term investments in
a. commercial paper.
b. money market funds.
c. certificates of deposit.
d. available-for-sale securities. - ANSWER ✓ d. available-for-sale securities.
Jurgens Corporation purchased a 3-month U.S. Treasury bill. In preparing Jurgens'
statement of cash flows, this purchase would
a. be treated as an outflow from investing activities.
b. have no effect.
c. be treated as an outflow from financing activities.
d. be treated as an outflow from operating activities. - ANSWER ✓ b. have no
effect.
Why is cash paid for dividends sometimes added to the denominator of the cash
flow adequacy ratio?
a. This will allow the ratio to indicate whether operating cash flow is sufficient to
pay only capital additions.
b. This will assist the board of directors in determining future stock dividends.
, c. This will allow the ratio to indicate whether operating cash flow is sufficient to
pay both capital additions and regular dividends to stockholders.
d. This will allow the ratio to indicate whether operating cash flow is sufficient to
pay only regular dividends to stockholders. - ANSWER ✓ c. This will allow the
ratio to indicate whether operating cash flow is sufficient to pay both capital
additions and regular dividends to stockholders.
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time? - ANSWER ✓ Statement
of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits? - ANSWER ✓ Employees
How is the cash flow adequacy ratio calculated?
a. Cash from operations divided by net sales
b. Cash from operations divided by net income
c. Cash from operations divided by cash paid for interest
d. Cash from operations divided by expenditures for fixed asset additions and
acquisitions of new businesses - ANSWER ✓ d. Cash from operations divided by
expenditures for fixed asset additions and acquisitions of new businesses
In accounting, what does articulation mean?
a. It means that the three primary financial statements are not isolated lists of
numbers but are an integrated set of reports on a company's financial health.
b. It means never having to correct journal entries.
c. It means that revenues are matched with the expenses for the same period.
d. It means adding a reconciliation of all calculations to the financial statements -
ANSWER ✓ a. It means that the three primary financial statements are not
isolated lists of numbers but are an integrated set of reports on a company's
financial health.
According to the text, which financial statement can be viewed as the mother of
all financial statements?
a. The Balance Sheet
b. The Statement of Cash Flows
c. The Income Statement
d. The Pro Forma Cash Flow Statement - ANSWER ✓ a. The Balance Sheet
, If bank loans are projected to increase from $300 to $500, the difference will
represent what in the forecasted statement of cash flows?
a. An inflow from operating activities
b. An inflow from financing activities
c. A deduction from net income in the operating activities section, if the indirect
method is used.
d. An inflow from investing activities - ANSWER ✓ b. An inflow from financing
activities
Because Wendell Company is expected to have net income of $46 in 2013 and
expects to pay $6 forecasted cash dividends, what is the change in Retained
Earnings?
a. A net decrease of $6.
b. A net increase of $52.
c. A net decrease of $52.
d. A net increase of $40. - ANSWER ✓ d. A net increase of $40.
Investments in equity securities are disclosed as current assets on a company's
balance sheet if
a. Management intends to sell them within a year and they have a ready market
exists.
b. The fair market value cannot be determined.
c. Management intends to convert them into common stock within one year.
d.Management owns less than 50% of the outstanding stock. - ANSWER ✓ a.
Management intends to sell them within a year and they have a ready market
exists.
Net cash provided (used) by operating activities − net cash used in acquiring
property, plant,and equipment − cash dividends paid is the calculation for
a. Free cash flow
b.Cash flow f rom investing activities
c.Working capital
d.Current ratio - ANSWER ✓ a. Free cash flow
A firm's ability to obtain cash for business operations change is the definition of
a. Liquidity
b. Solvency
ACCOUNTING FOR DECISION
MAKERS COMPLETE EXAM
QUESTIONS WITH CORRECT
SOLUTIONS||100% GUARANTEED
PASS|| A+ GRADED||UPDATED
2026/2027 SYLLABUS||<<NEWEST
VERSION>>
What does accounting focus on? - ANSWER ✓ The impact a business's activities
have on it's overall financial performance
In preparing a statement of cash flows, sale of treasury stock at an amount greater
than cost would be classified as a(n)
a. investing activity.
b. transfer activity.
c. financing activity.
d. operating activity - ANSWER ✓ c. financing activity.
In a statement of cash flows using the direct method, which of the following
would increase reported cash flows from operating activities?
a. Gain on sale of a business segment
b. Dividends received from investments
c. Sale of treasury stock
d. Gain on sale of equipment - ANSWER ✓ b. Dividends received from
investments
Which benefit does a corporation gain by following Generally Accepted
Accounting Principals (GAAP)? - ANSWER ✓ An increase in its comparability to
other companies
,What two items of information are revealed on the balance sheet? - ANSWER ✓
Debt, Ownership
aAssuming the company uses US GAAP standards, what is the total cash flow
from financing activities? - ANSWER ✓ 145000
In a statement of cash flows, proceeds from issuing equity instruments should be
classified as cash inflows from
a. investing activities.
b. brokerage activities.
c. operating activities.
d. financing activities. - ANSWER ✓ d. financing activities.
A loss on the sale of machinery in the ordinary course of business should be
presented in a statement of cash flows (indirect method) as
a. an inflow and outflow of cash.
b. a deduction from net income.
c. an outflow of cash.
d. an addition to net income. - ANSWER ✓ d. an addition to net income.
Cash equivalents would not include short-term investments in
a. commercial paper.
b. money market funds.
c. certificates of deposit.
d. available-for-sale securities. - ANSWER ✓ d. available-for-sale securities.
Jurgens Corporation purchased a 3-month U.S. Treasury bill. In preparing Jurgens'
statement of cash flows, this purchase would
a. be treated as an outflow from investing activities.
b. have no effect.
c. be treated as an outflow from financing activities.
d. be treated as an outflow from operating activities. - ANSWER ✓ b. have no
effect.
Why is cash paid for dividends sometimes added to the denominator of the cash
flow adequacy ratio?
a. This will allow the ratio to indicate whether operating cash flow is sufficient to
pay only capital additions.
b. This will assist the board of directors in determining future stock dividends.
, c. This will allow the ratio to indicate whether operating cash flow is sufficient to
pay both capital additions and regular dividends to stockholders.
d. This will allow the ratio to indicate whether operating cash flow is sufficient to
pay only regular dividends to stockholders. - ANSWER ✓ c. This will allow the
ratio to indicate whether operating cash flow is sufficient to pay both capital
additions and regular dividends to stockholders.
Which report summarizes cash collections and cash expenditures from operating,
investing, and financing activities over a period of time? - ANSWER ✓ Statement
of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits? - ANSWER ✓ Employees
How is the cash flow adequacy ratio calculated?
a. Cash from operations divided by net sales
b. Cash from operations divided by net income
c. Cash from operations divided by cash paid for interest
d. Cash from operations divided by expenditures for fixed asset additions and
acquisitions of new businesses - ANSWER ✓ d. Cash from operations divided by
expenditures for fixed asset additions and acquisitions of new businesses
In accounting, what does articulation mean?
a. It means that the three primary financial statements are not isolated lists of
numbers but are an integrated set of reports on a company's financial health.
b. It means never having to correct journal entries.
c. It means that revenues are matched with the expenses for the same period.
d. It means adding a reconciliation of all calculations to the financial statements -
ANSWER ✓ a. It means that the three primary financial statements are not
isolated lists of numbers but are an integrated set of reports on a company's
financial health.
According to the text, which financial statement can be viewed as the mother of
all financial statements?
a. The Balance Sheet
b. The Statement of Cash Flows
c. The Income Statement
d. The Pro Forma Cash Flow Statement - ANSWER ✓ a. The Balance Sheet
, If bank loans are projected to increase from $300 to $500, the difference will
represent what in the forecasted statement of cash flows?
a. An inflow from operating activities
b. An inflow from financing activities
c. A deduction from net income in the operating activities section, if the indirect
method is used.
d. An inflow from investing activities - ANSWER ✓ b. An inflow from financing
activities
Because Wendell Company is expected to have net income of $46 in 2013 and
expects to pay $6 forecasted cash dividends, what is the change in Retained
Earnings?
a. A net decrease of $6.
b. A net increase of $52.
c. A net decrease of $52.
d. A net increase of $40. - ANSWER ✓ d. A net increase of $40.
Investments in equity securities are disclosed as current assets on a company's
balance sheet if
a. Management intends to sell them within a year and they have a ready market
exists.
b. The fair market value cannot be determined.
c. Management intends to convert them into common stock within one year.
d.Management owns less than 50% of the outstanding stock. - ANSWER ✓ a.
Management intends to sell them within a year and they have a ready market
exists.
Net cash provided (used) by operating activities − net cash used in acquiring
property, plant,and equipment − cash dividends paid is the calculation for
a. Free cash flow
b.Cash flow f rom investing activities
c.Working capital
d.Current ratio - ANSWER ✓ a. Free cash flow
A firm's ability to obtain cash for business operations change is the definition of
a. Liquidity
b. Solvency
