C213 WGU, KEY POINTS QUESTIONS &
VERIFIED CORRECT ANSWERS PASSED
1. Debt Ratio Total Liabilities/Total Assets
2. Current Ratio Current Assets/Current Liabilities. Only need a balance sheet.
3. Return on Sales Net Income/Sales. Only need income statement
4. Asset Turnover Sales/Total Assets
5. Return on Equity Net Income/Stockholder's equity. Balance and Income Statements used.
6. Price-Earnings Ra-
tio (PE) Market Value fo Shares/Net Income
7. Accounting is the recording of the day-to-day financial activities of a company and
the organi-
zation of that information into summary reports used to evaluate the
company's financial status.
8. Bookeeping is the preservation of a systematic, quantitative record of an activity.
Without book-
keeping, good business is impossible. An accounting system is used by
a business to handle routine bookkeeping tasks and to structure the
information so it can be used to evaluate the performance and financial
status of the business. Accounting information is intended to be useful
in making decisions about the future.
9. The focus of finan- the three primary financial statements: the balance sheet, the income
statement,
cial accounting is and the statement of cash flows.
10. Financial provided for, and used by, external users. Managerial accounting is the name
account- ing
giv- en to accounting systems designed for internal users. The
information is
information provided by financial accounting is summarized in the
financial statements:
1/
15
, C213 WGU, KEY POINTS QUESTIONS &
VERIFIED CORRECT ANSWERS PASSED
The balance sheet reports a
company's assets, liabilities,
and owners' equity.
The income statement
reports the amount of net
income earned by a
company during a period.
Net income is the excess
of a company's revenues
over its
2/
15
VERIFIED CORRECT ANSWERS PASSED
1. Debt Ratio Total Liabilities/Total Assets
2. Current Ratio Current Assets/Current Liabilities. Only need a balance sheet.
3. Return on Sales Net Income/Sales. Only need income statement
4. Asset Turnover Sales/Total Assets
5. Return on Equity Net Income/Stockholder's equity. Balance and Income Statements used.
6. Price-Earnings Ra-
tio (PE) Market Value fo Shares/Net Income
7. Accounting is the recording of the day-to-day financial activities of a company and
the organi-
zation of that information into summary reports used to evaluate the
company's financial status.
8. Bookeeping is the preservation of a systematic, quantitative record of an activity.
Without book-
keeping, good business is impossible. An accounting system is used by
a business to handle routine bookkeeping tasks and to structure the
information so it can be used to evaluate the performance and financial
status of the business. Accounting information is intended to be useful
in making decisions about the future.
9. The focus of finan- the three primary financial statements: the balance sheet, the income
statement,
cial accounting is and the statement of cash flows.
10. Financial provided for, and used by, external users. Managerial accounting is the name
account- ing
giv- en to accounting systems designed for internal users. The
information is
information provided by financial accounting is summarized in the
financial statements:
1/
15
, C213 WGU, KEY POINTS QUESTIONS &
VERIFIED CORRECT ANSWERS PASSED
The balance sheet reports a
company's assets, liabilities,
and owners' equity.
The income statement
reports the amount of net
income earned by a
company during a period.
Net income is the excess
of a company's revenues
over its
2/
15
