WGU C213 Accounting for Decision Makers
Exam Question and Answer (2026) | A+
Verified | Accurate Solutions
• Accounting -✓✓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 -✓✓Assets = Liabilities + Owners' Equity
• Accounts Payable -✓✓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 -✓✓Amounts owed to a business by its credit customers
and are usually collected in cash within 10 to 60 days.
• Accrual Accounting -✓✓The process that accountants use in adjusting raw
transaction data into refined measures of a firm's economic performance.
• Accumulated Depreciation -✓✓Reflects the wear and tear, or depreciation, of
these items since they were originally purchased.
• Accumulated Other Comprehensive Income -✓✓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) -✓✓A method of attributing overhead costs to
products based on measurable factors that relate to activities that create overhead
costs.
• Balance Sheet -✓✓A listing of an organization's assets and of its liabilities at a
certain time.
• Additional Paid-in Capital -✓✓Invested by stockholders that exceeds the par
value of the issued shares.
,• American Institute of Certified Public Accountants (AICPA) -✓✓The
professional organization of certified public accountants in the United States.
• Asset -✓✓Probable future economic benefit obtained or controlled by a particular
entity as a result of past transactions or events.
• Asset Mix -✓✓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 -✓✓Sales divided by assets and is interpreted as the number of
dollars in sales generated by each dollar of assets.
• Assets -✓✓Assets are 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 -✓✓Assets divided by equity and is interpreted as the
number of dollars of assets acquired for each dollar invested by stockholders.
• Audit Committee -✓✓Members of a company's board of directors who are
responsible for dealing with the external and internal auditors.
• Average Collection Period -✓✓Shows the average number of days that elapse
between sale and cash collection.
• Capital Lease Obligations -✓✓A long-term liability in the balance sheet.
• Batch-level Activities -✓✓Activities that take place in order to support a batch or
production run, regardless of the size of the batch.
• Book Value -✓✓The book value of an asset is the asset's cost minus the asset's
accumulated depreciation.
• Bookkeeping -✓✓The preservation of a systematic, quantitative record of an
activity.
• Break-even Point -✓✓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 -✓✓Systematic planning for long-term investments in
operating assets.
• Consistency -✓✓The consistency principle states that, once you adopt an
accounting principle or method, continue to follow it consistently in future
accounting periods.
• Cash -✓✓Coins and currency as well as the balances in company checking and
savings accounts.
• Cash Budget -✓✓An important tool in helping management plan its cash needs.
This discussion briefly introduces you to budgeting cash receipts.
• Cash Equivalents -✓✓Short-term, highly liquid investments such as Treasury
bills, commercial paper, and money market funds.
• Cash Flow Adequacy Ratio -✓✓Cash from operations divided by expenditures
for fixed asset additions and acquisitions of new businesses
• Cash Times Interest Earned Ratio -✓✓A financial analysis tool that indicates the
interest payment ability of an entity
• Certified Public Accountant -✓✓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 -✓✓Stockholders' equity investment
• Common-size Financial Statements -✓✓All amounts for a given year being
shown as a percentage of that denominator for the year.
• Comparability -✓✓Information that becomes much more useful when it can be
related to a benchmark or standard
• Comprehensive Income -✓✓The number used to reflect an overall measure of the
change in a company's wealth during the period
Exam Question and Answer (2026) | A+
Verified | Accurate Solutions
• Accounting -✓✓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 -✓✓Assets = Liabilities + Owners' Equity
• Accounts Payable -✓✓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 -✓✓Amounts owed to a business by its credit customers
and are usually collected in cash within 10 to 60 days.
• Accrual Accounting -✓✓The process that accountants use in adjusting raw
transaction data into refined measures of a firm's economic performance.
• Accumulated Depreciation -✓✓Reflects the wear and tear, or depreciation, of
these items since they were originally purchased.
• Accumulated Other Comprehensive Income -✓✓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) -✓✓A method of attributing overhead costs to
products based on measurable factors that relate to activities that create overhead
costs.
• Balance Sheet -✓✓A listing of an organization's assets and of its liabilities at a
certain time.
• Additional Paid-in Capital -✓✓Invested by stockholders that exceeds the par
value of the issued shares.
,• American Institute of Certified Public Accountants (AICPA) -✓✓The
professional organization of certified public accountants in the United States.
• Asset -✓✓Probable future economic benefit obtained or controlled by a particular
entity as a result of past transactions or events.
• Asset Mix -✓✓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 -✓✓Sales divided by assets and is interpreted as the number of
dollars in sales generated by each dollar of assets.
• Assets -✓✓Assets are 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 -✓✓Assets divided by equity and is interpreted as the
number of dollars of assets acquired for each dollar invested by stockholders.
• Audit Committee -✓✓Members of a company's board of directors who are
responsible for dealing with the external and internal auditors.
• Average Collection Period -✓✓Shows the average number of days that elapse
between sale and cash collection.
• Capital Lease Obligations -✓✓A long-term liability in the balance sheet.
• Batch-level Activities -✓✓Activities that take place in order to support a batch or
production run, regardless of the size of the batch.
• Book Value -✓✓The book value of an asset is the asset's cost minus the asset's
accumulated depreciation.
• Bookkeeping -✓✓The preservation of a systematic, quantitative record of an
activity.
• Break-even Point -✓✓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 -✓✓Systematic planning for long-term investments in
operating assets.
• Consistency -✓✓The consistency principle states that, once you adopt an
accounting principle or method, continue to follow it consistently in future
accounting periods.
• Cash -✓✓Coins and currency as well as the balances in company checking and
savings accounts.
• Cash Budget -✓✓An important tool in helping management plan its cash needs.
This discussion briefly introduces you to budgeting cash receipts.
• Cash Equivalents -✓✓Short-term, highly liquid investments such as Treasury
bills, commercial paper, and money market funds.
• Cash Flow Adequacy Ratio -✓✓Cash from operations divided by expenditures
for fixed asset additions and acquisitions of new businesses
• Cash Times Interest Earned Ratio -✓✓A financial analysis tool that indicates the
interest payment ability of an entity
• Certified Public Accountant -✓✓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 -✓✓Stockholders' equity investment
• Common-size Financial Statements -✓✓All amounts for a given year being
shown as a percentage of that denominator for the year.
• Comparability -✓✓Information that becomes much more useful when it can be
related to a benchmark or standard
• Comprehensive Income -✓✓The number used to reflect an overall measure of the
change in a company's wealth during the period
