WGU C213 Accounting for Decision Makers
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Correct Answers | Latest Edition
1. the recording of the day-to-day financial activities of a company and the
organization of that information into summary reports used to evaluate the
company's financial status - ANSWER Accounting
2. the preservation of a systematic, quantitative record of an activity -
ANSWER Bookkeeping
3. 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 - ANSWER accounting system
4. Info that is intended to be useful in making decisions about the future. -
ANSWER Accounting information
5. Which 3 factors have combined to make right now a time of significant
change in accounting? - ANSWER 1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting scandals
6. A wave of accounting scandals starting in 2001 resulted in this act, which
increases U.S. federal government scrutiny of the production of financial
statements. - ANSWER Sarbanes-Oxley Act
,7. reports a company's financial position at a specified point in time and lists
the company's resources (assets), obligations (liabilities), and net ownership
interest (owners' equity). - ANSWER Balance Sheet
8. probable future economic benefits obtained or controlled by a company as a
result of past transactions or events - ANSWER Assets
9. probable future sacrifices of economic benefits arising from present
obligations of a company to transfer assets or provide services in the future
as a result of past transactions or events - ANSWER Liabilities
10.the residual interest in the assets of a company that remains after deducting
its liabilities - ANSWER Owners' equity
11.What is the accounting equation? - ANSWER Assets = Liabilities +
Owners' Equity
12.In what order are assets typically listed on the balance sheet? - ANSWER
By order of liquidity
13.Liabilities are divided into which 2 categories on the balance sheet? -
ANSWER Current and Long-term
14.What is the entity concept? - ANSWER states that the financial results of an
economic entity should be reported separately from the financial results of
other entities, even though all those entities may be controlled by the same
person
15.Equation to calculate net income - ANSWER (revenues-expense= net
income)
,16.According to accounting rules, when should revenue be recognized? -
ANSWER When work has been done and collectability of cash can be
reasonably assured
17.those activities that comprise the day-to-day operations of a business. -
ANSWER Operating activities
18.The purchase and sale of long-term assets such as land and equipment are
known as _______________. - ANSWER Investing activities
19.those activities through which cash is obtained from, or repaid to, creditors
and investors - ANSWER Financing activities
20.What information do the notes to accounting statements provide? -
ANSWER information on the accounting assumptions used in preparing the
statements and supplemental information not included in the statements
themselves
21.What are the 4 general types of accounting notes? - ANSWER 1. Summary
of accounting policy
2. Additional info about summary totals
3. Disclosure of info not included in summary
4. Supplemental disclosure required by FASB or SEC
22.the practice of recognizing all losses but not recognizing gains until they are
certain - ANSWER Conservatism
, 23.the concept that weighs whether a certain dollar amount is large enough to
make a difference to anyone - ANSWER Materiality
24.the idea that the three primary financial statements are interrelated -
ANSWER Articulation
25.Percentage of funds needed to purchase assets that were obtained through
borrowing - ANSWER Debt Ratio
Total Liabilities/
Total Assets
26.Measure of liquidity; number of times current assets could cover current
liabilities - ANSWER Current Ratio
Current Assets/
Current Liabilities
27.What are the three primary financial statements? - ANSWER The balance
sheet, the income statement, and the statement of cashflows
28.Who is financial accounting information primarily prepared for and used by?
- ANSWER External Users
29.the name given to accounting systems designed for internal users -
ANSWER Managerial Accounting
Actual Exam Study Questions with 100%
Correct Answers | Latest Edition
1. the recording of the day-to-day financial activities of a company and the
organization of that information into summary reports used to evaluate the
company's financial status - ANSWER Accounting
2. the preservation of a systematic, quantitative record of an activity -
ANSWER Bookkeeping
3. 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 - ANSWER accounting system
4. Info that is intended to be useful in making decisions about the future. -
ANSWER Accounting information
5. Which 3 factors have combined to make right now a time of significant
change in accounting? - ANSWER 1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting scandals
6. A wave of accounting scandals starting in 2001 resulted in this act, which
increases U.S. federal government scrutiny of the production of financial
statements. - ANSWER Sarbanes-Oxley Act
,7. reports a company's financial position at a specified point in time and lists
the company's resources (assets), obligations (liabilities), and net ownership
interest (owners' equity). - ANSWER Balance Sheet
8. probable future economic benefits obtained or controlled by a company as a
result of past transactions or events - ANSWER Assets
9. probable future sacrifices of economic benefits arising from present
obligations of a company to transfer assets or provide services in the future
as a result of past transactions or events - ANSWER Liabilities
10.the residual interest in the assets of a company that remains after deducting
its liabilities - ANSWER Owners' equity
11.What is the accounting equation? - ANSWER Assets = Liabilities +
Owners' Equity
12.In what order are assets typically listed on the balance sheet? - ANSWER
By order of liquidity
13.Liabilities are divided into which 2 categories on the balance sheet? -
ANSWER Current and Long-term
14.What is the entity concept? - ANSWER states that the financial results of an
economic entity should be reported separately from the financial results of
other entities, even though all those entities may be controlled by the same
person
15.Equation to calculate net income - ANSWER (revenues-expense= net
income)
,16.According to accounting rules, when should revenue be recognized? -
ANSWER When work has been done and collectability of cash can be
reasonably assured
17.those activities that comprise the day-to-day operations of a business. -
ANSWER Operating activities
18.The purchase and sale of long-term assets such as land and equipment are
known as _______________. - ANSWER Investing activities
19.those activities through which cash is obtained from, or repaid to, creditors
and investors - ANSWER Financing activities
20.What information do the notes to accounting statements provide? -
ANSWER information on the accounting assumptions used in preparing the
statements and supplemental information not included in the statements
themselves
21.What are the 4 general types of accounting notes? - ANSWER 1. Summary
of accounting policy
2. Additional info about summary totals
3. Disclosure of info not included in summary
4. Supplemental disclosure required by FASB or SEC
22.the practice of recognizing all losses but not recognizing gains until they are
certain - ANSWER Conservatism
, 23.the concept that weighs whether a certain dollar amount is large enough to
make a difference to anyone - ANSWER Materiality
24.the idea that the three primary financial statements are interrelated -
ANSWER Articulation
25.Percentage of funds needed to purchase assets that were obtained through
borrowing - ANSWER Debt Ratio
Total Liabilities/
Total Assets
26.Measure of liquidity; number of times current assets could cover current
liabilities - ANSWER Current Ratio
Current Assets/
Current Liabilities
27.What are the three primary financial statements? - ANSWER The balance
sheet, the income statement, and the statement of cashflows
28.Who is financial accounting information primarily prepared for and used by?
- ANSWER External Users
29.the name given to accounting systems designed for internal users -
ANSWER Managerial Accounting
