WGU C213 ACCOUNTING FOR DECISION
MAKERS REVISION HANDBOOK 2026
FINANCIAL REPORTING AND MANAGERIAL
ACCOUNTING TOOLS
◉ Long-term investments.
Answer: investments in stock or bonds of another company that the
company does not plan to sell within 12 months
◉ Property, plant, and equipment (PP&E).
Answer: Land, buildings, machinery, and tools.
◉ intangible assets.
Answer: assets that have to physical or tangible characteristics
(patents, copyrights, and trademarks)
◉ Current Liabilities.
Answer: liabilities due within a short time, usually within the next
12 months
◉ Accounts Payable.
,Answer: Amounts to be paid in the future for goods or services
already acquired
◉ Accrued Liabilities.
Answer: Expenses that the company has incurred by year end but
are unpaid. (interest payable, wages/salary)
◉ short-term notes payable.
Answer: Principal owed to bank or other lenders that are due within
12 months
◉ long-term liabilities.
Answer: Not due within the next 12 months
◉ retained earnings.
Answer: cumulative amount of a corporations profits that have been
reinvested.
◉ Residual interest.
Answer: owners equity
◉ Income Statement Equation.
Answer: Revenues - Expenses = Net Income
, ◉ single step income statement.
Answer: all revenues are grouped together, all expenses are grouped
together, and net income is computed as the difference between
total revenues and total expenses. Note that income tax expense is
shown separately, to emphasize the fact that the amount of income
tax expense depends on the amount of income before taxes.
◉ multi step income statement.
Answer: includes multiple sub-totals (gross profit, operating income,
income from continuing operations, net income)
◉ sales revenue.
Answer: cash and credit sales to customers
◉ cost of goods sold (cogs).
Answer: cost of goods sold to customers (expense)
◉ COGS equation.
Answer: beginning inventory + purchases - ending inventory
◉ gross profit.
MAKERS REVISION HANDBOOK 2026
FINANCIAL REPORTING AND MANAGERIAL
ACCOUNTING TOOLS
◉ Long-term investments.
Answer: investments in stock or bonds of another company that the
company does not plan to sell within 12 months
◉ Property, plant, and equipment (PP&E).
Answer: Land, buildings, machinery, and tools.
◉ intangible assets.
Answer: assets that have to physical or tangible characteristics
(patents, copyrights, and trademarks)
◉ Current Liabilities.
Answer: liabilities due within a short time, usually within the next
12 months
◉ Accounts Payable.
,Answer: Amounts to be paid in the future for goods or services
already acquired
◉ Accrued Liabilities.
Answer: Expenses that the company has incurred by year end but
are unpaid. (interest payable, wages/salary)
◉ short-term notes payable.
Answer: Principal owed to bank or other lenders that are due within
12 months
◉ long-term liabilities.
Answer: Not due within the next 12 months
◉ retained earnings.
Answer: cumulative amount of a corporations profits that have been
reinvested.
◉ Residual interest.
Answer: owners equity
◉ Income Statement Equation.
Answer: Revenues - Expenses = Net Income
, ◉ single step income statement.
Answer: all revenues are grouped together, all expenses are grouped
together, and net income is computed as the difference between
total revenues and total expenses. Note that income tax expense is
shown separately, to emphasize the fact that the amount of income
tax expense depends on the amount of income before taxes.
◉ multi step income statement.
Answer: includes multiple sub-totals (gross profit, operating income,
income from continuing operations, net income)
◉ sales revenue.
Answer: cash and credit sales to customers
◉ cost of goods sold (cogs).
Answer: cost of goods sold to customers (expense)
◉ COGS equation.
Answer: beginning inventory + purchases - ending inventory
◉ gross profit.
