WGU C213 ACCOUNTING FOR DECISION MAKERS LATEST
87 REAL EXAM QUESTIONS AND CORRECT ANSWERS 2025-
2026 (VERIFIED ANSWERS)
l
A corporation has total liabilities of $300 million, total owners' equity of $100
million, and current assets of $50 million.
What is the value of the firm's long-term assets $350 million
Which situation should result in revenue recognition on the income state- ment
for the year ending 12/31/14 if the firm is using accrual-basis account- ing In
2014, a company provides services to a customer for which cash will be collected
the next year (2015).
What does accounting focus on ?The impact a business's activities have on its
overall financial performance
Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time State- ment
of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits Employees
, Which body regulates a certified public accounting firm's audit practices when
the firm is auditing a large publicly traded company The Public Com- pany
Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices Infor- mation
technology
What two items of information are revealed on the balance sheet?
Choose 2 answers: Ownership. Debt
Which term is defined as the residual interest in the net assets of a company
Owners' equity
. Which category on the statement of cash flows summarizes cash receipts and
payments to owners and creditors of the company Cash flows from financing
activities
. Where would an investor find a summary of a company's significant
accounting policies In the notes to financial statements
. Which assurance does an external audit report provide for its readers?- : The
company's financial statements fairly reflect its financial position
. Reliable: Information that can be verified
. Relevant: Information having to do with the matter at hand
,. Material: Information that is important enough to make a difference
. Conservatism: Information related to recognizing losses as they occur
. steps in the decision cycle: 1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information. 4 Make decision.
5 Implement decision
18. Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158
Sales $46,997
Net Income $ 3,761
Market value of shares $41,316
What is the price-earnings (PE) ratio for this company 11.0
19. What is consistent with a continual decline in gross profit if the firm's cost
of goods sold remains the same Continual decrease in sales
20. Which two cash flow adequacy ratios represent a cash cow -
$6,991/$5,486. $5,220/$1,875.
21. Which formula yields a cash times interest earned ratio of 11 Cash before
interest and taxes of $11,000 / cash paid for interest of $1,000
87 REAL EXAM QUESTIONS AND CORRECT ANSWERS 2025-
2026 (VERIFIED ANSWERS)
l
A corporation has total liabilities of $300 million, total owners' equity of $100
million, and current assets of $50 million.
What is the value of the firm's long-term assets $350 million
Which situation should result in revenue recognition on the income state- ment
for the year ending 12/31/14 if the firm is using accrual-basis account- ing In
2014, a company provides services to a customer for which cash will be collected
the next year (2015).
What does accounting focus on ?The impact a business's activities have on its
overall financial performance
Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time State- ment
of cash flows
Which users would have a primary concern with an organization's ability to
provide healthcare benefits Employees
, Which body regulates a certified public accounting firm's audit practices when
the firm is auditing a large publicly traded company The Public Com- pany
Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting practices Infor- mation
technology
What two items of information are revealed on the balance sheet?
Choose 2 answers: Ownership. Debt
Which term is defined as the residual interest in the net assets of a company
Owners' equity
. Which category on the statement of cash flows summarizes cash receipts and
payments to owners and creditors of the company Cash flows from financing
activities
. Where would an investor find a summary of a company's significant
accounting policies In the notes to financial statements
. Which assurance does an external audit report provide for its readers?- : The
company's financial statements fairly reflect its financial position
. Reliable: Information that can be verified
. Relevant: Information having to do with the matter at hand
,. Material: Information that is important enough to make a difference
. Conservatism: Information related to recognizing losses as they occur
. steps in the decision cycle: 1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information. 4 Make decision.
5 Implement decision
18. Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158
Sales $46,997
Net Income $ 3,761
Market value of shares $41,316
What is the price-earnings (PE) ratio for this company 11.0
19. What is consistent with a continual decline in gross profit if the firm's cost
of goods sold remains the same Continual decrease in sales
20. Which two cash flow adequacy ratios represent a cash cow -
$6,991/$5,486. $5,220/$1,875.
21. Which formula yields a cash times interest earned ratio of 11 Cash before
interest and taxes of $11,000 / cash paid for interest of $1,000
