WGU C213 Accounting

WGU C213 Final Exam: ACCOUNTING FOR DECISION
MAKERSQuestions and Answers (2022/2023) Verified
WGU C202 Managing Human Capital
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 Whatdoesaccountingfocuson(answer)Theimpactabusiness'sactivities
haveon itsoverallfinancialperformance

 Whichreportsummarizescashcollectionsandcashexpendituresfromoper
ating, investing, and financing activities over a
periodoftime(answer)State-mentofcashflows



 Whichuserswouldhaveaprimaryconcernwithanorganization'sabilitytopro
videhealthcarebenefits(answer)Employees

 Which body regulates a certified public accounting firm's audit
practiceswhenthefirmisauditingalargepubliclytradedcompany(answer)TheP
ublicCom-panyAccountingOversightBoard(PCAOB)



 What has had the most significant impact on
accountingpractices(answer)Infor-mationtechnology


 Whattwoitemsofinformationarerevealedonthebalancesheet?

Choose2answers:Ownership.
Debt
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified

,WGU C213 Final Exam: ACCOUNTING FOR DECISION
MAKERSQuestions and Answers (2022/2023) Verified

 Whichtermisdefinedastheresidualinterestinthenetassetsofacompa
ny(answer)Owners'equity

 Acorporationhastotalliabilitiesof$300million,totalowners'equityof
$100million,andcurrentassetsof$50million.
Whatisthevalueofthefirm'slong-termassets(answer)$350million

 Whichsituationshouldresultinrevenuerecognitionontheincomestate-ment
for the year ending 12/31/14 if the firm is using accrual-basis account-
ing(answer)In 2014, a company provides services to a customer for
which cashwill becollectedthenextyear(2015).

 Whichcategoryonthestatementofcashflowssummarizescashreceiptsand
payments to owners and creditors of the company(answer)Cash
flowsfromfinancingactivities



 Wherewouldaninvestorfindasummaryofacompany'ssignificantacco
untingpolicies(answer)Inthenotestofinancialstatements

 Whichassurancedoesanexternalauditreportprovideforitsreaders?-
:Thecompany'sfinancialstatementsfairlyreflectitsfinancialposition

 Reliable:Informationthatcanbeverified




WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified

,WGU C213 Final Exam: ACCOUNTING FOR DECISION
MAKERSQuestions and Answers (2022/2023) Verified
 Relevant:Informationhavingtodowiththematterathand

 Material:Informationthatisimportantenoughtomakeadifference



 Conservatism:Informationrelatedtorecognizinglossesastheyoccur

 stepsinthedecisioncycle:1Preparefinancialstatements.
2Analyzefinancialstatements.
3 Gatherinformation.
4 Makedecision.
5 Implementdecision

 Partialfinancialinformationforacompanyisasfollows:Cur

rentassets$36,543
Total assets
$58,719Currentliabilities
$24,824Totalliabilities$48
,561
Stockholders'equity$10,158
Sales$46,997
NetIncome$3,761
Marketvalueofshares$41,316
Whatistheprice-earnings(PE)ratioforthiscompany(answer)11.0

 Whatisconsistentwithacontinualdeclineingrossprofitifthefirm'scostof
goodssoldremainsthesame(answer)Continualdecreaseinsales

 Whichtwocashflowadequacyratiosrepresentacashcow(answer)-
$6,991/$5,486.$5,220/$1,875.

WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified

, WGU C213 Final Exam: ACCOUNTING FOR DECISION
MAKERSQuestions and Answers (2022/2023) Verified
 Which formula yields a cash times interest earned ratio
of11(answer)Cashbeforeinterestandtaxesof$11,000/cashpaidforinter
estof$1,000
 Whichformofdebtshouldbereportedinthelong-termliabilitycatego-
ry(answer)Notespayableexpectedtobepaidin18months



 InJanuaryofyear1,acompanybegandoingbusinessasacorporationinorde
rtoselltechnology-
relatedaccessoriesandservices.Duringitsfirstmonthofoperations,thefollowi
ngeventsoccurred:
January1
Thecorporationreceived$1,000,000incashinexchangeforstockissuedtostock
holders.

January3
Thecorporationborrowed$250,000frombank.Theloanisafour-yearloan
withaninterestrateof12percent,payableeachyearonJanuary1beginninginyear2

January5
Thecorporationpurchasedequipmenttobeusedinthebusinessfor
$200,000cash.

January8
Thecorporationpurchasedinventorycosting$200,000bypaying$120,000incas
h.Theremainderwasputoncreditaccountswithsuppliers.

January15
Thecorporationhiredfiveemployees.Eachemployeewillbepaid$1,000attheen
dofeachmonth.

January30
Thecorporationpaid$6,000cashforaone-
yearinsurancepolicy.ThepolicyperiodwillbeginonFebruary1,year 1.
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified