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

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

 What does accounting focus on(answer) 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(answer) State- ment of cash flows



 Which users would have a primary concern with an organization's
ability to provide healthcare benefits(answer) Employees

 Which body regulates a certified public accounting firm's audit practices
when the firm is auditing a large publicly traded company(answer) The
Public Com- pany Accounting Oversight Board (PCAOB)



 What has had the most significant impact on accounting
practices(answer) 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(answer) Owners' equity

 A corporation has total liabilities of $300 million, total owners' equity of

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

,WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
$100 million, and current assets of $50 million.
What is the value of the firm's long-term assets(answer) $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(answer) In 2014, a company provides services to a customer for
which cash will be collected the next year (2015).

 Which category on the statement of cash flows summarizes cash
receipts and payments to owners and creditors of the company(answer)
Cash flows from financing activities



 Where would an investor find a summary of a company's
significant accounting policies(answer) 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




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

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

 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(answer) 11.0

 What is consistent with a continual decline in gross profit if the
firm's cost of goods sold remains the same(answer) Continual decrease
in sales

 Which two cash flow adequacy ratios represent a cash cow(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 MAKERS
Questions and Answers (2022/2023) Verified

 Which formula yields a cash times interest earned ratio of
11(answer) Cash before interest and taxes of $11,000 / cash paid for
interest of $1,000
 Which form of debt should be reported in the long-term liability
catego- ry(answer) Notes payable expected to be paid in 18 months



 In January of year 1, a company began doing business as a
corporation in order to sell technology-related accessories and services.
During its first month of operations, the following events occurred:
January 1
The corporation received $1,000,000 in cash in exchange for stock issued
to stockholders.

January 3
The corporation borrowed $250,000 from bank. The loan is a four-year loan
with an interest rate of 12 percent, payable each year on January 1 beginnin
in year 2.

January 5
The corporation purchased equipment to be used in the business for
$200,000 cash.

January 8
The corporation purchased inventory costing $200,000 by paying $120,000
in cash. The remainder was put on credit accounts with suppliers.

January 15
The corporation hired five employees. Each employee will be paid $1,000 at
the end of each month.

January 30

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