WGU MBA Finance C214 Exam Questions & Answers Rated A+

Accrual Accounting - ANSWER-Accounting system based on recording accounts based on historical prices and the matching principle Matching Principle - ANSWER-Accrual accounting principle to match revenues and expenses in the same period Historical cost principle - ANSWER-Accrual accounting principle to recorded assets, liabilities, and equity at historical levels. When an asset is purchased or liability incurred, it is recorded at cost. Accumulated depreciation - ANSWER-The total amount of depreciation claimed against the fixed assets of the firm. Marketable Securities - ANSWER-Short-term, high quality securities such as US Treasury Bills and certificates of deposits (CDs) Accounts Receivable - ANSWER-The balance in AR represents cash not yet collected from customers on goods previously sold. Inventories - ANSWER-Least liquid current asset. Include, WIP and finished goods. Fixed Assets - ANSWER-Provide benefit to the firm for more than one year and are usually recorded on the balance sheet at historical cost. (Typically PP&E) Gross PP&E - ANSWER-Original cost of all non-current assets held for use. Offset by accumulated depreciation Book value - ANSWER-The accounting value recorded on the balance sheet.