WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
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ions and Answers (2022/2023) Verified
u u u u
What does accounting focus on(answer) The impact a business's activitiesh
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ave on its overall financial performance
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Which report summarizes cash collections and cash expenditures from
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uoperating, investing, and financing activities over a
period oftime(answer) State- ment of cash flows
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Which users would have a primary concern with an organization's abilityto
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provide healthcare benefits(answer) Employees
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Which body regulates a certified public accounting firm's audit practices w
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hen the firm is auditing a large publicly traded company(answer) ThePubl
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ic Com- pany Accounting Oversight Board (PCAOB)
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What has had the most significant impact on
accountingpractices(answer) Infor- mation technology u u u u
What two items of information are revealed on the balance sheet?
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Choose 2 answers: Ownership.u u u u
Debt
Which term is defined as the residual interest in the net assets of aco
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mpany(answer) Owners' equity u u
A corporation has total liabilities of $300 million, total owners' equity of
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WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
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ions and Answers (2022/2023) Verified
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,WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
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ions and Answers (2022/2023) Verified
u u u u
$100 million, and current assets of $50 million.
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What is the value of the firm's long-term assets(answer) $350 million
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Which situation should result in revenue recognition on the income state-
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ment for the year ending 12/31/14 if the firm is using accrual-basis account-
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ing(answer) In 2014, a company provides services to a customer for which cashwill
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ube collected the next year (2015).
u u u u u
Which category on the statement of cash flows summarizes cash receiptsa
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nd payments to owners and creditors of the company(answer) Cash flows from
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inancing activities u
Where would an investor find a summary of a company's significanta
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ccounting policies(answer) In the notes to financial statements
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Which assurance does an external audit report provide for its readers?-
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: The company's financial statements fairly reflect its financial position
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Reliable: Information that can be verified u u u u u
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
,WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
Relevant: Information having to do with the matter at hand u u u u u u u u u
Material: Information that is important enough to make a difference
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Conservatism: Information related to recognizing losses as they occur u u u u u u u u
steps in the decision cycle: 1 Prepare financial statements.2
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Analyze financial statements. u u
3 Gather information. u
4 Make decision. u
5 Implement decision u
Partial financial information for a company is as follows:C
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urrent assets $36,543 u u
Total assets $58,719 Curr
u u u
ent liabilities $24,824Tota
u u u
l liabilities $48,561
u u
Stockholders' equity $10,158 u u u
Sales $46,997 u
Net Income $ 3,761
u u u
Market value of shares $41,316
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What is the price-earnings (PE) ratio for this company(answer) 11.0
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What is consistent with a continual decline in gross profit if the firm'sc
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ost of goods sold remains the same(answer) Continual decrease in sales
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Which two cash flow adequacy ratios represent a cash cow(answer) -
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$6,991/$5,486. $5,220/$1,875. u
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
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ions and Answers (2022/2023) Verified
u u u u
, WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
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ions and Answers (2022/2023) Verified
u u u u
Which formula yields a cash times interest earned ratio of 11(answer)
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Cash before interest and taxes of $11,000 / cash paid for interestof $1,000
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Which form of debt should be reported in the long-term liability catego-
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ry(answer) Notes payable expected to be paid in 18 months
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In January of year 1, a company began doing business as a corporationin
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order to sell technology-
u u u
related accessories and services. During its firstmonth of operations, the foll
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owing events occurred: u u
January 1 u
The corporation received $1,000,000 in cash in exchange for stock issued tost
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ockholders.
January 3 u
The corporation borrowed $250,000 from bank. The loan is a four-year loan
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with an interest rate of 12 percent, payable each year on January 1 beginningin
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ear 2. u
January 5 u
The corporation purchased equipment to be used in the business for
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$200,000 cash. u
January 8 u
The corporation purchased inventory costing $200,000 by paying $120,000in
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cash. The remainder was put on credit accounts with suppliers.
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January 15 u
The corporation hired five employees. Each employee will be paid $1,000 atth
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e end of each month.
u u u u
January 30 u
The corporation paid $6,000 cash for a one-
u u u u u u u
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
What does accounting focus on(answer) The impact a business's activitiesh
u u u u u u u u u u
ave on its overall financial performance
u u u u u
Which report summarizes cash collections and cash expenditures from
u u u u u u u u
uoperating, investing, and financing activities over a
period oftime(answer) State- ment of cash flows
u u u u u u u
Which users would have a primary concern with an organization's abilityto
u u u u u u u u u u u
provide healthcare benefits(answer) Employees
u u u u
Which body regulates a certified public accounting firm's audit practices w
u u u u u u u u u u
hen the firm is auditing a large publicly traded company(answer) ThePubl
u u u u u u u u u u u
ic Com- pany Accounting Oversight Board (PCAOB)
u u u u u u
What has had the most significant impact on
accountingpractices(answer) Infor- mation technology u u u u
What two items of information are revealed on the balance sheet?
u u u u u u u u u u
Choose 2 answers: Ownership.u u u u
Debt
Which term is defined as the residual interest in the net assets of aco
u u u u u u u u u u u u u u
mpany(answer) Owners' equity u u
A corporation has total liabilities of $300 million, total owners' equity of
u u u u u u u u u u u
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
,WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
$100 million, and current assets of $50 million.
u u u u u u u
What is the value of the firm's long-term assets(answer) $350 million
u u u u u u u u u u
Which situation should result in revenue recognition on the income state-
u u u u u u u u u u
ment for the year ending 12/31/14 if the firm is using accrual-basis account-
u u u u u u u u u u u u u
ing(answer) In 2014, a company provides services to a customer for which cashwill
u u u u u u u u u u u u u u
ube collected the next year (2015).
u u u u u
Which category on the statement of cash flows summarizes cash receiptsa
u u u u u u u u u u u
nd payments to owners and creditors of the company(answer) Cash flows from
u u u u u u u u u u u
inancing activities u
Where would an investor find a summary of a company's significanta
u u u u u u u u u u u
ccounting policies(answer) In the notes to financial statements
u u u u u u u
Which assurance does an external audit report provide for its readers?-
u u u u u u u u u u
: The company's financial statements fairly reflect its financial position
u u u u u u u u u
Reliable: Information that can be verified u u u u u
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
,WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
Relevant: Information having to do with the matter at hand u u u u u u u u u
Material: Information that is important enough to make a difference
u u u u u u u u u
Conservatism: Information related to recognizing losses as they occur u u u u u u u u
steps in the decision cycle: 1 Prepare financial statements.2
u u u u u u u u u u
Analyze financial statements. u u
3 Gather information. u
4 Make decision. u
5 Implement decision u
Partial financial information for a company is as follows:C
u u u u u u u u u
urrent assets $36,543 u u
Total assets $58,719 Curr
u u u
ent liabilities $24,824Tota
u u u
l liabilities $48,561
u u
Stockholders' equity $10,158 u u u
Sales $46,997 u
Net Income $ 3,761
u u u
Market value of shares $41,316
u u u u
What is the price-earnings (PE) ratio for this company(answer) 11.0
u u u u u u u u u
What is consistent with a continual decline in gross profit if the firm'sc
u u u u u u u u u u u u u
ost of goods sold remains the same(answer) Continual decrease in sales
u u u u u u u u u u
Which two cash flow adequacy ratios represent a cash cow(answer) -
u u u u u u u u u u
$6,991/$5,486. $5,220/$1,875. u
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
, WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
u u u u
Which formula yields a cash times interest earned ratio of 11(answer)
u u u u u u u u u u u
Cash before interest and taxes of $11,000 / cash paid for interestof $1,000
u u u u u u u u u u u u u
Which form of debt should be reported in the long-term liability catego-
u u u u u u u u u u u
ry(answer) Notes payable expected to be paid in 18 months
u u u u u u u u u u
In January of year 1, a company began doing business as a corporationin
u u u u u u u u u u u u u u
order to sell technology-
u u u
related accessories and services. During its firstmonth of operations, the foll
u u u u u u u u u u u
owing events occurred: u u
January 1 u
The corporation received $1,000,000 in cash in exchange for stock issued tost
u u u u u u u u u u u u
ockholders.
January 3 u
The corporation borrowed $250,000 from bank. The loan is a four-year loan
u u u u u u u u u u u
with an interest rate of 12 percent, payable each year on January 1 beginningin
u u u u u u u u u u u u u u
ear 2. u
January 5 u
The corporation purchased equipment to be used in the business for
u u u u u u u u u u
$200,000 cash. u
January 8 u
The corporation purchased inventory costing $200,000 by paying $120,000in
u u u u u u u u u u
cash. The remainder was put on credit accounts with suppliers.
u u u u u u u u u
January 15 u
The corporation hired five employees. Each employee will be paid $1,000 atth
u u u u u u u u u u u u
e end of each month.
u u u u
January 30 u
The corporation paid $6,000 cash for a one-
u u u u u u u
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Ques
u u u u u u u u
ions and Answers (2022/2023) Verified
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