WGU C213 ACCOUNTING FOR DECISION
MAKERS LATEST EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS)
Status: Passed
10.
Which situation should result in revenue recognition on the income statement for the year ending 12/31/14 if the
firm is using accrual- basis accounting?
YOUR CORRECT
ANSWER ANSWER
In 2014, a company enters into a contract whereby it agrees to provide services to a customer next year
(2015).
In 2014, a company collects cash from a customer for services it will provide next year (2015).
In 2014, a company provides services to a customer for which cash will be collected the next year (2015).
In 2014, a company collects cash from a customer for services it provided in the previous year (2013).
11.
Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors
of the company?
YOUR CORRECT
ANSWER ANSWER
Cash flows from investing activities
Cash flows from operating activities
Cash flows from business activities
Cash flows from financing activities
12.
Where would an investor find a summary of a company’s significant accounting policies?
YOUR CORRECT
ANSWER ANSWER
In the balance sheet
In the income statement
In the statement of cash flows
,In the notes to financial statements
13.
Which assurance does an external audit report provide for its readers?
YOUR CORRECT
ANSWER ANSWER
The company will be a good credit risk
The company will generate net income
The company’s financial statements fairly reflect its financial position
The company will generate positive cash flows
14.
Match each accounting term with its definition.
Answer options may be used more than once or not at all.
YOUR CORRECT
ANSWER ANSWER
Reliable Information that can be verified Information that can be verified
Information having to do with the mat- Information having to do with the matter
Relevant
ter at hand at hand
Information that is important enough to Information that is important enough to
Material
make a difference make a difference
Information related to recognizing loss- Information related to recognizing losses
Conservatism
es as they occur as they occur
15.
Orderthestepsin thedecisioncyclefromfirst(1)to last(5).
Select your answers from the pull-down list.
, YOUR CORRECT
ANSWER ANSWER
1 Prepare financial statements Prepare financial statements
2 Analyze financial statements Analyze financial statements
3 Gather information Gather information
YOUR CORRECT
ANSWER ANSWER
4 Make decision Make decision
5 Implement decision Implementdecision
16.
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?
YOUR CORRECT ANSWER ANSWER
11.0
12.5
12.9
15.6
17.
What does it mean if a company has a debt ratio of 101.5%?
YOUR CORRECT
ANSWER ANSWER
The company has 1.5% more total liabilities than total assets.
The company has 1.5% more total liabilities than gross sales.
The company has 1.5% more current liabilities than current assets.
The company has 1.5% more total liabilities than net income.
MAKERS LATEST EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS)
Status: Passed
10.
Which situation should result in revenue recognition on the income statement for the year ending 12/31/14 if the
firm is using accrual- basis accounting?
YOUR CORRECT
ANSWER ANSWER
In 2014, a company enters into a contract whereby it agrees to provide services to a customer next year
(2015).
In 2014, a company collects cash from a customer for services it will provide next year (2015).
In 2014, a company provides services to a customer for which cash will be collected the next year (2015).
In 2014, a company collects cash from a customer for services it provided in the previous year (2013).
11.
Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors
of the company?
YOUR CORRECT
ANSWER ANSWER
Cash flows from investing activities
Cash flows from operating activities
Cash flows from business activities
Cash flows from financing activities
12.
Where would an investor find a summary of a company’s significant accounting policies?
YOUR CORRECT
ANSWER ANSWER
In the balance sheet
In the income statement
In the statement of cash flows
,In the notes to financial statements
13.
Which assurance does an external audit report provide for its readers?
YOUR CORRECT
ANSWER ANSWER
The company will be a good credit risk
The company will generate net income
The company’s financial statements fairly reflect its financial position
The company will generate positive cash flows
14.
Match each accounting term with its definition.
Answer options may be used more than once or not at all.
YOUR CORRECT
ANSWER ANSWER
Reliable Information that can be verified Information that can be verified
Information having to do with the mat- Information having to do with the matter
Relevant
ter at hand at hand
Information that is important enough to Information that is important enough to
Material
make a difference make a difference
Information related to recognizing loss- Information related to recognizing losses
Conservatism
es as they occur as they occur
15.
Orderthestepsin thedecisioncyclefromfirst(1)to last(5).
Select your answers from the pull-down list.
, YOUR CORRECT
ANSWER ANSWER
1 Prepare financial statements Prepare financial statements
2 Analyze financial statements Analyze financial statements
3 Gather information Gather information
YOUR CORRECT
ANSWER ANSWER
4 Make decision Make decision
5 Implement decision Implementdecision
16.
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?
YOUR CORRECT ANSWER ANSWER
11.0
12.5
12.9
15.6
17.
What does it mean if a company has a debt ratio of 101.5%?
YOUR CORRECT
ANSWER ANSWER
The company has 1.5% more total liabilities than total assets.
The company has 1.5% more total liabilities than gross sales.
The company has 1.5% more current liabilities than current assets.
The company has 1.5% more total liabilities than net income.
