WGU C213 OBJECTIVE KEY
QUESTIONS RESOLVED, UPDATED
2025 WITH CORRECT DETAILED
SOLUTIONS||A+ GRADED!!!
1. Asset accounts - ANSWER ✓ prepaid expenses, equipment, accounts
receivable
2. An enterprise's obligations to pay cash or other economic resources to
others are called - ANSWER ✓ liabilities
3. Current assets usually are listed on a balance sheet in - ANSWER ✓
Decreasing order of liquidity
4. In non-U.S. Balance sheets, you will often see - ANSWER ✓ The
stockholders' equity section will be listed first on the balance sheet. Current
assets and current liabilities will be netted together
5. The process of valuation involves computing numbers that are both -
ANSWER ✓ Relevant and reliable
6. The process of determining the dollar value to assign to an item that is to
be recognized in the financial statements is called - ANSWER ✓ Valuation
7. Historical cost has long been used in accounting because it is - ANSWER ✓
Reliable
8. Reporting the details of a transaction in the notes to the financial
statements is called - ANSWER ✓ Disclosure
, 9. This is sometimes done in place of recognition when the effects of an event
cannot be quantified with any degree of certainty. - ANSWER ✓ Disclosure
10.When a company borrows money from a bank to be repaid in over time,
the effect on the accounting equation for the company will be to - ANSWER
✓ Increase Cash and increase Bank Loan Payable
11.When a company purchases equipment on credit, the effect on the
accounting equation will be to - ANSWER ✓ increase Equipment and
increase a liability
12.When a company pays for a warehouse by paying cash, the effect on the
accounting equation will be to - ANSWER ✓ Increase Buildings and decrease
Cash
13.When a company buys a warehouse by using a mortgage with a local bank,
the effect on the accounting equation for the company will be to - ANSWER
✓ Increase Buildings and increase Mortgage Payable
14.When an investor pays cash into a business to become a part owner, the
effect on the accounting equation for the business will be to - ANSWER ✓
Increase Cash and increase Paid-in Capital
15.A company's asset mix is determined by - ANSWER ✓ Dividing each asset
item on the balance sheet by total assets
16.A company's asset mix is strongly influence by - ANSWER ✓ The company's
industry
17.Financing mix is a measure of - ANSWER ✓ The degree to which a company
finances assets using liabilities or owners' equity
18.Gross profit is the difference between - ANSWER ✓ Sales and Cost of Goods
Sold
QUESTIONS RESOLVED, UPDATED
2025 WITH CORRECT DETAILED
SOLUTIONS||A+ GRADED!!!
1. Asset accounts - ANSWER ✓ prepaid expenses, equipment, accounts
receivable
2. An enterprise's obligations to pay cash or other economic resources to
others are called - ANSWER ✓ liabilities
3. Current assets usually are listed on a balance sheet in - ANSWER ✓
Decreasing order of liquidity
4. In non-U.S. Balance sheets, you will often see - ANSWER ✓ The
stockholders' equity section will be listed first on the balance sheet. Current
assets and current liabilities will be netted together
5. The process of valuation involves computing numbers that are both -
ANSWER ✓ Relevant and reliable
6. The process of determining the dollar value to assign to an item that is to
be recognized in the financial statements is called - ANSWER ✓ Valuation
7. Historical cost has long been used in accounting because it is - ANSWER ✓
Reliable
8. Reporting the details of a transaction in the notes to the financial
statements is called - ANSWER ✓ Disclosure
, 9. This is sometimes done in place of recognition when the effects of an event
cannot be quantified with any degree of certainty. - ANSWER ✓ Disclosure
10.When a company borrows money from a bank to be repaid in over time,
the effect on the accounting equation for the company will be to - ANSWER
✓ Increase Cash and increase Bank Loan Payable
11.When a company purchases equipment on credit, the effect on the
accounting equation will be to - ANSWER ✓ increase Equipment and
increase a liability
12.When a company pays for a warehouse by paying cash, the effect on the
accounting equation will be to - ANSWER ✓ Increase Buildings and decrease
Cash
13.When a company buys a warehouse by using a mortgage with a local bank,
the effect on the accounting equation for the company will be to - ANSWER
✓ Increase Buildings and increase Mortgage Payable
14.When an investor pays cash into a business to become a part owner, the
effect on the accounting equation for the business will be to - ANSWER ✓
Increase Cash and increase Paid-in Capital
15.A company's asset mix is determined by - ANSWER ✓ Dividing each asset
item on the balance sheet by total assets
16.A company's asset mix is strongly influence by - ANSWER ✓ The company's
industry
17.Financing mix is a measure of - ANSWER ✓ The degree to which a company
finances assets using liabilities or owners' equity
18.Gross profit is the difference between - ANSWER ✓ Sales and Cost of Goods
Sold
