WGU C213 Objective Assessment Accounting for Decision Makers Final Exam |Real Questions and Verified Answers | A+ GRADED!!

WGU C213 Objective Assessment Accounting for Decision Makers Final Exam |Real Questions and Verified Answers | A+ GRADED!! 1. When a company purchases equipment on credit, the effect on the accounting equation will be to - ANSWER increase Equipment and increase a liability 2. 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 3. 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 4. 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 5. A company's asset mix is determined by - ANSWER Dividing each asset item on the balance sheet by total assets 6. A company's asset mix is strongly influence by - ANSWER The company's industry 7. Financing mix is a measure of - ANSWER The degree to which a company finances assets using liabilities or owners' equity 8. Gross profit is the difference between - ANSWER Sales and Cost of Goods Sold 9. The concept that income is defined as the excess of net assets at the end of an accounting period over the net assets at the beginning of the accounting period, excluding effect of transactions with owners is called - ANSWER financial capital maintenance 10.The proper order on an income statement for the various measures of income is - ANSWER gross profit, operating income, income from continuing operations, net income, comprehensive income 11.A measure of a company's performance that includes all items that are expected to continue into the future is - ANSWER Income from Continuing Operations 12.Operating Income is equal to - ANSWER Income from Continuing Operations plus Income Tax Expense and Interest Expense plus/minus other miscellaneous revenues, expenses, gains, and losses 13.The number used to reflect an overall measure of the change in a company's wealth during the period is - ANSWER Comprehensive Income 14.When a company determines to get out of a specific line of business - ANSWER Revenues and expenses from that line of business are excluded from the company's recurring revenues and expenses when preparing an income statement. 15.For a gain or loss to be classified as extraordinary, it must be - ANSWER both unusual and infrequent 16.When revenue and expense items are arranged to highlight important profit relationships, the resulting income statement format is called a - ANSWER multiple-step income statement 17.With a single-step income statement all revenues are grouped together, all expenses are grouped together, and net income is computed as the difference between the two. - ANSWER True 18.Under the general rule of revenue recognition, revenue is recognized when - ANSWER the earnings process is complete, and a valid promise of payment has been received. 19.A wholesale bakery would normally recognize revenue when - ANSWER goods are delivered to the customer. 20.Costs that can be reasonably associated with specific revenues but NOT with specific products should be - ANSWER expensed in the period in which the related revenue is recognized. 21.Generally, recognition criteria are met and revenues are recognized - ANSWER at the point of sale. 22.Which of the following principles best describes the rationale for matching administrative and selling expenses with revenues of the current period? - ANSWER Immediate recognition - ANSWER sales. 23.If a company anticipates a 40% increase in sales volume, then it is most likely that the company will need about a 40% increase in - ANSWER accounts payable.