WGU C213 Final Exam Accounting For Decision Makers
WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS NEWEST
2025 COMPLETE 200 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS)|ALREADY GRADED A+
If a company has a high degree of financial leverage, what does that tell us about the firm's risk
profile?
a. Low Risk
b. Appropriate Risk
c. Higher ability to pay debt
d. Higher profits to shareholders - ANSWER-d
What is the cash cycle?
a. The speed of collecting cash from customers
b. The amount of cash kept in banks
c. The comparison of debt to cash
d.The amount of time to regenerate cash - ANSWER-d
Why is float important to understand?
a. To know how to keep the company profitable
b. To know why the company needs cash
c. To determine when to buy fixed assets
d. To time cash expenditures
e. None of the above - ANSWER-d
What should a company do to manage its working capital?
a. Collect quickly and pay slowly
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, WGU C213 Final Exam Accounting For Decision Makers
b. Keep a large cash balance
c. Maximize the use of long term investment
d. Depreciate assets more slowly - ANSWER-a
What would be a source of information to determine Replacement Cost?
a. Building Appraisal
b. Accumulated Depreciation Expense
c. Stock price
d. Statement of Cash Flows - ANSWER-a
What does the Sarbanes-Oxley Act require companies to do?
a. Have a board of directors
b. Register all foreign sales
c. Make estimated tax payments
d. Have internal control audits - ANSWER-d
FINRA (Financial Industry Regulatory Authority) does the following: (pick one)
a. No foreign bribery by corporations
b. Regulates bond prices
c. Establishes Credit Unions
d. Prosecutes naughty stock brokers
e. Regulates Hedge Funds - ANSWER-d
If a product is made 100% domestically, what can affect its domestic market?
a. International exchange rates
b. International competition
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, WGU C213 Final Exam Accounting For Decision Makers
c. Product tariffs
d. International political regulations - ANSWER-b
If a company makes its product in a foreign country where labor costs are much lower, what
happens?
a. Profits and domestic employment goes up
b. Costs go up and domestic employment goes down
c. Costs stay the same and domestic employment increases
d. Profits go up and domestic employment decreases. - ANSWER-d
If the value of a dollar increases, the price of imports:
a. Increases
b. Decreases
c. Stays the same
d. Fluctuates - ANSWER-b
Why would a farmer buy a hedge when he signs a contract to sell produce overseas?
a. To avoid tariffs
b. To reduce currency risk
c. To increase profits
d. To avoid competition - ANSWER-b
A basic equation for the balance sheet is:
a. Equity = Assets - Liabilities
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
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, WGU C213 Final Exam Accounting For Decision Makers
d. Assets = Equity - Liabilities - ANSWER-a
Why is the Balance Sheet known as a permanent statement?
a. Because the statement is sent to the SEC.
b. Because the other statements are reset at the end of the fiscal year
c. Because it is printed out and archived
d. Because it persists in the minds of the shareholders. - ANSWER-b
How do you calculate the change in Retained Earnings?
a. Ending Retained Earnings - Change in Cash
b. EBIT divided by Total Assets + Dividends
c. EBIT - Change in Cash - Dividends
d. Net Income - Dividends - ANSWER-d
Which of the following is generally true?
a. Gross Profit and Operating Income are the same
b. Cost of Goods Sold + Operating Expenses = Net Income
c. Operating Income and EBIT are the same
d. EBIT + Income Taxes = Net income - ANSWER-c
Which components are part of total assets?
a. Cash, Accounts Receivable, Short Term Debt
b. Cash Accounts Receivable, Inventory, Long Term Assets
c. Accounts Payable, Long Term Assets, Long Term Debt
d. Accounts Payable, Net Income, Equity - ANSWER-b
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WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS NEWEST
2025 COMPLETE 200 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS)|ALREADY GRADED A+
If a company has a high degree of financial leverage, what does that tell us about the firm's risk
profile?
a. Low Risk
b. Appropriate Risk
c. Higher ability to pay debt
d. Higher profits to shareholders - ANSWER-d
What is the cash cycle?
a. The speed of collecting cash from customers
b. The amount of cash kept in banks
c. The comparison of debt to cash
d.The amount of time to regenerate cash - ANSWER-d
Why is float important to understand?
a. To know how to keep the company profitable
b. To know why the company needs cash
c. To determine when to buy fixed assets
d. To time cash expenditures
e. None of the above - ANSWER-d
What should a company do to manage its working capital?
a. Collect quickly and pay slowly
1|Page
, WGU C213 Final Exam Accounting For Decision Makers
b. Keep a large cash balance
c. Maximize the use of long term investment
d. Depreciate assets more slowly - ANSWER-a
What would be a source of information to determine Replacement Cost?
a. Building Appraisal
b. Accumulated Depreciation Expense
c. Stock price
d. Statement of Cash Flows - ANSWER-a
What does the Sarbanes-Oxley Act require companies to do?
a. Have a board of directors
b. Register all foreign sales
c. Make estimated tax payments
d. Have internal control audits - ANSWER-d
FINRA (Financial Industry Regulatory Authority) does the following: (pick one)
a. No foreign bribery by corporations
b. Regulates bond prices
c. Establishes Credit Unions
d. Prosecutes naughty stock brokers
e. Regulates Hedge Funds - ANSWER-d
If a product is made 100% domestically, what can affect its domestic market?
a. International exchange rates
b. International competition
2|Page
, WGU C213 Final Exam Accounting For Decision Makers
c. Product tariffs
d. International political regulations - ANSWER-b
If a company makes its product in a foreign country where labor costs are much lower, what
happens?
a. Profits and domestic employment goes up
b. Costs go up and domestic employment goes down
c. Costs stay the same and domestic employment increases
d. Profits go up and domestic employment decreases. - ANSWER-d
If the value of a dollar increases, the price of imports:
a. Increases
b. Decreases
c. Stays the same
d. Fluctuates - ANSWER-b
Why would a farmer buy a hedge when he signs a contract to sell produce overseas?
a. To avoid tariffs
b. To reduce currency risk
c. To increase profits
d. To avoid competition - ANSWER-b
A basic equation for the balance sheet is:
a. Equity = Assets - Liabilities
b. Liabilities = Equity + Assets
c. Assets = Liabilities - Equity
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, WGU C213 Final Exam Accounting For Decision Makers
d. Assets = Equity - Liabilities - ANSWER-a
Why is the Balance Sheet known as a permanent statement?
a. Because the statement is sent to the SEC.
b. Because the other statements are reset at the end of the fiscal year
c. Because it is printed out and archived
d. Because it persists in the minds of the shareholders. - ANSWER-b
How do you calculate the change in Retained Earnings?
a. Ending Retained Earnings - Change in Cash
b. EBIT divided by Total Assets + Dividends
c. EBIT - Change in Cash - Dividends
d. Net Income - Dividends - ANSWER-d
Which of the following is generally true?
a. Gross Profit and Operating Income are the same
b. Cost of Goods Sold + Operating Expenses = Net Income
c. Operating Income and EBIT are the same
d. EBIT + Income Taxes = Net income - ANSWER-c
Which components are part of total assets?
a. Cash, Accounts Receivable, Short Term Debt
b. Cash Accounts Receivable, Inventory, Long Term Assets
c. Accounts Payable, Long Term Assets, Long Term Debt
d. Accounts Payable, Net Income, Equity - ANSWER-b
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