WGU C213 ACCOUNTING FOR DECISION MAKERS OA NEWEST
ACTUAL EXAM WITH COMPLETE QUESTIONS AND ANSWERS/
VERIFED/ (A+ GRADED)
Cash flows from financing activities
Which category on the statement of cash flows summarizes
cash receipts and payments to owners and creditors of the
company?
3 multiple choice options
The company's financial statements fairly reflect its financial
position
Which assurance does an external audit report provide for its
readers?
3 multiple choice options
In the notes to financial statements
Where would an investor find a summary of a company's
significant accounting policies?
3 multiple choice options
11
Page 1 of 29
,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?
3 multiple choice options
The company has 1.5% more total liabilities than total assets.
Page 2 of 29
, What does it mean if a company has a debt ratio of 101.5%?
3 multiple choice options
Continual decrease in sales
What is consistent with a continual decline in gross profit if the
firm's cost of goods sold remains the same?
3 multiple choice options
$6,991 / $5,486
Which two cash flow adequacy ratios represent a cash cow?
3 multiple choice options
The impact a business's activities have on its overall financial
performance
What does accounting focus on?
3 multiple choice options
Statement of cash flows
Which report summarizes cash collections and cash
expenditures from operating, investing, and financing activities
over a period of time?
Page 3 of 29
ACTUAL EXAM WITH COMPLETE QUESTIONS AND ANSWERS/
VERIFED/ (A+ GRADED)
Cash flows from financing activities
Which category on the statement of cash flows summarizes
cash receipts and payments to owners and creditors of the
company?
3 multiple choice options
The company's financial statements fairly reflect its financial
position
Which assurance does an external audit report provide for its
readers?
3 multiple choice options
In the notes to financial statements
Where would an investor find a summary of a company's
significant accounting policies?
3 multiple choice options
11
Page 1 of 29
,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?
3 multiple choice options
The company has 1.5% more total liabilities than total assets.
Page 2 of 29
, What does it mean if a company has a debt ratio of 101.5%?
3 multiple choice options
Continual decrease in sales
What is consistent with a continual decline in gross profit if the
firm's cost of goods sold remains the same?
3 multiple choice options
$6,991 / $5,486
Which two cash flow adequacy ratios represent a cash cow?
3 multiple choice options
The impact a business's activities have on its overall financial
performance
What does accounting focus on?
3 multiple choice options
Statement of cash flows
Which report summarizes cash collections and cash
expenditures from operating, investing, and financing activities
over a period of time?
Page 3 of 29
