WGU C213 ACCOUNTING 2026 LATEST QUESTIONS AND
ANSWERS SURE A+
✔✔Operating activities are - ✔✔those activities that comprise the day-to-day operations
of a business. Investing activities are the purchase and sale of long-term assets such as
land and equipment. Financing activities are those activities through which cash is
obtained from, or repaid to, creditors and investors.
✔✔The notes to financial statements provide - ✔✔information on the accounting
assumptions used in preparing the statements and also provide supplemental
information not included in the statements themselves. Notes are an integral part of
financial statements.
✔✔Financial statement notes are of four general types - ✔✔a summary of accounting
policies, additional information about summary totals in the statements, disclosure of
important information not in the statements, and supplemental disclosure required by
the FASB or SEC.
✔✔An audit performed by accountants from outside a company - ✔✔increases the
reliance that users can place on the information in the company's financial statements.
✔✔A key trade-off in the preparation of useful accounting information is - ✔✔between
relevance and reliability. Other concepts underlying the practice of accounting are
comparability, conservatism, materiality, and articulation.
✔✔Comparability makes - ✔✔financial statement information more useful because it
allows a company's financial statements to be analyzed in light of the company's own
performance in prior years or other companies' performance.
✔✔Relevant information is - ✔✔information that is provided on a timely basis and can
be used to assess the past and to project the future for decision making.
✔✔Conservatism is - ✔✔the practice of recognizing all losses but not recognizing gains
until they are certain.
✔✔DuPont Framework - ✔✔Return on sales is computed as net income divided by
sales and is interpreted as the number of pennies in profit generated from each dollar of
sales.
Asset turnover is computed as sales divided by assets and is interpreted as the number
of dollars in sales generated by each dollar of assets.
Assets-to-equity ratio is computed as assets divided by equity and is interpreted as the
number of dollars of assets acquired for each dollar invested by stockholders.
ANSWERS SURE A+
✔✔Operating activities are - ✔✔those activities that comprise the day-to-day operations
of a business. Investing activities are the purchase and sale of long-term assets such as
land and equipment. Financing activities are those activities through which cash is
obtained from, or repaid to, creditors and investors.
✔✔The notes to financial statements provide - ✔✔information on the accounting
assumptions used in preparing the statements and also provide supplemental
information not included in the statements themselves. Notes are an integral part of
financial statements.
✔✔Financial statement notes are of four general types - ✔✔a summary of accounting
policies, additional information about summary totals in the statements, disclosure of
important information not in the statements, and supplemental disclosure required by
the FASB or SEC.
✔✔An audit performed by accountants from outside a company - ✔✔increases the
reliance that users can place on the information in the company's financial statements.
✔✔A key trade-off in the preparation of useful accounting information is - ✔✔between
relevance and reliability. Other concepts underlying the practice of accounting are
comparability, conservatism, materiality, and articulation.
✔✔Comparability makes - ✔✔financial statement information more useful because it
allows a company's financial statements to be analyzed in light of the company's own
performance in prior years or other companies' performance.
✔✔Relevant information is - ✔✔information that is provided on a timely basis and can
be used to assess the past and to project the future for decision making.
✔✔Conservatism is - ✔✔the practice of recognizing all losses but not recognizing gains
until they are certain.
✔✔DuPont Framework - ✔✔Return on sales is computed as net income divided by
sales and is interpreted as the number of pennies in profit generated from each dollar of
sales.
Asset turnover is computed as sales divided by assets and is interpreted as the number
of dollars in sales generated by each dollar of assets.
Assets-to-equity ratio is computed as assets divided by equity and is interpreted as the
number of dollars of assets acquired for each dollar invested by stockholders.
