WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Questions and Answers (2022/2023) Verified
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Course
WGU C213
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WGU C213
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Questions and Answers (2022/2023) Verified WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Questions and Answers (2022/2023) Verified WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS Questions and Answers (2022/2023) Verified
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
What does accounting focus on(answer) The impact a business's
activities have on its overall financial performance
Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of
time(answer) State- ment of cash flows
Which users would have a primary concern with an organization's
ability to provide healthcare benefits(answer) Employees
Which body regulates a certified public accounting firm's audit practices
when the firm is auditing a large publicly traded company(answer) The
Public Com- pany Accounting Oversight Board (PCAOB)
What has had the most significant impact on accounting
practices(answer) Infor- mation technology
What two items of information are revealed on the balance sheet?
Choose 2 answers:
Ownership. Debt
Which term is defined as the residual interest in the net assets of
a company(answer) Owners' equity
A corporation has total liabilities of $300 million, total owners' equity of
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
,WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
$100 million, and current assets of $50 million.
What is the value of the firm's long-term assets(answer) $350 million
Which situation should result in revenue recognition on the income
state- ment for the year ending 12/31/14 if the firm is using accrual-basis
account- ing(answer) In 2014, a company provides services to a customer for
which cash will be collected the next year (2015).
Which category on the statement of cash flows summarizes cash
receipts and payments to owners and creditors of the company(answer)
Cash flows from financing activities
Where would an investor find a summary of a company's
significant accounting policies(answer) In the notes to financial
statements
Which assurance does an external audit report provide for its readers?-
: The company's financial statements fairly reflect its financial position
Reliable: Information that can be verified
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
,WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
Relevant: Information having to do with the matter at hand
Material: Information that is important enough to make a difference
Conservatism: Information related to recognizing losses as they occur
steps in the decision cycle: 1 Prepare financial
statements. 2 Analyze financial statements.
3 Gather information.
4 Make decision.
5 Implement decision
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(answer) 11.0
What is consistent with a continual decline in gross profit if the
firm's cost of goods sold remains the same(answer) Continual decrease
in sales
Which two cash flow adequacy ratios represent a cash cow(answer) -
$6,991/$5,486. $5,220/$1,875.
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
, WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
Which formula yields a cash times interest earned ratio of
11(answer) Cash before interest and taxes of $11,000 / cash paid for
interest of $1,000
Which form of debt should be reported in the long-term liability
catego- ry(answer) Notes payable expected to be paid in 18 months
In January of year 1, a company began doing business as a
corporation in order to sell technology-related accessories and services.
During its first month of operations, the following events occurred:
January 1
The corporation received $1,000,000 in cash in exchange for stock issued
to stockholders.
January 3
The corporation borrowed $250,000 from bank. The loan is a four-year loan
with an interest rate of 12 percent, payable each year on January 1 beginnin
in year 2.
January 5
The corporation purchased equipment to be used in the business for
$200,000 cash.
January 8
The corporation purchased inventory costing $200,000 by paying $120,000
in cash. The remainder was put on credit accounts with suppliers.
January 15
The corporation hired five employees. Each employee will be paid $1,000 at
the end of each month.
January 30
WGU C213 Final Exam: ACCOUNTING FOR DECISION MAKERS
Questions and Answers (2022/2023) Verified
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