WGU C213 Essential Test Toolkit Exam Questions and Approved with Distinction Marking Scheme Latest 2024/2025
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Course
WGU C213 Accounting for Decision Makers
Institution
WGU C213 Accounting For Decision Makers
WGU C213 Essential Test Toolkit Exam Questions and Approved with Distinction Marking Scheme Latest 2024/2025
The number used to reflect an overall measure of the change in a company's wealth during the period is - Correct Answer Comprehensive Income
When a company determines to get out of a s...
WGU C213 Essential Test Toolkit
Exam Questions and Approved with
Distinction Marking Scheme Latest
2024/2025
The number used to reflect an overall measure of the change in a
company's wealth during the period is - Correct Answer
Comprehensive Income
When a company determines to get out of a specific line of
business - Correct Answer Revenues and expenses from that
line of business are excluded from the company's recurring
revenues and expenses when preparing an income statement.
For a gain or loss to be classified as extraordinary, it must be -
Correct Answer both unusual and infrequent
When revenue and expense items are arranged to highlight
important profit relationships, the resulting income statement
format is called a - Correct Answer multiple-step income
statement
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. - Correct Answer
True
,Under the general rule of revenue recognition, revenue is
recognized when - Correct Answer the earnings process is
complete, and a valid promise of payment has been received.
A wholesale bakery would normally recognize revenue when -
Correct Answer goods are delivered to the customer.
Costs that can be reasonably associated with specific revenues
but NOT with specific products should be - Correct Answer
expensed in the period in which the related revenue is
recognized.
Generally, recognition criteria are met and revenues are
recognized - Correct Answer at the point of sale.
Which of the following principles best describes the rationale for
matching administrative and selling expenses with revenues of
the current period? - Correct Answer Immediate recognition
- Correct Answer sales.
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
- Correct Answer accounts payable.
SEC - Correct Answer public companies - publicly traded, not
private sales
, What is the cause of financial statement problems? - Correct
Answer Sloppy accounting, bad assumptions, intentional
deceptions, weak controls
Internals Controls in purchasing - Correct Answer Purchase
order needs to be approved by someone with proper authority
and someone else needs to enter it into the system, receiving
report should show inventory received in the warehouse,
supplier's invoice compared to receiving report and purchase
order to make sure the proper amount of inventory was ordered
and received, then a check can be issued to the vendor.
- Correct Answer Meet internal goals, meet external
expecations (income soothing), qualify for bank loan or enhance
IPO, income soothing
SOX - Correct Answer Brought federal regulation to auditing
PCAOB - Correct Answer created through SOX to oversee
accounting and auditing. Public companies accounting oversight
board. Conducts investigations on auditing firms and can punish
firms by not allowing them to audit SEC companies.
Constraints on auditors - Correct Answer can't provide non-
audit services (up sale clients - management functions, legal
services, investments), must be rotated off audit every five years
(not the firm conducting the audit, but the auditor has to be
rotated), report to the audit committee and not the company they
are auditing.
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