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WGU C213 OBJECTIVE ASSESMENT ACCOUNTING FOR DESCION MAKERS EXAM GUIDE |BRAND NEW EXAM QUESTIONS AND CORRECT ANSWERS ALL GRADED A+|GUARANTEED SUCCESS|LATEST UPDATE FOR 2025$11.49
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WGU C213 OBJECTIVE ASSESMENT ACCOUNTING FOR DESCIO
WGU C213 OBJECTIVE ASSESMENT ACCOUNTING FOR DESCIO
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WGU C213 OBJECTIVE ASSESMENT ACCOUNTING FOR DESCION MAKERS EXAM GUIDE |BRAND NEW EXAM QUESTIONS AND CORRECT ANSWERS ALL GRADED A+|GUARANTEED SUCCESS|LATEST UPDATE FOR 2025
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WGU C213 OBJECTIVE ASSESMENT ACCOUNTING FOR DESCIO
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WGU C213 OBJECTIVE ASSESMENT ACCOUNTING FOR DESCIO
WGU C213 OBJECTIVE ASSESMENT ACCOUNTING FOR DESCION MAKERS EXAM GUIDE |BRAND NEW EXAM QUESTIONS AND CORRECT ANSWERS ALL GRADED A+|GUARANTEED SUCCESS|LATEST UPDATE FOR 2025
Understanding of a business increases as one associates the individual asset, liability, and equity accounts with the ...
WGU C213 OBJECTIVE ASSESMENT ACCOUNTING
FOR DESCION MAKERS EXAM GUIDE 2024-
2025|BRAND NEW EXAM QUESTIONS AND
CORRECT ANSWERS ALL GRADED
A+|GUARANTEED SUCCESS|LATEST UPDATE FOR
2025
Understanding of a business increases as one associates the individual asset, liability,
and equity accounts with the underlying business activities that give rise to them.
T/F - ANSWER-✔True
Assets and liabilities are generally classified as _______________ or _________
__________. - ANSWER-✔current or long term.
Current Asset - ANSWER-✔one that is expected to be used within one year of the
balance sheet date.
Long term assets include - ANSWER-✔property, plant and equipment, investments
in other companies, and bonds or notes receivable
Current Liabilities - ANSWER-✔liabilities due within a short time, usually within a
year
long-term debt - ANSWER-✔a liability that falls due beyond one year from the date
of the financial statements
Companies can issue what two kinds of stock? - ANSWER-✔common and preferred
Common stockholders are the true owners of a business. T/F - ANSWER-✔True
Preferred stockholders give up some of the rights of ownership enjoyed by common
stockholders in exchange for some of the safety promised to creditors. T/F -
ANSWER-✔True
, Companies usually provide balance sheets for at least __________ years, with the
statements shown in comparative, side-by-side format. - ANSWER-✔Two
The first item in a U.S. balance sheet is usually __________. - ANSWER-✔Cash
The first item in a NON-U.S. countries balance sheet is usually
________________________. - ANSWER-✔Long term assets
The order of presentation in a standard balance sheet is? - ANSWER-✔current
assets, long-term assets, current liabilities, long-term liabilities, and stockholders'
equity
What is the difference between current assets and liabilities called? - ANSWER-
✔Working capital
Recognition - ANSWER-✔the process of condensing all estimates and judgments
into one number and reporting that one number in the formal financial statements.
Disclosure - ANSWER-✔describing details in a narrative note.
____________________ is the preferred method of reporting financial information.
- ANSWER-✔Recognition
Individual transactions impacting balance sheets can be analyzed by remembering
that the accounting equation (_________=__________ + ___________) is always
maintained. - ANSWER-✔Assets = Liabilities + Owners' Equity
Transaction analysis - ANSWER-✔the process of determining how an economic
event impacts financial statements.
The discipline imposed by the mathematical necessity of maintaining the accounting
equation helps to ensure that all dimensions of the impact of an event on financial
statements have been considered. T/F - ANSWER-✔True
Transaction analysis is NOT a useful exercise in critically and systematically analyzing
the impact of business events on a company's reported financial performance and
position. T/F - ANSWER-✔False. Transaction is very useful
Asset Mix - ANSWER-✔The proportion of total assets in each asset category, is
determined to a large degree by the industry in which the company operates.
Net Income - ANSWER-✔The amount by which revenues exceed expenses.
The primary categories of income statement items are - ANSWER-✔revenues,
expenses, gains, and losses.
,Income statement items that do not relate to a company's continuing operations
are - ANSWER-✔income from discontinued operations and extraordinary items.
Individual transactions impacting income can be analyzed using the expanded
accounting equation, which is: - ANSWER-✔Assets = Liabilities + Paid-in Capital +
(Revenues - Expenses - Dividends)
An important use of an income statement is to - ANSWER-✔forecast income in
future periods.
Good forecasting requires an understanding of - ANSWER-✔what underlying factors
determine the level of a revenue or an expense.
Accrual accounting - ANSWER-✔the process that accountants use in adjusting raw
transaction data into refined measures of a firm's economic performance.
One of the important economic contributions made by accountants is the collection
of accrual accounting rules which, when applied to a company's raw cash flow data,
_________________________________________________________. - ANSWER-
✔result in a superior measure of that company's economic performance
What is income? - ANSWER-✔the increase in an individual's or a company's wealth
during a period, or simply money earned
Net Profit Equation - ANSWER-✔Gross Profit - Expenses = Net Profit
Gross Profit Margin - ANSWER-✔Gross profit/sales revenue x 100
Net income - ANSWER-✔the difference between the selling price of the product
and the cost of the product.
Operating Income - ANSWER-✔measures the performance of the fundamental
business operations conducted by a company and is computed as gross profit minus
operating expenses.
A general rule of thumb is that all expenses are operating expenses except
__________ ___________ and __________ _______ _____________. - ANSWER-
✔interest expense and income tax expense.
Another name for operating income is? - ANSWER-✔EBIT (earnings before interest
and taxes)
Operating Income Equation - ANSWER-✔Operating Income = Gross Profit -
Operating Expenses
, Profit generated by fundamental business operations is eaten up by? (also known as
the "pie" available to be split among) - ANSWER-✔Lenders (interest)
Government (income taxes)
Owners (net income)
Income from continuing operations Equation - ANSWER-✔Income from Continuing
Operations = Operating Income (EBIT) - Interest Expense +/- miscellaneous revenues,
expenses, gains, and losses - Income Tax Expense
Income from continuing operations is - ANSWER-✔The economic profit generated
by the part of the business that will continue in operation NEXT YEAR.
income from discontinued operations - ANSWER-✔a company elects to dispose of a
major business segment, the results of the discontinued segment are reported
separately, along with any gain or loss associated with the disposing of the segment.
extraordinary gains and losses - ANSWER-✔Also called extraordinary items, these
gains and losses are both unusual for the company and infrequent.
Extraordinary Items - ANSWER-✔extraordinary items are defined as events or
transactions that are unusual in nature and infrequent in occurrence
Income from continuing operations Equation - ANSWER-✔Net Income = =/- Income
(loss) from Discontinued Operations + / - Extraordinary Gains (Losses)
What is the "bottom line"? - ANSWER-✔The economic profit generated by business
operations this year.
Net Income - ANSWER-✔the accountant's attempt to summarize in one number the
overall economic performance of a company for a given period.
Which of the following would be classified as a current asset?
Capital stock
Accounts receivable
Accounts payable
Land - ANSWER-✔Accounts receivable
Comprehensive Income - ANSWER-✔the number used to reflect an overall measure
of the change in a company's wealth during the period.
Comprehensive income includes items that, in general, arise from changes in market
conditions unrelated to the business operations of a company. The most common of
these items are: - ANSWER-✔* Changes from translating financial statements of
non-U.S. subsidiaries into U.S. dollars, caused by changes in foreign currency
exchange rates
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