WGU C909 EXAM ELEMENTARY
READING METHODS &
INTERVENTIONS OA EXAM
2024 LATEST QUESTIONS
What two items of information are revealed on the balance sheet? - CORRECT
ANSWER>>>>ownership and debt
Which term is defined as the residual interest in the net assets of a company? -
CORRECT ANSWER>>>>owner's equity
A corporation has total liabilities of $300 million, total owners' equity of $100 million, and
current assets of $50 million.What is the value of the firm's long-term assets? -
CORRECT ANSWER>>>>$350 million
Which situation should result in revenue recognition on the income statement for the
year ending 12/31/14 if the firm is using accrual-basis accounting? - CORRECT
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? - CORRECT ANSWER>>>>Cash
flows from financing activities
Where would an investor find a summary of a company's significant accounting
policies? - CORRECT ANSWER>>>>In the notes to financial statements
Which assurance does an external audit report provide for its readers? - CORRECT
ANSWER>>>>The company's financial statements fairly reflect its financial position
reliable - CORRECT ANSWER>>>>information that can be verified
relevant - CORRECT ANSWER>>>>Information having to do with the matter at hand
material - CORRECT ANSWER>>>>Information that is important enough to make a
difference
conservatism - CORRECT ANSWER>>>>Information related to recognizing losses as
they occur
Order the steps in the decision cycle from first (1) to last (5). - CORRECT
ANSWER>>>>1. prepare financial statement
2. analyze financial statement
, 3. gather info
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? - CORRECT
ANSWER>>>>11.0
What does it mean if a company has a debt ratio of 101.5%? - CORRECT
ANSWER>>>>The company has 1.5% more total liabilities than total assets.
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same? - CORRECT ANSWER>>>>Continual decrease in sales
Which two cash flow adequacy ratios represent a cash cow? - CORRECT
ANSWER>>>>$6,991 / $5,486
$5,220 / $1,875
Which formula yields a cash times interest earned ratio of 11? - CORRECT
ANSWER>>>>Cash before interest and taxes of $11,000 / cash paid for interest of
$1,000
Which two values affect the measurement of net income? - CORRECT
ANSWER>>>>operating expenses and ordinary gains and losses
Which two items' subtotals are included in a multi-step income statement? - CORRECT
ANSWER>>>>gross profit and income from operations
A furniture company using accrual accounting purchased 20 sofas in November 2011.
In December 2011, 8 of the 20 sofas were sold to customers. The customers all signed
contracts agreeing to pay half the amount owed in February 2012 and the remaining
half in March 2012. At the time of sale, the company was reasonably sure the
customers would pay the amount owed.The furniture company pays its salespeople a
commission on each sofa sold, with commissions for December 2011 sales paid in
January 2012.The furniture company paid $3,000 for advertising that ran in the local
newspaper in November 2011.In which month should advertising costs be expensed? -
CORRECT ANSWER>>>>Novemeber 2011
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