WGU C213 Accounting Topic 2 questions
and answers 2026\2027 A+ Grade
Accounting Equation
- correct answer Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income
- correct answer The source of these increased assets
Assets
- correct answer Probable future economic benefit obtained or controlled by a particular entity as a
result of past transactions or events
Balance Sheet
- correct answer A statement of financial position shows the financial resources the company owns or
controls and the claims on those resources
Book Value
- correct answer measured by the amount of owners' equity, is usually less than the company's market
value
Comparability
- correct answer information becomes much more useful when it can be related to a benchmark or
standard.
Conservatism
- correct answer a pervasive factor in accounting, can be summarized as follows: When in doubt,
recognize all losses but don't recognize any gains
Consistency
- correct answer Comparability of accounting data for the same company over time
, Disclosure
- correct answer Convey the details in a narrative note without ever including anything in the financial
statements themselves.
Earnings Per Share (EPS)
- correct answer The amount of net income associated with each share of stock.
Entity Concept
- correct answer The idea that personal financial activity is kept separate from business financial activity
Expenses
- correct answer The amount of assets consumed from the performance of business operations and thus
are the opposite of revenues
External Audit
- correct answer an external check by public accountants that are not part of any one company's
accounting staff, so they can give an independent outside opinion on the quality of the financial
statements of companies that they audit
Financing Activities
- correct answer Those activities whereby cash is obtained from, or repaid to, owners and creditors
Gains
- correct answer Refers to money made on activities outside the normal business of a company
Going Concern Assumption
- correct answer assumption that a company would continue in business for the foreseeable future
Historical Cost Convention
- correct answer assets and liabilities initially are recorded in the accounting system at their original, or
historical, costs. They are not adjusted for subsequent changes in value
and answers 2026\2027 A+ Grade
Accounting Equation
- correct answer Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income
- correct answer The source of these increased assets
Assets
- correct answer Probable future economic benefit obtained or controlled by a particular entity as a
result of past transactions or events
Balance Sheet
- correct answer A statement of financial position shows the financial resources the company owns or
controls and the claims on those resources
Book Value
- correct answer measured by the amount of owners' equity, is usually less than the company's market
value
Comparability
- correct answer information becomes much more useful when it can be related to a benchmark or
standard.
Conservatism
- correct answer a pervasive factor in accounting, can be summarized as follows: When in doubt,
recognize all losses but don't recognize any gains
Consistency
- correct answer Comparability of accounting data for the same company over time
, Disclosure
- correct answer Convey the details in a narrative note without ever including anything in the financial
statements themselves.
Earnings Per Share (EPS)
- correct answer The amount of net income associated with each share of stock.
Entity Concept
- correct answer The idea that personal financial activity is kept separate from business financial activity
Expenses
- correct answer The amount of assets consumed from the performance of business operations and thus
are the opposite of revenues
External Audit
- correct answer an external check by public accountants that are not part of any one company's
accounting staff, so they can give an independent outside opinion on the quality of the financial
statements of companies that they audit
Financing Activities
- correct answer Those activities whereby cash is obtained from, or repaid to, owners and creditors
Gains
- correct answer Refers to money made on activities outside the normal business of a company
Going Concern Assumption
- correct answer assumption that a company would continue in business for the foreseeable future
Historical Cost Convention
- correct answer assets and liabilities initially are recorded in the accounting system at their original, or
historical, costs. They are not adjusted for subsequent changes in value
