WGU C213 - ACCOUNTING FOR DECISION
MAKERS QUESTIONS & ACTUAL ANSWERS
1. Which term is defined as the residual interest in the net Owners'
equity
assets of a company?
2. A corporation has total liabilities of $300 $350 million
million, total owners' equity of $100 million,
and current assets of
$50 million. What is the value of the firm's
long term assets?
In 2014, a company
3. Which situation should result in revenue pro-
recognition
on the income statement for the year ending 12/31/14 vides
services to a cus-
if the firm is using accrual-basis accounting? tomer for which cash
will be collected the
next year (2015).
4. Which category on the statement of cash Cash flows from
flows sum-marizes cash receipts and financing activities
payments to owners and creditors of the
company?
Material
5. Information that is enough to make a
difference is referred to as
6. Information having to do with the matter at hand Relevant
7. Information related to recognizing losses as they occur
Conservatism
8. Information that can be verified Reliable
1/
14
, WGU C213 - ACCOUNTING FOR DECISION
MAKERS QUESTIONS & ACTUAL ANSWERS
9. Order the steps in the decision cycle from PAGMI
first (1) to last (5). 1. Prepare financial
state-ments
2. Analyze financial
state-ments
3. gather
information
2/
14
MAKERS QUESTIONS & ACTUAL ANSWERS
1. Which term is defined as the residual interest in the net Owners'
equity
assets of a company?
2. A corporation has total liabilities of $300 $350 million
million, total owners' equity of $100 million,
and current assets of
$50 million. What is the value of the firm's
long term assets?
In 2014, a company
3. Which situation should result in revenue pro-
recognition
on the income statement for the year ending 12/31/14 vides
services to a cus-
if the firm is using accrual-basis accounting? tomer for which cash
will be collected the
next year (2015).
4. Which category on the statement of cash Cash flows from
flows sum-marizes cash receipts and financing activities
payments to owners and creditors of the
company?
Material
5. Information that is enough to make a
difference is referred to as
6. Information having to do with the matter at hand Relevant
7. Information related to recognizing losses as they occur
Conservatism
8. Information that can be verified Reliable
1/
14
, WGU C213 - ACCOUNTING FOR DECISION
MAKERS QUESTIONS & ACTUAL ANSWERS
9. Order the steps in the decision cycle from PAGMI
first (1) to last (5). 1. Prepare financial
state-ments
2. Analyze financial
state-ments
3. gather
information
2/
14
