WGU C213 Accounting for Decision Makers - Important Terms
Questions with Correct Answers 100% and Answers with Verified
Solutions | Latest 2026 Update
Q: has already been reported in the income statement but which, because of the tax
law, has not
Answer:
yet been taxed.
Stockholders Equity The difference between assets and liabilities in a corporation.
Common Stock Stockholders equity investment.
Per Value The market value of the shares at issuance.
Addition Paid-in Capital Invested by stockholders that exceeds the par value of the
issued
shares.
Preferred Stock Stockholders equity investment.
Retained Earnings (2) The cumulative amount of a corporations profits that have
been
reinvested on behalf of the stockholders.
, Q: Treasury Stock (2) The repurchased shares, when a company buys back its own
shares.
Answer:
Accumulated Other Comprehensive Income The grouped together and reported
changes
which companies experience increases and decreases in equity each year because of
the
movement of market prices or exchange rates.
Derivative A financial instrument, such as an option or a future, that derives its value
from
the moment of a price, an exchanged rate, or an interest rate associated with some
other item.
Recognition Boil down all the estimates and judgements into one number and report
that
one number in the formal financial statements.
Disclosure (2) Convey the details in a narrative note without ever including anything
in the
financial statements themselves.
Valuation Once it has been determined that an item should be recognized in financial
statements, the question then arises about what dollar amount to assign to the item.
Transaction Analysis The process of determining how an economic event impacts the
financial statements.
Executory Contract It is an exchange of promises about the future.
Asset Mix The proportion of total assets in each asset category, is determined to a
large
degree by the industry in which the company operates.
Financing Mix The percentage of total financing (liabilities plus equity) in each
individual
category.
Questions with Correct Answers 100% and Answers with Verified
Solutions | Latest 2026 Update
Q: has already been reported in the income statement but which, because of the tax
law, has not
Answer:
yet been taxed.
Stockholders Equity The difference between assets and liabilities in a corporation.
Common Stock Stockholders equity investment.
Per Value The market value of the shares at issuance.
Addition Paid-in Capital Invested by stockholders that exceeds the par value of the
issued
shares.
Preferred Stock Stockholders equity investment.
Retained Earnings (2) The cumulative amount of a corporations profits that have
been
reinvested on behalf of the stockholders.
, Q: Treasury Stock (2) The repurchased shares, when a company buys back its own
shares.
Answer:
Accumulated Other Comprehensive Income The grouped together and reported
changes
which companies experience increases and decreases in equity each year because of
the
movement of market prices or exchange rates.
Derivative A financial instrument, such as an option or a future, that derives its value
from
the moment of a price, an exchanged rate, or an interest rate associated with some
other item.
Recognition Boil down all the estimates and judgements into one number and report
that
one number in the formal financial statements.
Disclosure (2) Convey the details in a narrative note without ever including anything
in the
financial statements themselves.
Valuation Once it has been determined that an item should be recognized in financial
statements, the question then arises about what dollar amount to assign to the item.
Transaction Analysis The process of determining how an economic event impacts the
financial statements.
Executory Contract It is an exchange of promises about the future.
Asset Mix The proportion of total assets in each asset category, is determined to a
large
degree by the industry in which the company operates.
Financing Mix The percentage of total financing (liabilities plus equity) in each
individual
category.
