C213 WGU, Key Points exam with all solutions
Debt Ratio Total Liabilities/Total Assets
Current Ratio Current Assets/Current Liabilities. Only need a balance sheet.
Return on Sales Net Income/Sales. Only need income statement
Asset Turnover Sales/Total Assets
Return on Equity Net Income/Stockholder's equity. Balance and Income
Statements used.
Price-Earnings Ratio (PE) Market Value fo Shares/Net Income
Accounting is the recording of the day-to-day financial activities of a
company and the organization of that information into
summary reports used to evaluate the company's financial
status.
C213 WGU, Key Points exam with all solutions
, C213 WGU, Key Points exam with all solutions
Bookeeping is the preservation of a systematic, quantitative record of an
activity. Without bookkeeping, good business is impossible.
An accounting system is used by a business to handle routine
bookkeeping tasks and to structure the information so it can
be used to evaluate the performance and financial status of
the business. Accounting information is intended to be useful
in making decisions about the future.
The focus of financial accounting is the three primary financial statements: the balance sheet, the
income statement, and the statement of cash flows.
Financial accounting information is provided for, and used by, external users. Managerial
accounting is the name given to accounting systems designed
for internal users. The information provided by financial
accounting is summarized in the financial statements:
The balance sheet reports a company's assets, liabilities, and
owners' equity.
The income statement reports the amount of net income
earned by a company during a period. Net income is the
excess of a company's revenues over its expenses.
The statement of cash flows reports the amount of cash
collected and paid out by a company in the following three
types of activities: operating, investing, and financing.
Among the users of financial accounting lenders, investors, company management, suppliers,
information are customers, employees, competitors, government agencies,
politicians, and the press.
Financial accounting information helps lenders evaluate the cash flows a business can be expected to
generate in the future in order to repay loans. Investors use
the same type of information to assess the attractiveness of
companies as investments. Managers use financial accounting
data to formulate company goals, to compute bonuses for
employees, and to illuminate company weaknesses. Suppliers,
customers, and employees use financial statements to tell
them about the long-run prospects of a company.
Competitors use financial accounting information to reveal
strategic opportunities within their industry. Government
agencies and politicians use financial statement data to
bolster political and regulatory positions for and against
companies. Reporters use financial accounting data as
background information and to indicate which companies are
undergoing significant changes in financial status.
C213 WGU, Key Points exam with all solutions
Debt Ratio Total Liabilities/Total Assets
Current Ratio Current Assets/Current Liabilities. Only need a balance sheet.
Return on Sales Net Income/Sales. Only need income statement
Asset Turnover Sales/Total Assets
Return on Equity Net Income/Stockholder's equity. Balance and Income
Statements used.
Price-Earnings Ratio (PE) Market Value fo Shares/Net Income
Accounting is the recording of the day-to-day financial activities of a
company and the organization of that information into
summary reports used to evaluate the company's financial
status.
C213 WGU, Key Points exam with all solutions
, C213 WGU, Key Points exam with all solutions
Bookeeping is the preservation of a systematic, quantitative record of an
activity. Without bookkeeping, good business is impossible.
An accounting system is used by a business to handle routine
bookkeeping tasks and to structure the information so it can
be used to evaluate the performance and financial status of
the business. Accounting information is intended to be useful
in making decisions about the future.
The focus of financial accounting is the three primary financial statements: the balance sheet, the
income statement, and the statement of cash flows.
Financial accounting information is provided for, and used by, external users. Managerial
accounting is the name given to accounting systems designed
for internal users. The information provided by financial
accounting is summarized in the financial statements:
The balance sheet reports a company's assets, liabilities, and
owners' equity.
The income statement reports the amount of net income
earned by a company during a period. Net income is the
excess of a company's revenues over its expenses.
The statement of cash flows reports the amount of cash
collected and paid out by a company in the following three
types of activities: operating, investing, and financing.
Among the users of financial accounting lenders, investors, company management, suppliers,
information are customers, employees, competitors, government agencies,
politicians, and the press.
Financial accounting information helps lenders evaluate the cash flows a business can be expected to
generate in the future in order to repay loans. Investors use
the same type of information to assess the attractiveness of
companies as investments. Managers use financial accounting
data to formulate company goals, to compute bonuses for
employees, and to illuminate company weaknesses. Suppliers,
customers, and employees use financial statements to tell
them about the long-run prospects of a company.
Competitors use financial accounting information to reveal
strategic opportunities within their industry. Government
agencies and politicians use financial statement data to
bolster political and regulatory positions for and against
companies. Reporters use financial accounting data as
background information and to indicate which companies are
undergoing significant changes in financial status.
C213 WGU, Key Points exam with all solutions
