WGU C213 OBJECTIVE ASSESSMENTS, PRE- ASSESSMENTS & FINAL EXAMS–
ACCOUNTING FOR DECISION MAKER (LATEST 2026/ 2027 UPDATES STUDY BUNDLE
PACKAGE WITH COMPLETE SOLUTIONS) 100% VERIFIED QUESTIONS & ANSWERS |
GRADE A
1. Assets-to-equity ratio is computed as assets divided by equity and is interpreted as
the number of dollars of assets a company is able to acquire using each dollar
invested by stockholders - ANSWERS-In terms of ROE, define leverage.
2. The profitability of each dollar in sales and turnover is the degree to which assets are
used to generate sales - ANSWERS-Margin
NOTE: Companies with a low margin can still earn an acceptable level of return
on assets if they have a high turnover.
3. Current asset - ANSWERS-an asset that is expected to be used within one year of the
balance sheet date
4. Cash, accounts receivable, and inventory - ANSWERS-What are the most common
current assets?
5. Property, plant, and equipment (PPE) - ANSWERS-What are the primary long-term
assets?
6. Companies report the intangibles that they have purchased from other companies
but not the intangibles that they have developed themselves - ANSWERS-Which
intangible assets are reported on the balance sheet?
7. Current liability - ANSWERS-those obligations that are expected to be paid or
otherwise satisfied within one year
8. Long-term bank loans, mortgages, and bonds - ANSWERS-What are 3 common
sources of long-term debt?
9. Common stockholders are the true owners of a business; Preferred stockholders give
up some of the rights of ownership enjoyed by common stockholders in exchange for
some of the safety promised to creditors - ANSWERS-What is the difference between
a common stockholder and a preferred stockholder?
10. Retained Earnings - ANSWERS-the cumulative amount of corporate profits that have
been retained within the business rather than being paid out to stockholders as
dividends
11. Treasury stock - ANSWERS-the amount the corporation has spent to buy back its own
shares from stockholders
12. 2 years, Comparative side-by-side format - ANSWERS-How many years worth of
balance sheets does a company usually provide and how are they typically
formatted?
, 13. Cash - ANSWERS-What is the first item that is usually listed on a U.S. balance sheet?
14. Long-term assets - ANSWERS-What is the first item that is usually listed on a non-U.S.
balance sheet?
15. Working capital - ANSWERS-The difference of current assets-current liabilities
16. Recognition (In terms of accounting) - ANSWERS-the process of condensing all
estimates and judgments into one number and reporting that one number in the
formal financial statements
17. Disclosure - ANSWERS-An alternative way to report information, describing details in
a narrative note
18. Transaction Analysis - ANSWERS-is the process of determining how an economic
event impacts financial statements
19. Accounting - ANSWERS-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
20. Bookkeeping - ANSWERS-the preservation of a systematic, quantitative record of an
activity
21. Accounting system - ANSWERS-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
22. Accounting information - ANSWERS-Info that is intended to be useful in making
decisions about the future.
23. The balance sheet, the income statement, and the statement of cashflows -
ANSWERS-What are the three primary financial statements?
24. External Users - ANSWERS-Who is financial accounting information primarily
prepared for and used by?
25. Managerial Accounting - ANSWERS-the name given to accounting systems designed
for internal users
26. Balance Sheet - ANSWERS-Reports a company's assets, liabilities, and owners'
equity
27. Income Statement - ANSWERS-reports the amount of net income earned by a
company during a period
ACCOUNTING FOR DECISION MAKER (LATEST 2026/ 2027 UPDATES STUDY BUNDLE
PACKAGE WITH COMPLETE SOLUTIONS) 100% VERIFIED QUESTIONS & ANSWERS |
GRADE A
1. Assets-to-equity ratio is computed as assets divided by equity and is interpreted as
the number of dollars of assets a company is able to acquire using each dollar
invested by stockholders - ANSWERS-In terms of ROE, define leverage.
2. The profitability of each dollar in sales and turnover is the degree to which assets are
used to generate sales - ANSWERS-Margin
NOTE: Companies with a low margin can still earn an acceptable level of return
on assets if they have a high turnover.
3. Current asset - ANSWERS-an asset that is expected to be used within one year of the
balance sheet date
4. Cash, accounts receivable, and inventory - ANSWERS-What are the most common
current assets?
5. Property, plant, and equipment (PPE) - ANSWERS-What are the primary long-term
assets?
6. Companies report the intangibles that they have purchased from other companies
but not the intangibles that they have developed themselves - ANSWERS-Which
intangible assets are reported on the balance sheet?
7. Current liability - ANSWERS-those obligations that are expected to be paid or
otherwise satisfied within one year
8. Long-term bank loans, mortgages, and bonds - ANSWERS-What are 3 common
sources of long-term debt?
9. Common stockholders are the true owners of a business; Preferred stockholders give
up some of the rights of ownership enjoyed by common stockholders in exchange for
some of the safety promised to creditors - ANSWERS-What is the difference between
a common stockholder and a preferred stockholder?
10. Retained Earnings - ANSWERS-the cumulative amount of corporate profits that have
been retained within the business rather than being paid out to stockholders as
dividends
11. Treasury stock - ANSWERS-the amount the corporation has spent to buy back its own
shares from stockholders
12. 2 years, Comparative side-by-side format - ANSWERS-How many years worth of
balance sheets does a company usually provide and how are they typically
formatted?
, 13. Cash - ANSWERS-What is the first item that is usually listed on a U.S. balance sheet?
14. Long-term assets - ANSWERS-What is the first item that is usually listed on a non-U.S.
balance sheet?
15. Working capital - ANSWERS-The difference of current assets-current liabilities
16. Recognition (In terms of accounting) - ANSWERS-the process of condensing all
estimates and judgments into one number and reporting that one number in the
formal financial statements
17. Disclosure - ANSWERS-An alternative way to report information, describing details in
a narrative note
18. Transaction Analysis - ANSWERS-is the process of determining how an economic
event impacts financial statements
19. Accounting - ANSWERS-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
20. Bookkeeping - ANSWERS-the preservation of a systematic, quantitative record of an
activity
21. Accounting system - ANSWERS-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
22. Accounting information - ANSWERS-Info that is intended to be useful in making
decisions about the future.
23. The balance sheet, the income statement, and the statement of cashflows -
ANSWERS-What are the three primary financial statements?
24. External Users - ANSWERS-Who is financial accounting information primarily
prepared for and used by?
25. Managerial Accounting - ANSWERS-the name given to accounting systems designed
for internal users
26. Balance Sheet - ANSWERS-Reports a company's assets, liabilities, and owners'
equity
27. Income Statement - ANSWERS-reports the amount of net income earned by a
company during a period
