WGU C213 OBJECTIVE ASSESSMENT
ACCOUNTING FOR DECISION MAKERS 2
PREPARATION
◉ Articulation. Answer: The idea that certain figures on a operating
statement help explain changes in figures on comparative balance
sheets is referred to as
◉ Comparability. Answer: The idea that information becomes more
useful when it can be related to a benchmark or a standard is
referred to
◉ Materiality. Answer: Whether an item is big enough that proper
accounting will make a difference to users of accounting information
is referred to is
◉ Relevance. Answer: The notion that information will be more
useful if it will impact a decision is referred to as
◉ Investing decisions. Answer: External users of financial
statements use financial statement analysis for
, ◉ Financial Statement Analysis involves relationships and trends.
Answer: Which of the following statements best describes financial
statements analysis?
◉ Both past values and values for other firms in the same industry.
Answer: Financial statement analysis is greatly enhanced when
financial ratios are compared with
◉ Both diagnosis and prognosis. Answer: Which of the following is
one of the purposes of financial statement analysis
◉ Financial ratios. Answer: Relationships between financial
statement amounts are called
◉ The prediction of how a business will perform in the future.
Answer: When analyzing financial statements, prognosis is
◉ Current ratio. Answer: What ratio is used to measure a firms
liquidity?
◉ Current ratio. Answer: Which of the following is a measure of the
liquid position of a corporation?
ACCOUNTING FOR DECISION MAKERS 2
PREPARATION
◉ Articulation. Answer: The idea that certain figures on a operating
statement help explain changes in figures on comparative balance
sheets is referred to as
◉ Comparability. Answer: The idea that information becomes more
useful when it can be related to a benchmark or a standard is
referred to
◉ Materiality. Answer: Whether an item is big enough that proper
accounting will make a difference to users of accounting information
is referred to is
◉ Relevance. Answer: The notion that information will be more
useful if it will impact a decision is referred to as
◉ Investing decisions. Answer: External users of financial
statements use financial statement analysis for
, ◉ Financial Statement Analysis involves relationships and trends.
Answer: Which of the following statements best describes financial
statements analysis?
◉ Both past values and values for other firms in the same industry.
Answer: Financial statement analysis is greatly enhanced when
financial ratios are compared with
◉ Both diagnosis and prognosis. Answer: Which of the following is
one of the purposes of financial statement analysis
◉ Financial ratios. Answer: Relationships between financial
statement amounts are called
◉ The prediction of how a business will perform in the future.
Answer: When analyzing financial statements, prognosis is
◉ Current ratio. Answer: What ratio is used to measure a firms
liquidity?
◉ Current ratio. Answer: Which of the following is a measure of the
liquid position of a corporation?
