C213 Accounting for Decision Makers-2 WGU Study
Guide Review with Correct Solutions 2023.
Understanding of a business increases as one associates the individual
asset, liability, and equity accounts with the underlying business
activities that give rise to them. T/F - Exact Answer True
Assets and liabilities are generally classified as _______________ or
_________ __________. - Exact Answer current or long term.
Current Asset - Exact Answer one that is expected to be used within
one year of the balance sheet date.
Long term assets include - Exact Answer property, plant and
equipment, investments in other companies, and bonds or notes
receivable
Current Liabilities - Exact Answer liabilities due within a short time,
usually within a year
long-term debt - Exact Answer a liability that falls due beyond one year
from the date of the financial statements
,C213 Accounting for Decision Makers-2 WGU Study
Guide Review with Correct Solutions 2023.
Companies can issue what two kinds of stock? - Exact Answer common
and preferred
Common stockholders are the true owners of a business. T/F - Exact
Answer True
Preferred stockholders give up some of the rights of ownership enjoyed
by common stockholders in exchange for some of the safety promised
to creditors. T/F - Exact Answer True
Companies usually provide balance sheets for at least __________
years, with the statements shown in comparative, side-by-side format. -
Exact Answer Two
The first item in a U.S. balance sheet is usually __________. - Exact
Answer Cash
The first item in a NON-U.S. countries balance sheet is usually
________________________. - Exact Answer Long term assets
,C213 Accounting for Decision Makers-2 WGU Study
Guide Review with Correct Solutions 2023.
The order of presentation in a standard balance sheet is? - Exact
Answer current assets, long-term assets, current liabilities, long-term
liabilities, and stockholders' equity
What is the difference between current assets and liabilities called? -
Exact Answer Working capital
Recognition - Exact Answer the process of condensing all estimates and
judgments into one number and reporting that one number in the
formal financial statements.
Disclosure - Exact Answer describing details in a narrative note.
____________________ is the preferred method of reporting financial
information. - Exact Answer Recognition
Individual transactions impacting balance sheets can be analyzed by
remembering that the accounting equation (_________=__________ +
___________) is always maintained. - Exact Answer Assets = Liabilities +
Owners' Equity
, C213 Accounting for Decision Makers-2 WGU Study
Guide Review with Correct Solutions 2023.
Transaction analysis - Exact Answer the process of determining how an
economic event impacts financial statements.
The discipline imposed by the mathematical necessity of maintaining
the accounting equation helps to ensure that all dimensions of the
impact of an event on financial statements have been considered. T/F -
Exact Answer True
Transaction analysis is NOT a useful exercise in critically and
systematically analyzing the impact of business events on a company's
reported financial performance and position. T/F - Exact Answer False.
Transaction is very useful
Asset Mix - Exact Answer The proportion of total assets in each asset
category, is determined to a large degree by the industry in which the
company operates.
Net Income - Exact Answer The amount by which revenues exceed
expenses.
Guide Review with Correct Solutions 2023.
Understanding of a business increases as one associates the individual
asset, liability, and equity accounts with the underlying business
activities that give rise to them. T/F - Exact Answer True
Assets and liabilities are generally classified as _______________ or
_________ __________. - Exact Answer current or long term.
Current Asset - Exact Answer one that is expected to be used within
one year of the balance sheet date.
Long term assets include - Exact Answer property, plant and
equipment, investments in other companies, and bonds or notes
receivable
Current Liabilities - Exact Answer liabilities due within a short time,
usually within a year
long-term debt - Exact Answer a liability that falls due beyond one year
from the date of the financial statements
,C213 Accounting for Decision Makers-2 WGU Study
Guide Review with Correct Solutions 2023.
Companies can issue what two kinds of stock? - Exact Answer common
and preferred
Common stockholders are the true owners of a business. T/F - Exact
Answer True
Preferred stockholders give up some of the rights of ownership enjoyed
by common stockholders in exchange for some of the safety promised
to creditors. T/F - Exact Answer True
Companies usually provide balance sheets for at least __________
years, with the statements shown in comparative, side-by-side format. -
Exact Answer Two
The first item in a U.S. balance sheet is usually __________. - Exact
Answer Cash
The first item in a NON-U.S. countries balance sheet is usually
________________________. - Exact Answer Long term assets
,C213 Accounting for Decision Makers-2 WGU Study
Guide Review with Correct Solutions 2023.
The order of presentation in a standard balance sheet is? - Exact
Answer current assets, long-term assets, current liabilities, long-term
liabilities, and stockholders' equity
What is the difference between current assets and liabilities called? -
Exact Answer Working capital
Recognition - Exact Answer the process of condensing all estimates and
judgments into one number and reporting that one number in the
formal financial statements.
Disclosure - Exact Answer describing details in a narrative note.
____________________ is the preferred method of reporting financial
information. - Exact Answer Recognition
Individual transactions impacting balance sheets can be analyzed by
remembering that the accounting equation (_________=__________ +
___________) is always maintained. - Exact Answer Assets = Liabilities +
Owners' Equity
, C213 Accounting for Decision Makers-2 WGU Study
Guide Review with Correct Solutions 2023.
Transaction analysis - Exact Answer the process of determining how an
economic event impacts financial statements.
The discipline imposed by the mathematical necessity of maintaining
the accounting equation helps to ensure that all dimensions of the
impact of an event on financial statements have been considered. T/F -
Exact Answer True
Transaction analysis is NOT a useful exercise in critically and
systematically analyzing the impact of business events on a company's
reported financial performance and position. T/F - Exact Answer False.
Transaction is very useful
Asset Mix - Exact Answer The proportion of total assets in each asset
category, is determined to a large degree by the industry in which the
company operates.
Net Income - Exact Answer The amount by which revenues exceed
expenses.
