WGU C213 Accounting for Decision Makers Final Exam (Latest 2023/ 2024) | Questions and Verified Answers | 100% Correct

WGU C213 Accounting for Decision Makers Final Exam (Latest 2023/ 2024) | Questions and Verified Answers | 100% Correct Q: Given the following information, compute operating income - Cost of Goods Sold $2,000 Extraordinary Item -170 Income Taxes 350 Interest Expense 200 Operating Expenses 1,500 Sales 5,500 Answer: Correct Answer $2,000 $5,500 - $2,000 - $1,500 = $2,000 Q: Given the following information, compute comprehensive income - Extraordinary Loss -80 Income Taxes 150 Interest Expense 100 Operating Income 1,500 Unrealized Gain not included in Net Income 120 Answer: Correct Answer $1,290 $1,500 - $150 - $100 - $80 +120 = $1,290 Q: The proper order on an income statement for the various measures of income is - Answer: Correct Answer gross profit, operating income, income from continuing operations, net in- come, comprehensive income Q: The following information was taken from the records of Tellers Corporation for the month ended December 31, 2012: Advertising expense $20,625 Income tax expense 13,095 Accounts payable 13,450 Dividends paid 14,125 Retained earnings (12/1/12) 57,860 Consulting fees revenue 93,550 Rent expense 11,728 Supplies expense 16,917 Given the above information, net income? Answer: Correct Answer $31,185 Net income:$93,550 - $20,625 - $13,095 - $11,728 - $16,917 = $31,185 Q: When a company determines to get out of a specific line of business? Answer: Correct Answer Revenues and expenses from that line of business are excluded from the company's recurring revenues and expenses when preparing an income state- ment. Q: The following information was taken from the records of Tellers Corporation for the month ended December 31, 2012: Advertising expense $20,625 Income tax expense 13,095 Accounts payable 13,450 Dividends paid 14,125 Retained earnings (12/1/12) 57,860 Consulting fees revenue 93,550 Rent expense 11,728 Supplies expense 16,917 If Tellers has 2,100 shares of stock outstanding, earnings per share is approximate- ly? Answer: Correct Answer $14.85 Net income: $93,550 - $20,625 - $13,095 - $11,728 - $16,917 = $31,185 Earnings per share: $31,185 / 2,100 shares = $14.85 Q: Earnings per share is equal to Correct Answer Answer: Net income divided by total number of shares of stock outstanding income divided by total number of shares of stock outstanding Q: Which of the following is a revenue generating activity? Answer: * Selling a product - Correct Answer Paying rent Borrowing money from a bank Selling capital stock Q: For a gain or loss to be classified as extraordinary, it must be what? Answer: Correct Answer both unusual and infrequent Q: With a multiple-step income statement all revenues are grouped together, all expenses are grouped together, and net income is computed as the difference between the two. True/False Answer: False Q: Which of the following is NOT an acceptable basis for the recognition of expenses? Answer: Systematic and rational allocation Direct matching *Cash disbursement Immediate recognition Q: The revenue principle states that revenue should be recognized at a point when Answer: Correct Answer an exchange transaction involving goods and services has occurred and the earnings process is essentially complete.