WGU c213 test Questions and Answers 100%
Solved
When work has been done and collectability of cash can be reasonably assured According
to accounting rules, when should revenue be recognized?
Operating activities those activities that comprise the day-to-day operations of a business.
Investing activities The purchase and sale of long-term assets such as land and equipment
are known as _______________.
Financing activities those activities through which cash is obtained from, or repaid to,
creditors and investors
information on the accounting assumptions used in preparing the statements and supplemental
information not included in the statements themselves What information do the notes to
accounting statements provide?
1. Summary of accounting policy
, 2. Additional info about summary totals
3. Disclosure of info not included in summary
4. Supplemental disclosure required by FASB or SEC What are the 4 general types of
accounting notes?
Conservatism the practice of recognizing all losses but not recognizing gains until they are
certain
Materiality the concept that weighs whether a certain dollar amount is large enough to
make a difference to anyone
Articulation the idea that the three primary financial statements are interrelated
Debt Ratio
Total Liabilities/
Total Assets Percentage of funds needed to purchase assets that were obtained through
borrowing
Solved
When work has been done and collectability of cash can be reasonably assured According
to accounting rules, when should revenue be recognized?
Operating activities those activities that comprise the day-to-day operations of a business.
Investing activities The purchase and sale of long-term assets such as land and equipment
are known as _______________.
Financing activities those activities through which cash is obtained from, or repaid to,
creditors and investors
information on the accounting assumptions used in preparing the statements and supplemental
information not included in the statements themselves What information do the notes to
accounting statements provide?
1. Summary of accounting policy
, 2. Additional info about summary totals
3. Disclosure of info not included in summary
4. Supplemental disclosure required by FASB or SEC What are the 4 general types of
accounting notes?
Conservatism the practice of recognizing all losses but not recognizing gains until they are
certain
Materiality the concept that weighs whether a certain dollar amount is large enough to
make a difference to anyone
Articulation the idea that the three primary financial statements are interrelated
Debt Ratio
Total Liabilities/
Total Assets Percentage of funds needed to purchase assets that were obtained through
borrowing
