WGU C213 Questions and Answers Graded
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Cash Flow Adequacy Ratio Cash from operations divided by expenditures for fixed asset
additions and acquisitions of new businesses
Cash times Interest Earned Ratio A financial analysis tool that indicates the interest
payment ability of an entity
Certified Public Accountant A person who has taken a minimum number of college-level
accounting classes, has passed the dreaded CPA exam, and has met other requirements set by his
or her state.
Common Stock Stockholders' equity investment
Common-size Financial Statements All amounts for a given year being shown as a
percentage of that denominator for the year.
,Comparability Information that becomes much more useful when it can be related to a
benchmark or standard
Comprehensive Income The number used to reflect an overall measure of the change in a
company's wealth during the period
Conservatism A pervasive factor in accounting, can be summarized as follows: When in
doubt, recognize all losses but don't recognize any gains.
Consistency The BLANK principle states that, once you adopt an accounting principle or
method, continue to follow it consistently in future accounting periods.
Contribution Margin (CM) The difference between total sales and variable costs; the
portion of sales revenue available to cover fixed costs and provide a profit.
Contribution Margin (CM) Ratio The percentage of net sales revenue left after variable
costs are deducted; the contribution margin divided by net sales revenue.
Control Activities Policies and procedures used by management to meet their objectives.
,Control Environment The actions, policies, and procedures that reflect the overall
attitudes of top management about control and its importance to the entity.
Control Procedures Policies and procedures used by management to meet their objectives.
Controlling Implementing management plans and identifying how plans compare with
actual performance.
Cost Behavior The way a cost is affected by changes in activity levels.
Cost Drivers Numerical measure used to reflect the amount of a specific cost that is
associated with a particular activity.
Cost Pool Total cost being generated by a specific overhead cost activity.
Cost of Goods Sold When a business sells goods to customers, the cost of the goods sold
is recorded as an expense
, Cost-Volume-Profit (C-V-P) Analysis Techniques for determining how changes in
revenues, costs, and level of activity affect the profitability of an organization.
Current Assets Cash, accounts receivable, and inventory.
Current Liabilities Those obligations expected to be paid within one year, the most
common being accounts payable.
Current Portion of Long-term Debt Some liabilities, such as mortgages, are payable in
equal monthly installments over a specified number of years. The portion of these liabilities that
is payable within 12 months from the balance sheet date.
Current Ratio A comparison of current assets (cash, receivables, and inventory) with
current liabilities. It is computed by dividing total current assets by total current liabilities.
Debt Ratio A frequently used measure of leverage, computed as total liabilities divided by
total assets.
The higher this ratio, the more leveraged the company is, implying greater financial risk
A+
Cash Flow Adequacy Ratio Cash from operations divided by expenditures for fixed asset
additions and acquisitions of new businesses
Cash times Interest Earned Ratio A financial analysis tool that indicates the interest
payment ability of an entity
Certified Public Accountant A person who has taken a minimum number of college-level
accounting classes, has passed the dreaded CPA exam, and has met other requirements set by his
or her state.
Common Stock Stockholders' equity investment
Common-size Financial Statements All amounts for a given year being shown as a
percentage of that denominator for the year.
,Comparability Information that becomes much more useful when it can be related to a
benchmark or standard
Comprehensive Income The number used to reflect an overall measure of the change in a
company's wealth during the period
Conservatism A pervasive factor in accounting, can be summarized as follows: When in
doubt, recognize all losses but don't recognize any gains.
Consistency The BLANK principle states that, once you adopt an accounting principle or
method, continue to follow it consistently in future accounting periods.
Contribution Margin (CM) The difference between total sales and variable costs; the
portion of sales revenue available to cover fixed costs and provide a profit.
Contribution Margin (CM) Ratio The percentage of net sales revenue left after variable
costs are deducted; the contribution margin divided by net sales revenue.
Control Activities Policies and procedures used by management to meet their objectives.
,Control Environment The actions, policies, and procedures that reflect the overall
attitudes of top management about control and its importance to the entity.
Control Procedures Policies and procedures used by management to meet their objectives.
Controlling Implementing management plans and identifying how plans compare with
actual performance.
Cost Behavior The way a cost is affected by changes in activity levels.
Cost Drivers Numerical measure used to reflect the amount of a specific cost that is
associated with a particular activity.
Cost Pool Total cost being generated by a specific overhead cost activity.
Cost of Goods Sold When a business sells goods to customers, the cost of the goods sold
is recorded as an expense
, Cost-Volume-Profit (C-V-P) Analysis Techniques for determining how changes in
revenues, costs, and level of activity affect the profitability of an organization.
Current Assets Cash, accounts receivable, and inventory.
Current Liabilities Those obligations expected to be paid within one year, the most
common being accounts payable.
Current Portion of Long-term Debt Some liabilities, such as mortgages, are payable in
equal monthly installments over a specified number of years. The portion of these liabilities that
is payable within 12 months from the balance sheet date.
Current Ratio A comparison of current assets (cash, receivables, and inventory) with
current liabilities. It is computed by dividing total current assets by total current liabilities.
Debt Ratio A frequently used measure of leverage, computed as total liabilities divided by
total assets.
The higher this ratio, the more leveraged the company is, implying greater financial risk
