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WGU C213 Accounting Topic 2 Questions and Correct
Answers/ Latest Update / Already Graded
Accounting Equation
Ans: Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income
Ans: The source of these increased assets
Assets
Ans: Probable future economic benefit obtained or controlled by a particular
entity as a result of past transactions or events
Balance Sheet
Ans: A statement of financial position shows the financial resources the
company owns or controls and the claims on those resources
Book Value
Ans: measured by the amount of owners' equity, is usually less than the
company's market value
Comparability
Ans: information becomes much more useful when it can be related to a
benchmark or standard.
Conservatism
© 2025/ 2026 | ® All rights reserved
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Ans: a pervasive factor in accounting, can be summarized as follows: When in
doubt, recognize all losses but don't recognize any gains
Consistency
Ans: Comparability of accounting data for the same company over time
Disclosure
Ans: Convey the details in a narrative note without ever including anything in
the financial statements themselves.
Earnings Per Share (EPS)
Ans: The amount of net income associated with each share of stock.
Entity Concept
Ans: The idea that personal financial activity is kept separate from business
financial activity
Expenses
Ans: The amount of assets consumed from the performance of business
operations and thus are the opposite of revenues
External Audit
Ans: an external check by public accountants that are not part of any one
company's accounting staff, so they can give an independent outside opinion on
the quality of the financial statements of companies that they audit
Financing Activities
© 2025/ 2026 | ® All rights reserved
WGU C213 Accounting Topic 2 Questions and Correct
Answers/ Latest Update / Already Graded
Accounting Equation
Ans: Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income
Ans: The source of these increased assets
Assets
Ans: Probable future economic benefit obtained or controlled by a particular
entity as a result of past transactions or events
Balance Sheet
Ans: A statement of financial position shows the financial resources the
company owns or controls and the claims on those resources
Book Value
Ans: measured by the amount of owners' equity, is usually less than the
company's market value
Comparability
Ans: information becomes much more useful when it can be related to a
benchmark or standard.
Conservatism
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Ans: a pervasive factor in accounting, can be summarized as follows: When in
doubt, recognize all losses but don't recognize any gains
Consistency
Ans: Comparability of accounting data for the same company over time
Disclosure
Ans: Convey the details in a narrative note without ever including anything in
the financial statements themselves.
Earnings Per Share (EPS)
Ans: The amount of net income associated with each share of stock.
Entity Concept
Ans: The idea that personal financial activity is kept separate from business
financial activity
Expenses
Ans: The amount of assets consumed from the performance of business
operations and thus are the opposite of revenues
External Audit
Ans: an external check by public accountants that are not part of any one
company's accounting staff, so they can give an independent outside opinion on
the quality of the financial statements of companies that they audit
Financing Activities
© 2025/ 2026 | ® All rights reserved
