WGU C213 ACCOUNTING FOR DECISION MAKERS
OBJECTIVE ASSESSMENT EXAM Questions with
Verified Answers () Grade A+ Guarantee
Property, Plant, and Equipment - ANSWER-Exactly what the label implies: land, buildings, machinery,
tools, furniture, fixtures, and vehicles used by a company in conducting its business activities.
Public Company Accounting Oversight Board (PCAOB) - ANSWER-Board of five full-time members
established by the Sarbanes-Oxley Act to oversee the accounting and auditing profession.
Recognition - ANSWER-Boil down all the estimates and judgments into one number and report that one
number in formal financial statements.
Regression Line - ANSWER-On a scattergraph, the straight line that most closely expresses the
relationship between the variables.
Relevance - ANSWER-A qualitative characteristic in accounting. Relevance is associated with information
that is timely, useful, has predictive value, and is going to make a difference to a decision maker.
Relevant Range - ANSWER-The range of operating level, or volume of activity, over which the
relationship between total costs (variable plus fixed) and activity level is apploximately linear.
Reliability - ANSWER-A qualitative characteristic in accounting. It is achieved when information is
verifiable, objective (not subjective) and you can depend on it.
Restructuring Charges - ANSWER-The fact that companies have exercised considerable discretion in
determining the amount and timing of a restructuring charge.
Retained Earnings - ANSWER-The cumulative amount of a corporation's profits that have been
reinvested on behalf of the stockholders
Return On Assets - ANSWER-Net income divided by total assets and is the number of pennies of net
income generated by each dollar of assets.
,WGU C213 ACCOUNTING FOR DECISION MAKERS
OBJECTIVE ASSESSMENT EXAM Questions with
Verified Answers () Grade A+ Guarantee
Return On Equity - ANSWER-The overall measure of the performance of a company.
Return On Investment - ANSWER-A measure of operating performance and efficiency in utilizing assets;
computed in its simplest form by dividing net income by average total assets (also known as return on
assets or ROA).
Return On Sales - ANSWER-Net income divided by sales and is interpreted as the number of pennies in
profit generated from each dollar of sales.
Return On Sales Revenue - ANSWER-A measure of operating performance; computed by dividing net
income by total sales revenue. Similar to profit margin.
Revenue - ANSWER-The value of the goods and services provided by a company in its business
operations.
Revenue Recognition - ANSWER-a cornerstone of accrual accounting together with matching principle.
They both determine the accounting period, in which revenues and expenses are recognized.
Sales Mix - ANSWER-The relative proportion of total sales dollars (or total units sold) that is represented
by each of a company's products.
Sarbanes-Oxley Act - ANSWER-A law passed by Congress in 2002 that gives the SEC significant oversight
responsibility and control over companies issuing financial statements and their external auditors.
Scattergraph - ANSWER-A method of segregating the fixed and variable components of a mixed cost by
plotting on total costs at several activity levels and drawing a regression line through the points.
Securities and Exchange Commission (SEC) - ANSWER-The government body responsible for regulating
the financial reporting practices of most publicly owned corporations in connection with the buying and
selling of stocks and bonds.
, WGU C213 ACCOUNTING FOR DECISION MAKERS
OBJECTIVE ASSESSMENT EXAM Questions with
Verified Answers () Grade A+ Guarantee
Accounting - ANSWER-A system of providing "quantitative information, primarily financial in nature,
about economic entities that is intended to be useful in making economic decisions."
Accounting Equation - ANSWER-Assets = Liabilities + Owners' Equity
Accounts Payable - ANSWER-The flip side of accounts receivable—when one company sells on credit,
creating for itself an account receivable, the company on the other side of the transaction is buying on
credit, creating an account payable.
Accounts Receivable - ANSWER-Amounts owed to a business by its credit customers and are usually
collected in cash within 10 to 60 days.
Accrual Accounting - ANSWER-The process that accountants use in adjusting raw transaction data into
refined measures of a firm's economic performance.
Accumulated Depreciation - ANSWER-Reflects the wear and tear, or depreciation, of these items since
they were originally purchased.
Accumulated Other Comprehensive Income - ANSWER-The grouped together and reported changes
which companies experience increases and decreases in equity each year because of the movement of
market prices or exchange rates
Activity-based Costing (ABC) - ANSWER-A method of attributing overhead costs to products based on
measurable factors that relate to activities that create overhead costs.
Additional Paid-in Capital - ANSWER-Invested by stockholders that exceeds the par value of the issued
shares.
American Institute of Certified Public Accountants (AICPA) - ANSWER-The professional organization of
certified public accountants in the United States.
OBJECTIVE ASSESSMENT EXAM Questions with
Verified Answers () Grade A+ Guarantee
Property, Plant, and Equipment - ANSWER-Exactly what the label implies: land, buildings, machinery,
tools, furniture, fixtures, and vehicles used by a company in conducting its business activities.
Public Company Accounting Oversight Board (PCAOB) - ANSWER-Board of five full-time members
established by the Sarbanes-Oxley Act to oversee the accounting and auditing profession.
Recognition - ANSWER-Boil down all the estimates and judgments into one number and report that one
number in formal financial statements.
Regression Line - ANSWER-On a scattergraph, the straight line that most closely expresses the
relationship between the variables.
Relevance - ANSWER-A qualitative characteristic in accounting. Relevance is associated with information
that is timely, useful, has predictive value, and is going to make a difference to a decision maker.
Relevant Range - ANSWER-The range of operating level, or volume of activity, over which the
relationship between total costs (variable plus fixed) and activity level is apploximately linear.
Reliability - ANSWER-A qualitative characteristic in accounting. It is achieved when information is
verifiable, objective (not subjective) and you can depend on it.
Restructuring Charges - ANSWER-The fact that companies have exercised considerable discretion in
determining the amount and timing of a restructuring charge.
Retained Earnings - ANSWER-The cumulative amount of a corporation's profits that have been
reinvested on behalf of the stockholders
Return On Assets - ANSWER-Net income divided by total assets and is the number of pennies of net
income generated by each dollar of assets.
,WGU C213 ACCOUNTING FOR DECISION MAKERS
OBJECTIVE ASSESSMENT EXAM Questions with
Verified Answers () Grade A+ Guarantee
Return On Equity - ANSWER-The overall measure of the performance of a company.
Return On Investment - ANSWER-A measure of operating performance and efficiency in utilizing assets;
computed in its simplest form by dividing net income by average total assets (also known as return on
assets or ROA).
Return On Sales - ANSWER-Net income divided by sales and is interpreted as the number of pennies in
profit generated from each dollar of sales.
Return On Sales Revenue - ANSWER-A measure of operating performance; computed by dividing net
income by total sales revenue. Similar to profit margin.
Revenue - ANSWER-The value of the goods and services provided by a company in its business
operations.
Revenue Recognition - ANSWER-a cornerstone of accrual accounting together with matching principle.
They both determine the accounting period, in which revenues and expenses are recognized.
Sales Mix - ANSWER-The relative proportion of total sales dollars (or total units sold) that is represented
by each of a company's products.
Sarbanes-Oxley Act - ANSWER-A law passed by Congress in 2002 that gives the SEC significant oversight
responsibility and control over companies issuing financial statements and their external auditors.
Scattergraph - ANSWER-A method of segregating the fixed and variable components of a mixed cost by
plotting on total costs at several activity levels and drawing a regression line through the points.
Securities and Exchange Commission (SEC) - ANSWER-The government body responsible for regulating
the financial reporting practices of most publicly owned corporations in connection with the buying and
selling of stocks and bonds.
, WGU C213 ACCOUNTING FOR DECISION MAKERS
OBJECTIVE ASSESSMENT EXAM Questions with
Verified Answers () Grade A+ Guarantee
Accounting - ANSWER-A system of providing "quantitative information, primarily financial in nature,
about economic entities that is intended to be useful in making economic decisions."
Accounting Equation - ANSWER-Assets = Liabilities + Owners' Equity
Accounts Payable - ANSWER-The flip side of accounts receivable—when one company sells on credit,
creating for itself an account receivable, the company on the other side of the transaction is buying on
credit, creating an account payable.
Accounts Receivable - ANSWER-Amounts owed to a business by its credit customers and are usually
collected in cash within 10 to 60 days.
Accrual Accounting - ANSWER-The process that accountants use in adjusting raw transaction data into
refined measures of a firm's economic performance.
Accumulated Depreciation - ANSWER-Reflects the wear and tear, or depreciation, of these items since
they were originally purchased.
Accumulated Other Comprehensive Income - ANSWER-The grouped together and reported changes
which companies experience increases and decreases in equity each year because of the movement of
market prices or exchange rates
Activity-based Costing (ABC) - ANSWER-A method of attributing overhead costs to products based on
measurable factors that relate to activities that create overhead costs.
Additional Paid-in Capital - ANSWER-Invested by stockholders that exceeds the par value of the issued
shares.
American Institute of Certified Public Accountants (AICPA) - ANSWER-The professional organization of
certified public accountants in the United States.
