WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
• What Does Accounting Focus On(Answer) The Impact A Business's Activities
Have On Its Overall Financial Performance
• Which Report Summarizes Cash Collections And Cash Expenditures From
Operating, Investing, And Financing Activities Over A Period Of
Time(Answer) State- Ment Of Cash Flows
• Which Users Would Have A Primary Concern With An Organization's Ability
To Provide Healthcare Benefits(Answer) Employees
• Which Body Regulates A Certified Public Accounting Firm's Audit Practices
When The Firm Is Auditing A Large Publicly Traded Company(Answer) The
Public Com- Pany Accounting Oversight Board (PCAOB)
• What Has Had The Most Significant Impact On Accounting
Practices(Answer) Infor- Mation Technology
pg. 1
, WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
• What Two Items Of Information Are Revealed On The Balance Sheet?
Choose 2 Answers: Ownership.
Debt
• Which Term Is Defined As The Residual Interest In The Net Assets Of A
Company(Answer) Owners' Equity
• A Corporation Has Total Liabilities Of $300 Million, Total Owners' Equity Of
$100 Million, And Current Assets Of $50 Million.
What Is The Value Of The Firm's Long-Term Assets(Answer) $350 Million
• Which Situation Should Result In Revenue Recognition On The Income State-
Ment For The Year Ending 12/31/14 If The Firm Is Using Accrual-Basis Account-
Ing(Answer) In 2014, A Company Provides Services To A Customer For Which Cash
Will Be Collected The Next Year (2015).
• Which Category On The Statement Of Cash Flows Summarizes Cash Receipts
And Payments To Owners And Creditors Of The Company(Answer) Cash Flows
From Financing Activities
pg. 2
, WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
• Where Would An Investor Find A Summary Of A Company's Significant
Accounting Policies(Answer) In The Notes To Financial Statements
• Which Assurance Does An External Audit Report Provide For Its Readers?-
: The Company's Financial Statements Fairly Reflect Its Financial Position
• Reliable: Information That Can Be Verified
• Relevant: Information Having To Do With The Matter At Hand
• Material: Information That Is Important Enough To Make A Difference
• Conservatism: Information Related To Recognizing Losses As They Occur
• Steps In The Decision Cycle: 1 Prepare Financial Statements.2
Analyze Financial Statements.
3 Gather Information.
4 Make Decision.
5 Implement Decision
pg. 3
, WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
• Partial Financial Information For A Company Is As Follows:
Current Assets $36,543
Total Assets $58,719
Current Liabilities $24,824
Total Liabilities $48,561
Stockholders' Equity $10,158
Sales $46,997
Net Income $ 3,761
Market Value Of Shares $41,316
What Is The Price-Earnings (PE) Ratio For This Company(Answer) 11.0
• What Is Consistent With A Continual Decline In Gross Profit If The Firm's
Cost Of Goods Sold Remains The Same(Answer) Continual Decrease In Sales
• Which Two Cash Flow Adequacy Ratios Represent A Cash Cow(Answer) -
$6,991/$5,486. $5,220/$1,875.
• Which Formula Yields A Cash Times Interest Earned Ratio Of 11(Answer)
Cash Before Interest And Taxes Of $11,000 / Cash Paid For InterestOf $1,000
• Which Form Of Debt Should Be Reported In The Long-Term Liability
Catego- Ry(Answer) Notes Payable Expected To Be Paid In 18 Months
pg. 4
QUESTIONS AND ANSWERS VERIFIED
WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
• What Does Accounting Focus On(Answer) The Impact A Business's Activities
Have On Its Overall Financial Performance
• Which Report Summarizes Cash Collections And Cash Expenditures From
Operating, Investing, And Financing Activities Over A Period Of
Time(Answer) State- Ment Of Cash Flows
• Which Users Would Have A Primary Concern With An Organization's Ability
To Provide Healthcare Benefits(Answer) Employees
• Which Body Regulates A Certified Public Accounting Firm's Audit Practices
When The Firm Is Auditing A Large Publicly Traded Company(Answer) The
Public Com- Pany Accounting Oversight Board (PCAOB)
• What Has Had The Most Significant Impact On Accounting
Practices(Answer) Infor- Mation Technology
pg. 1
, WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
• What Two Items Of Information Are Revealed On The Balance Sheet?
Choose 2 Answers: Ownership.
Debt
• Which Term Is Defined As The Residual Interest In The Net Assets Of A
Company(Answer) Owners' Equity
• A Corporation Has Total Liabilities Of $300 Million, Total Owners' Equity Of
$100 Million, And Current Assets Of $50 Million.
What Is The Value Of The Firm's Long-Term Assets(Answer) $350 Million
• Which Situation Should Result In Revenue Recognition On The Income State-
Ment For The Year Ending 12/31/14 If The Firm Is Using Accrual-Basis Account-
Ing(Answer) In 2014, A Company Provides Services To A Customer For Which Cash
Will Be Collected The Next Year (2015).
• Which Category On The Statement Of Cash Flows Summarizes Cash Receipts
And Payments To Owners And Creditors Of The Company(Answer) Cash Flows
From Financing Activities
pg. 2
, WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
• Where Would An Investor Find A Summary Of A Company's Significant
Accounting Policies(Answer) In The Notes To Financial Statements
• Which Assurance Does An External Audit Report Provide For Its Readers?-
: The Company's Financial Statements Fairly Reflect Its Financial Position
• Reliable: Information That Can Be Verified
• Relevant: Information Having To Do With The Matter At Hand
• Material: Information That Is Important Enough To Make A Difference
• Conservatism: Information Related To Recognizing Losses As They Occur
• Steps In The Decision Cycle: 1 Prepare Financial Statements.2
Analyze Financial Statements.
3 Gather Information.
4 Make Decision.
5 Implement Decision
pg. 3
, WGU C213 FINAL EXAM ACCOUNTING FOR DECISION MAKERS
QUESTIONS AND ANSWERS VERIFIED
• Partial Financial Information For A Company Is As Follows:
Current Assets $36,543
Total Assets $58,719
Current Liabilities $24,824
Total Liabilities $48,561
Stockholders' Equity $10,158
Sales $46,997
Net Income $ 3,761
Market Value Of Shares $41,316
What Is The Price-Earnings (PE) Ratio For This Company(Answer) 11.0
• What Is Consistent With A Continual Decline In Gross Profit If The Firm's
Cost Of Goods Sold Remains The Same(Answer) Continual Decrease In Sales
• Which Two Cash Flow Adequacy Ratios Represent A Cash Cow(Answer) -
$6,991/$5,486. $5,220/$1,875.
• Which Formula Yields A Cash Times Interest Earned Ratio Of 11(Answer)
Cash Before Interest And Taxes Of $11,000 / Cash Paid For InterestOf $1,000
• Which Form Of Debt Should Be Reported In The Long-Term Liability
Catego- Ry(Answer) Notes Payable Expected To Be Paid In 18 Months
pg. 4
