C213 ACCOUNTING FOR DECISION
MAKERS-2 WGU QUIZZES WITH VALIDATED
RIGHT ANSWERS.
Understanding of a business increases as one associates the individual asset, liability,
and equity accounts with the underlying business activities that give rise to them. T/F
- Correct Answer -True
Assets and liabilities are generally classified as _______________ or _________
__________. - Correct Answer -current or long term.
Current Asset - Correct Answer -one that is expected to be used within one year of
the balance sheet date.
Long term assets include - Correct Answer -property, plant and equipment,
investments in other companies, and bonds or notes receivable
Current Liabilities - Correct Answer -liabilities due within a short time, usually
within a year
long-term debt - Correct Answer -a liability that falls due beyond one year from the
date of the financial statements
Companies can issue what two kinds of stock? - Correct Answer -common and
preferred
Common stockholders are the true owners of a business. T/F - Correct Answer -True
1
,Preferred stockholders give up some of the rights of ownership enjoyed by common
stockholders in exchange for some of the safety promised to creditors. T/F - Correct
Answer -True
Companies usually provide balance sheets for at least __________ years, with the
statements shown in comparative, side-by-side format. - Correct Answer -Two
The first item in a U.S. balance sheet is usually __________. - Correct Answer -Cash
The first item in a NON-U.S. countries balance sheet is usually
________________________. - Correct Answer -Long term assets
The order of presentation in a standard balance sheet is? - Correct Answer -current
assets, long-term assets, current liabilities, long-term liabilities, and stockholders'
equity
What is the difference between current assets and liabilities called? - Correct Answer
-Working capital
Recognition - Correct Answer -the process of condensing all estimates and judgments
into one number and reporting that one number in the formal financial statements.
Disclosure - Correct Answer -describing details in a narrative note.
____________________ is the preferred method of reporting financial information. -
Correct Answer -Recognition
Individual transactions impacting balance sheets can be analyzed by remembering that
the accounting equation (_________=__________ + ___________) is always
maintained. - Correct Answer -Assets = Liabilities + Owners' Equity
Transaction analysis - Correct Answer -the process of determining how an economic
event impacts financial statements.
2
, The discipline imposed by the mathematical necessity of maintaining the accounting
equation helps to ensure that all dimensions of the impact of an event on financial
statements have been considered. T/F - Correct Answer -True
Transaction analysis is NOT a useful exercise in critically and systematically
analyzing the impact of business events on a company's reported financial
performance and position. T/F - Correct Answer -False. Transaction is very useful
Asset Mix - Correct Answer -The proportion of total assets in each asset category, is
determined to a large degree by the industry in which the company operates.
Net Income - Correct Answer -The amount by which revenues exceed expenses.
The primary categories of income statement items are - Correct Answer -revenues,
expenses, gains, and losses.
Income statement items that do not relate to a company's continuing operations are -
Correct Answer -income from discontinued operations and extraordinary items.
Individual transactions impacting income can be analyzed using the expanded
accounting equation, which is: - Correct Answer -Assets = Liabilities + Paid-in
Capital + (Revenues - Expenses - Dividends)
An important use of an income statement is to - Correct Answer -forecast income in
future periods.
Good forecasting requires an understanding of - Correct Answer -what underlying
factors determine the level of a revenue or an expense.
Accrual accounting - Correct Answer -the process that accountants use in adjusting
raw transaction data into refined measures of a firm's economic performance.
3
MAKERS-2 WGU QUIZZES WITH VALIDATED
RIGHT ANSWERS.
Understanding of a business increases as one associates the individual asset, liability,
and equity accounts with the underlying business activities that give rise to them. T/F
- Correct Answer -True
Assets and liabilities are generally classified as _______________ or _________
__________. - Correct Answer -current or long term.
Current Asset - Correct Answer -one that is expected to be used within one year of
the balance sheet date.
Long term assets include - Correct Answer -property, plant and equipment,
investments in other companies, and bonds or notes receivable
Current Liabilities - Correct Answer -liabilities due within a short time, usually
within a year
long-term debt - Correct Answer -a liability that falls due beyond one year from the
date of the financial statements
Companies can issue what two kinds of stock? - Correct Answer -common and
preferred
Common stockholders are the true owners of a business. T/F - Correct Answer -True
1
,Preferred stockholders give up some of the rights of ownership enjoyed by common
stockholders in exchange for some of the safety promised to creditors. T/F - Correct
Answer -True
Companies usually provide balance sheets for at least __________ years, with the
statements shown in comparative, side-by-side format. - Correct Answer -Two
The first item in a U.S. balance sheet is usually __________. - Correct Answer -Cash
The first item in a NON-U.S. countries balance sheet is usually
________________________. - Correct Answer -Long term assets
The order of presentation in a standard balance sheet is? - Correct Answer -current
assets, long-term assets, current liabilities, long-term liabilities, and stockholders'
equity
What is the difference between current assets and liabilities called? - Correct Answer
-Working capital
Recognition - Correct Answer -the process of condensing all estimates and judgments
into one number and reporting that one number in the formal financial statements.
Disclosure - Correct Answer -describing details in a narrative note.
____________________ is the preferred method of reporting financial information. -
Correct Answer -Recognition
Individual transactions impacting balance sheets can be analyzed by remembering that
the accounting equation (_________=__________ + ___________) is always
maintained. - Correct Answer -Assets = Liabilities + Owners' Equity
Transaction analysis - Correct Answer -the process of determining how an economic
event impacts financial statements.
2
, The discipline imposed by the mathematical necessity of maintaining the accounting
equation helps to ensure that all dimensions of the impact of an event on financial
statements have been considered. T/F - Correct Answer -True
Transaction analysis is NOT a useful exercise in critically and systematically
analyzing the impact of business events on a company's reported financial
performance and position. T/F - Correct Answer -False. Transaction is very useful
Asset Mix - Correct Answer -The proportion of total assets in each asset category, is
determined to a large degree by the industry in which the company operates.
Net Income - Correct Answer -The amount by which revenues exceed expenses.
The primary categories of income statement items are - Correct Answer -revenues,
expenses, gains, and losses.
Income statement items that do not relate to a company's continuing operations are -
Correct Answer -income from discontinued operations and extraordinary items.
Individual transactions impacting income can be analyzed using the expanded
accounting equation, which is: - Correct Answer -Assets = Liabilities + Paid-in
Capital + (Revenues - Expenses - Dividends)
An important use of an income statement is to - Correct Answer -forecast income in
future periods.
Good forecasting requires an understanding of - Correct Answer -what underlying
factors determine the level of a revenue or an expense.
Accrual accounting - Correct Answer -the process that accountants use in adjusting
raw transaction data into refined measures of a firm's economic performance.
3
