WGU C213 ACCOUNTING COMPREHENSIVE EXAM ACTUAL
QUESTIONS AND ANSWERS SURE A+
✔✔current asset - ✔✔an asset that is expected to be used within one year of the
balance sheet date
✔✔cash, accounts receivable, and inventory - ✔✔What are the most common current
assets?
✔✔Property, plant, and equipment (PPE) - ✔✔What are the primary long-term assets?
✔✔companies report the intangibles that they have purchased from other companies
but not the intangibles that they have developed themselves - ✔✔Which intangible
assets are reported on the balance sheet?
✔✔current liability - ✔✔those obligations that are expected to be paid or otherwise
satisfied within one year
✔✔long-term bank loans, mortgages, and bonds - ✔✔What are 3 common sources of
long-term debt?
✔✔Common stockholders are the true owners of a business; Preferred stockholders
give up some of the rights of ownership enjoyed by common stockholders in exchange
for some of the safety promised to creditors - ✔✔What is the difference between a
common stockholder and a preferred stockholder?
✔✔Retained Earnings - ✔✔the cumulative amount of corporate profits that have been
retained within the business rather than being paid out to stockholders as dividends
✔✔treasury stock - ✔✔the amount the corporation has spent to buy back its own shares
from stockholders
✔✔2 years, Comparative side-by-side format - ✔✔How many years worth of balance
sheets does a company usually provide and how are they typically formatted?
✔✔Cash - ✔✔What is the first item that is usually listed on a U.S. balance sheet?
✔✔Long-term assets - ✔✔What is the first item that is usually listed on a non-U.S.
balance sheet?
✔✔working capital - ✔✔The difference of current assets-current liabilities
, ✔✔Recognition (In terms of accounting) - ✔✔the process of condensing all estimates
and judgments into one number and reporting that one number in the formal financial
statements
✔✔disclosure - ✔✔An alternative way to report information, describing details in a
narrative note
✔✔Transaction Analysis - ✔✔is the process of determining how an economic event
impacts financial statements
✔✔Asset Mix - ✔✔the proportion of total assets in each asset category that is largely
determined by the industry in which the company operates
✔✔Income from Continuing Operations - ✔✔What is the best measure of sustainable
profitability?
✔✔Gross Profit - ✔✔the difference between the selling price of a product and the cost
of the product
✔✔Operating Income - ✔✔gross profit minus all other expenses except for interest and
taxes; measures the performance of the fundamental business operations conducted by
a company
✔✔Income from Continuing Operations - ✔✔operating income minus interest expense,
minus income tax expense, and plus or minus other miscellaneous revenue and
expense items, and gains and losses from peripheral transactions and events
✔✔Net Income - ✔✔income from continuing operations plus or minus the results of
discontinued operations and extraordinary items, net of their respective income tax
effects
✔✔Comprehensive Income - ✔✔net income plus or minus adjustments for changes in
company wealth stemming from changes in certain exchange rates, interest rates, or
financial instruments' values
✔✔Gains, Losses, Revenues, and Expenses - ✔✔What are the 4 primary item
categories listed on the income statement?
✔✔selling goods, providing services, Earning interest by providing loans - ✔✔What are
some common business activities that generate revenue?
✔✔cost of goods sold; selling, general, and administrative expense, depreciation
expense, income tax expense, and interest expense - ✔✔What are the key expense
items commonly found on the income statement?
QUESTIONS AND ANSWERS SURE A+
✔✔current asset - ✔✔an asset that is expected to be used within one year of the
balance sheet date
✔✔cash, accounts receivable, and inventory - ✔✔What are the most common current
assets?
✔✔Property, plant, and equipment (PPE) - ✔✔What are the primary long-term assets?
✔✔companies report the intangibles that they have purchased from other companies
but not the intangibles that they have developed themselves - ✔✔Which intangible
assets are reported on the balance sheet?
✔✔current liability - ✔✔those obligations that are expected to be paid or otherwise
satisfied within one year
✔✔long-term bank loans, mortgages, and bonds - ✔✔What are 3 common sources of
long-term debt?
✔✔Common stockholders are the true owners of a business; Preferred stockholders
give up some of the rights of ownership enjoyed by common stockholders in exchange
for some of the safety promised to creditors - ✔✔What is the difference between a
common stockholder and a preferred stockholder?
✔✔Retained Earnings - ✔✔the cumulative amount of corporate profits that have been
retained within the business rather than being paid out to stockholders as dividends
✔✔treasury stock - ✔✔the amount the corporation has spent to buy back its own shares
from stockholders
✔✔2 years, Comparative side-by-side format - ✔✔How many years worth of balance
sheets does a company usually provide and how are they typically formatted?
✔✔Cash - ✔✔What is the first item that is usually listed on a U.S. balance sheet?
✔✔Long-term assets - ✔✔What is the first item that is usually listed on a non-U.S.
balance sheet?
✔✔working capital - ✔✔The difference of current assets-current liabilities
, ✔✔Recognition (In terms of accounting) - ✔✔the process of condensing all estimates
and judgments into one number and reporting that one number in the formal financial
statements
✔✔disclosure - ✔✔An alternative way to report information, describing details in a
narrative note
✔✔Transaction Analysis - ✔✔is the process of determining how an economic event
impacts financial statements
✔✔Asset Mix - ✔✔the proportion of total assets in each asset category that is largely
determined by the industry in which the company operates
✔✔Income from Continuing Operations - ✔✔What is the best measure of sustainable
profitability?
✔✔Gross Profit - ✔✔the difference between the selling price of a product and the cost
of the product
✔✔Operating Income - ✔✔gross profit minus all other expenses except for interest and
taxes; measures the performance of the fundamental business operations conducted by
a company
✔✔Income from Continuing Operations - ✔✔operating income minus interest expense,
minus income tax expense, and plus or minus other miscellaneous revenue and
expense items, and gains and losses from peripheral transactions and events
✔✔Net Income - ✔✔income from continuing operations plus or minus the results of
discontinued operations and extraordinary items, net of their respective income tax
effects
✔✔Comprehensive Income - ✔✔net income plus or minus adjustments for changes in
company wealth stemming from changes in certain exchange rates, interest rates, or
financial instruments' values
✔✔Gains, Losses, Revenues, and Expenses - ✔✔What are the 4 primary item
categories listed on the income statement?
✔✔selling goods, providing services, Earning interest by providing loans - ✔✔What are
some common business activities that generate revenue?
✔✔cost of goods sold; selling, general, and administrative expense, depreciation
expense, income tax expense, and interest expense - ✔✔What are the key expense
items commonly found on the income statement?
