WGU C201 PRACTICE PACK 2026
TESTED QUESTIONS AND ANSWERS
◉ Virtual Private Network (VPN).
Answer: A technology that enables employers to work remotely with
secure connectivity to the corporate network via the internet.
◉ Cloud Computing Services.
Answer: Services that enhance company productivity through better
resource utilization, elimination of application downtime, and dedication
of resources to each user.
◉ Ethical Expectation of Privacy.
Answer: The expectation that employees have privacy from company
monitoring for personal letters sent through the company mail room.
◉ Data Mining Ethical Issues.
Answer: Selling customer data for external marketing research raises
ethical issues heightened by the capabilities of data mining.
◉ Spyware Intent.
Answer: The intent to report on a user's internet activity creates a
company security issue.
◉ Departmentalization.
,Answer: A company might divide itself into smaller groups that best
match the types of customers it services.
◉ Total Productivity.
Answer: Output (goods or services) divided by input (human, natural
resources, capital).
◉ Liquidity Ratio.
Answer: Current assets divided by current liabilities.
◉ Acid Test.
Answer: Current assets minus inventory divided by current liabilities.
◉ Inventory Turnover.
Answer: Cost of goods sold divided by average inventory (average of
2013 + 2014).
◉ Receivables Turnover.
Answer: Credit sales divided by average account receivables (average of
2013 + 2014).
◉ Total Assets Turnover.
Answer: Sales divided by average total assets.
,◉ Liquidity Ratios.
Answer: Ratios that measure the firm's abilities to meet its short-term
obligations, including the liquidity ratio and acid test.
◉ Activity Ratios.
Answer: Measure management's use of the firm's resources and include
all turnover ratios.
◉ Profitability Ratios.
Answer: Gross profit, net profit, and return on equity.
◉ Gross Profit Margin.
Answer: Gross profit / sales.
◉ Net Profit Margin.
Answer: Net income / sales.
◉ Return on Equity.
Answer: Net income / average equity.
◉ Leverage Ratios.
Answer: Measure the extent to which a firm relies on debt financing and
includes debt ratio and long-term debt to equity.
, ◉ Debt Ratio.
Answer: Total liabilities / total assets.
◉ Long-term Debt to Equity.
Answer: Long-term debt / owner's equity.
◉ Management Support Systems.
Answer: Used for decisions.
◉ Operational Support Systems.
Answer: Information systems for activities fall under this support
system.
◉ Process Control System.
Answer: One of the two information systems that are operational support
systems.
◉ Transaction Process System.
Answer: One of the two information systems that are operational support
systems.
◉ Decision Support System (DSS).
Answer: Belongs to management support systems.
TESTED QUESTIONS AND ANSWERS
◉ Virtual Private Network (VPN).
Answer: A technology that enables employers to work remotely with
secure connectivity to the corporate network via the internet.
◉ Cloud Computing Services.
Answer: Services that enhance company productivity through better
resource utilization, elimination of application downtime, and dedication
of resources to each user.
◉ Ethical Expectation of Privacy.
Answer: The expectation that employees have privacy from company
monitoring for personal letters sent through the company mail room.
◉ Data Mining Ethical Issues.
Answer: Selling customer data for external marketing research raises
ethical issues heightened by the capabilities of data mining.
◉ Spyware Intent.
Answer: The intent to report on a user's internet activity creates a
company security issue.
◉ Departmentalization.
,Answer: A company might divide itself into smaller groups that best
match the types of customers it services.
◉ Total Productivity.
Answer: Output (goods or services) divided by input (human, natural
resources, capital).
◉ Liquidity Ratio.
Answer: Current assets divided by current liabilities.
◉ Acid Test.
Answer: Current assets minus inventory divided by current liabilities.
◉ Inventory Turnover.
Answer: Cost of goods sold divided by average inventory (average of
2013 + 2014).
◉ Receivables Turnover.
Answer: Credit sales divided by average account receivables (average of
2013 + 2014).
◉ Total Assets Turnover.
Answer: Sales divided by average total assets.
,◉ Liquidity Ratios.
Answer: Ratios that measure the firm's abilities to meet its short-term
obligations, including the liquidity ratio and acid test.
◉ Activity Ratios.
Answer: Measure management's use of the firm's resources and include
all turnover ratios.
◉ Profitability Ratios.
Answer: Gross profit, net profit, and return on equity.
◉ Gross Profit Margin.
Answer: Gross profit / sales.
◉ Net Profit Margin.
Answer: Net income / sales.
◉ Return on Equity.
Answer: Net income / average equity.
◉ Leverage Ratios.
Answer: Measure the extent to which a firm relies on debt financing and
includes debt ratio and long-term debt to equity.
, ◉ Debt Ratio.
Answer: Total liabilities / total assets.
◉ Long-term Debt to Equity.
Answer: Long-term debt / owner's equity.
◉ Management Support Systems.
Answer: Used for decisions.
◉ Operational Support Systems.
Answer: Information systems for activities fall under this support
system.
◉ Process Control System.
Answer: One of the two information systems that are operational support
systems.
◉ Transaction Process System.
Answer: One of the two information systems that are operational support
systems.
◉ Decision Support System (DSS).
Answer: Belongs to management support systems.
