WGUl C213l Pre-l Assessmentl V1–l
Accountingl forl Decisionl Makerl (Latestl
2026/l 2027l Update)l |l 100%l Verifiedl
Questionsl &l Answersl |l Gradel A
Q:l Whichl assurancel doesl anl externall auditl reportl providel forl itsl readers?
-l Thel companyl willl bel al goodl creditl risk
-l Thel companyl willl generatel netl income.
-l Thel company'sl financiall statementsl fairlyl reflectl itsl financiall position.
-l Thel companyl willl generatel positivel cashl flowsl
Answer:
Thel company'sl financiall statementsl fairlyl reflectl itsl financiall position
Q:l Orderl thel stepsl inl thel decisionl cyclel froml firstl tol last:l Gatherl information,l
preparel financiall statements,l analyzel financiall statements,l makel decision,l andl implementl
decision.l
Answer:
Preparel financiall statements,l analyzel financiall statements,l gatherl information,l makel
decision,l andl implementl decision
Q:l Partiall financiall informationl forl al companyl isl asl follows:l
Currentl assetsl $36,543l
Totall assetsl $58,719
Currentl liabilitiesl $24,824
Totall liabilitiesl $48,561
Stockholders'l equityl $10,158l Sales$46,997l
Netl Incomel $3,761
Marketl valuel ofl sharesl $41,316
Whatl isl thel price-earningsl (PE)l ratiol forl thisl company?l
,Answer:
11.0l Marketl valuel ofl shares/netl income
Q:l Whatl doesl itl meanl ifl al companyl hasl al debtl ratiol ofl 101.5%?l
Answer:
Thel companyl hasl 1.5%l morel totall liabilitiesl thanl totall assets.
Q:l Whatl isl consistentl withl al continuall declinel inl grossl profitl ifl thel firm'sl costl ofl
goodsl soldl remainsl thel same?
-l Continuall decreasel inl salaries
-l Continuall increasel inl interest
-l Continuall increasel inl taxes
-l Continuall decreasel inl salesl
Answer:
Continuall decreasel inl sales
Q:l Whichl twol cashl flowl adequacyl ratiosl representl al cashl cow?:l -l 4,510/4932,l -l
6,991/5,486,l -l 8,091/9374,l -l 5220/1875,l -l orl 7589/9210.l
Answer:
6,991/5,486l andl 5,220/1,875
Q:l Whichl formulal yieldsl al cashl timel interestl earnedl ratiol ofl 11?l
-l Cashl beforel interestl andl taxesl ofl $11,000l /l cashl paidl forl incomel taxesl ofl $1,000
-l Cashl beforel interestl andl taxesl ofl $11,000l /l cashl paidl forl interestl ofl $1,000
-l Cashl beforel interestl andl taxesl ofl $11,000l /l cashl froml operationsl ofl $1,000
-l Cashl beforel interestl andl taxesl ofl $11,000l /l cashl paidl forl acquisitionsl ofl $1,000l
Answer:
Cashl beforel interestl andl taxesl ofl $11,000/cashl paidl forl interestl ofl $1,000.
, Q:l Whichl forml ofl debtl shouldl bel reportedl inl thel long-terml liabilityl category?l
-l Unearnedl revenuel thatl willl bel earnedl inl 9l months.l
-l Notesl payablel expectedl tol bel paidl inl 18l months.l
-l Accountsl payablel duel inl 30l days.l
-l Salariesl payablel duel inl 2l weeksl
Answer:
Notesl payablel expectedl tol bel paidl inl 18l months
Q:l Inl Januaryl ofl yearl 1,l al companyl beganl doingl businessl asl al corporationl inl orderl
tol selll technology-relatedl accessoriesl andl services.l Duringl itsl firstl monthl ofl operations,l
thel followingl eventsl occurred:l
-l Januaryl 1l Thel corporationl receivedl $1,000,000l inl cashl inl exchangel forl stockl issuedl
tol stockholders.l
-l Januaryl 3l Thel corporationl borrowedl $250,000l froml bank.l Thel loanl isl al four-yearl
loanl withl anl interestl ratel ofl 12l percent,l payablel eachl yearl onl Januaryl 1l beginningl inl
yearl 2.l
-l Januaryl 5l Thel corporationl purchasedl equipmentl tol bel usedl inl thel businessl forl
$200,000l cash.l
-l Januaryl 8l Thel corporationl purchasedl inventoryl costingl $200,000l byl payingl $120,000l
inl cash.l Thel remainderl wasl putl onl creditl accountsl withl suppliers.
-l Januaryl 15l Thel corporationl hiredl fivel employees.l Eachl employeel willl bel paidl $1,000l
atl thel endl ofl eachl month.
-l Januaryl 30l Thel corporationl paidl $6,000l cashl forl al one-yearl insurancel policy.l Thel
policyl perl
Answer:
Equipmentl willl increasel 200,000l andl cashl willl decreasel 200,000
Q:l Inl Januaryl ofl yearl 1,l al companyl beganl doingl businessl asl al corporationl inl orderl
tol selll technology-relatedl accessoriesl andl services.l Duringl itsl firstl monthl ofl operations,l
thel followingl eventsl occurred:l
-l Januaryl 1l Thel corporationl receivedl $1,000,000l inl cashl inl exchangel forl stockl issuedl
tol stockholders.l
-l Januaryl 3l Thel corporationl borrowedl $250,000l froml bank.l Thel loanl isl al four-yearl
loanl withl anl interestl ratel ofl 12l percent,l payablel eachl yearl onl Januaryl 1l beginningl inl
yearl 2.l
Accountingl forl Decisionl Makerl (Latestl
2026/l 2027l Update)l |l 100%l Verifiedl
Questionsl &l Answersl |l Gradel A
Q:l Whichl assurancel doesl anl externall auditl reportl providel forl itsl readers?
-l Thel companyl willl bel al goodl creditl risk
-l Thel companyl willl generatel netl income.
-l Thel company'sl financiall statementsl fairlyl reflectl itsl financiall position.
-l Thel companyl willl generatel positivel cashl flowsl
Answer:
Thel company'sl financiall statementsl fairlyl reflectl itsl financiall position
Q:l Orderl thel stepsl inl thel decisionl cyclel froml firstl tol last:l Gatherl information,l
preparel financiall statements,l analyzel financiall statements,l makel decision,l andl implementl
decision.l
Answer:
Preparel financiall statements,l analyzel financiall statements,l gatherl information,l makel
decision,l andl implementl decision
Q:l Partiall financiall informationl forl al companyl isl asl follows:l
Currentl assetsl $36,543l
Totall assetsl $58,719
Currentl liabilitiesl $24,824
Totall liabilitiesl $48,561
Stockholders'l equityl $10,158l Sales$46,997l
Netl Incomel $3,761
Marketl valuel ofl sharesl $41,316
Whatl isl thel price-earningsl (PE)l ratiol forl thisl company?l
,Answer:
11.0l Marketl valuel ofl shares/netl income
Q:l Whatl doesl itl meanl ifl al companyl hasl al debtl ratiol ofl 101.5%?l
Answer:
Thel companyl hasl 1.5%l morel totall liabilitiesl thanl totall assets.
Q:l Whatl isl consistentl withl al continuall declinel inl grossl profitl ifl thel firm'sl costl ofl
goodsl soldl remainsl thel same?
-l Continuall decreasel inl salaries
-l Continuall increasel inl interest
-l Continuall increasel inl taxes
-l Continuall decreasel inl salesl
Answer:
Continuall decreasel inl sales
Q:l Whichl twol cashl flowl adequacyl ratiosl representl al cashl cow?:l -l 4,510/4932,l -l
6,991/5,486,l -l 8,091/9374,l -l 5220/1875,l -l orl 7589/9210.l
Answer:
6,991/5,486l andl 5,220/1,875
Q:l Whichl formulal yieldsl al cashl timel interestl earnedl ratiol ofl 11?l
-l Cashl beforel interestl andl taxesl ofl $11,000l /l cashl paidl forl incomel taxesl ofl $1,000
-l Cashl beforel interestl andl taxesl ofl $11,000l /l cashl paidl forl interestl ofl $1,000
-l Cashl beforel interestl andl taxesl ofl $11,000l /l cashl froml operationsl ofl $1,000
-l Cashl beforel interestl andl taxesl ofl $11,000l /l cashl paidl forl acquisitionsl ofl $1,000l
Answer:
Cashl beforel interestl andl taxesl ofl $11,000/cashl paidl forl interestl ofl $1,000.
, Q:l Whichl forml ofl debtl shouldl bel reportedl inl thel long-terml liabilityl category?l
-l Unearnedl revenuel thatl willl bel earnedl inl 9l months.l
-l Notesl payablel expectedl tol bel paidl inl 18l months.l
-l Accountsl payablel duel inl 30l days.l
-l Salariesl payablel duel inl 2l weeksl
Answer:
Notesl payablel expectedl tol bel paidl inl 18l months
Q:l Inl Januaryl ofl yearl 1,l al companyl beganl doingl businessl asl al corporationl inl orderl
tol selll technology-relatedl accessoriesl andl services.l Duringl itsl firstl monthl ofl operations,l
thel followingl eventsl occurred:l
-l Januaryl 1l Thel corporationl receivedl $1,000,000l inl cashl inl exchangel forl stockl issuedl
tol stockholders.l
-l Januaryl 3l Thel corporationl borrowedl $250,000l froml bank.l Thel loanl isl al four-yearl
loanl withl anl interestl ratel ofl 12l percent,l payablel eachl yearl onl Januaryl 1l beginningl inl
yearl 2.l
-l Januaryl 5l Thel corporationl purchasedl equipmentl tol bel usedl inl thel businessl forl
$200,000l cash.l
-l Januaryl 8l Thel corporationl purchasedl inventoryl costingl $200,000l byl payingl $120,000l
inl cash.l Thel remainderl wasl putl onl creditl accountsl withl suppliers.
-l Januaryl 15l Thel corporationl hiredl fivel employees.l Eachl employeel willl bel paidl $1,000l
atl thel endl ofl eachl month.
-l Januaryl 30l Thel corporationl paidl $6,000l cashl forl al one-yearl insurancel policy.l Thel
policyl perl
Answer:
Equipmentl willl increasel 200,000l andl cashl willl decreasel 200,000
Q:l Inl Januaryl ofl yearl 1,l al companyl beganl doingl businessl asl al corporationl inl orderl
tol selll technology-relatedl accessoriesl andl services.l Duringl itsl firstl monthl ofl operations,l
thel followingl eventsl occurred:l
-l Januaryl 1l Thel corporationl receivedl $1,000,000l inl cashl inl exchangel forl stockl issuedl
tol stockholders.l
-l Januaryl 3l Thel corporationl borrowedl $250,000l froml bank.l Thel loanl isl al four-yearl
loanl withl anl interestl ratel ofl 12l percent,l payablel eachl yearl onl Januaryl 1l beginningl inl
yearl 2.l
