WGU C213 ACCOUNTING FOR DECISION
MAKERS EXAM SCRIPT SOLVED QUESTIONS
AND CORRECT ANSWERS GRADED A+
◉ Balance Sheet. Answer: A financial statement that reports assets,
liabilities, and owner's equity on a specific date.
◉ Income Statement. Answer: A financial statement that reports a
company's revenues and expenses and resulting net income or net loss
for a specific period of time.
◉ Statement of Cash Flows. Answer: Financial statement that reports
cash receipts and disbursements related to a firm's three major
activities: operations, investments, and financing.
◉ Notes to the financial statements. Answer: Notes that clarify
information presented in the financial statements and provide
additional detail.
◉ The company needs to demonstrate its financial position to
potential investors by showing what resources, the organization
controls and what obligation it owes to creditors at a specific point in
time which financial document would best accomplish this objective.
Answer: Balance sheet
,◉ Balance sheet. Answer: The balance sheet reports the resources of a
company which are its assets. The companies obligation which are its
liabilities and the owners equity at a specific point in time.
◉ Income Statement. Answer: The income statement reports net
income earned by a company during a period by showing revenues
minus expenses, not the companies financial position at the point in
time
◉ Statement of cash flow. Answer: The statement of cash flow
reports, cash collected and paid out through operating investing and
financial activities during a period not a financial position
◉ Notes to financial statement. Answer: Notes to financial statements,
provide additional information and discloses about accounting
policies, but they do not report assets, liabilities, and equity directly
◉ Auditor Report. Answer: A report prepared by an independent
outside auditor stating the auditor's opinion as to the fairness of the
presentation of the financial position and results of operations and
their conformance with generally accepted accounting principles.
◉ During an annual board meeting executives want to evaluate how
well the organization performs over the past 12 months by comparing
revenues generated against all expenses and cured during that specific
timeframe which financial report directly addresses this performance
measurement need. Answer: Income statement
, ◉ Income statement. Answer: Income statement reports the amount of
net income earned by a company during a period by showing revenue
minus expenses, directly measuring financial performance overtime
◉ Balance sheet. Answer: The balance sheet shows financial position
at a specific point in time with assets, liabilities and equity, but does
not measure performance over a period
◉ Statement of cash flow. Answer: The statement of cash flows
shows cash movement through operating investing and financial
activities, but does not directly compare revenues to expenses for
performance measurement
◉ Auditor report. Answer: The auditor report provide provides
assurance that financial statements fairly reflect the companies
position, but it does not measure revenues against expenses or
operational performance
◉ Operating Activities. Answer: transactions that relate to the primary
operations of the company
◉ Financial Activities. Answer: transactions the company has with
investors and creditors
◉ Note to the financial statements. Answer: explanatory notes keyed
to relevant accounts in the statements; they provide detailed
information on the accounting policies, procedures, calculations, and
transactions underlying entries in the financial statements
MAKERS EXAM SCRIPT SOLVED QUESTIONS
AND CORRECT ANSWERS GRADED A+
◉ Balance Sheet. Answer: A financial statement that reports assets,
liabilities, and owner's equity on a specific date.
◉ Income Statement. Answer: A financial statement that reports a
company's revenues and expenses and resulting net income or net loss
for a specific period of time.
◉ Statement of Cash Flows. Answer: Financial statement that reports
cash receipts and disbursements related to a firm's three major
activities: operations, investments, and financing.
◉ Notes to the financial statements. Answer: Notes that clarify
information presented in the financial statements and provide
additional detail.
◉ The company needs to demonstrate its financial position to
potential investors by showing what resources, the organization
controls and what obligation it owes to creditors at a specific point in
time which financial document would best accomplish this objective.
Answer: Balance sheet
,◉ Balance sheet. Answer: The balance sheet reports the resources of a
company which are its assets. The companies obligation which are its
liabilities and the owners equity at a specific point in time.
◉ Income Statement. Answer: The income statement reports net
income earned by a company during a period by showing revenues
minus expenses, not the companies financial position at the point in
time
◉ Statement of cash flow. Answer: The statement of cash flow
reports, cash collected and paid out through operating investing and
financial activities during a period not a financial position
◉ Notes to financial statement. Answer: Notes to financial statements,
provide additional information and discloses about accounting
policies, but they do not report assets, liabilities, and equity directly
◉ Auditor Report. Answer: A report prepared by an independent
outside auditor stating the auditor's opinion as to the fairness of the
presentation of the financial position and results of operations and
their conformance with generally accepted accounting principles.
◉ During an annual board meeting executives want to evaluate how
well the organization performs over the past 12 months by comparing
revenues generated against all expenses and cured during that specific
timeframe which financial report directly addresses this performance
measurement need. Answer: Income statement
, ◉ Income statement. Answer: Income statement reports the amount of
net income earned by a company during a period by showing revenue
minus expenses, directly measuring financial performance overtime
◉ Balance sheet. Answer: The balance sheet shows financial position
at a specific point in time with assets, liabilities and equity, but does
not measure performance over a period
◉ Statement of cash flow. Answer: The statement of cash flows
shows cash movement through operating investing and financial
activities, but does not directly compare revenues to expenses for
performance measurement
◉ Auditor report. Answer: The auditor report provide provides
assurance that financial statements fairly reflect the companies
position, but it does not measure revenues against expenses or
operational performance
◉ Operating Activities. Answer: transactions that relate to the primary
operations of the company
◉ Financial Activities. Answer: transactions the company has with
investors and creditors
◉ Note to the financial statements. Answer: explanatory notes keyed
to relevant accounts in the statements; they provide detailed
information on the accounting policies, procedures, calculations, and
transactions underlying entries in the financial statements
