WGU C213 Final Exam Accounting for Decision Makers
Questions and Answers (2023/2024)
(Verified Answers)
1. What does accounting focus on ANS The impact a business's activities
have onits overall financial performance
2. Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time ANS
Statementof cash flows
3. Which users would have a primary concern with an organization's ability to
provide healthcare benefits ANS Employees
4. Which benefit does a corporation gain by following Generally Accepted Ac-
counting Principles (GAAP) ANS An increase in its comparability to other
companies
5. Which body regulates a certified public accounting firm's audit practices
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,when the firm is auditing a large publicly traded company ANS The Public
Com-pany Accounting Oversight Board (PCAOB)
6. What has had the most significant impact on accounting practices ANS
Infor-mation technology
7. What two items of information are revealed on the balance sheet ANS
Owner-ship & Debt
8. Which term is defined as the residual interest in the net assets of a compa-
ny ANS Owners' equity
9. A corporation has total liabilities of $300 million, total owners' equity of
$100 million, and current assets of $50 million.What is the value of the firm's
long-term assets ANS $350 million
10. Which situation should result in revenue recognition on the income state-
ment for the year ending 12/31/14 if the firm is using accrual-basis account-
ing ANS In 2014, a company provides services to a customer for which cash will
be collected the next year (2015).
11. Which category on the statement of cash flows summarizes cash receipts
and payments to owners and creditors of the company ANS Cash flows from
financing activities
2/6
,12. Where would an investor find a summary of a company's significant ac-
counting policies ANS In the notes to financial statements
13. Which assurance does an external audit report provide for its readers
ANS -
The company's financial statements fairly reflect its financial position
14. Reliable. Match each accounting term with its definition.: Information that
can be verified
15. Relevant. Match each accounting term with its definition.: Information hav-
ing to do with the matter at hand
3/6
, 16. Material. Match each accounting term with its definition.: Information that is
important enough to make a difference
17. Conservatism. Match each accounting term with its definition.: Information
related to recognizing losses as they occur
18. Order the steps in the decision cycle from first (1) to last (5).: PAGMI
19. What does it mean if a company has a debt ratio of 101.5% ANS The
companyhas 1.5% more total liabilities than total assets.
20. What is consistent with a continual decline in gross profit if the firm's cost
of goods sold remains the same ANS Continual decrease in sales
21. Which cash flow adequacy ratios represent a cash cow ANS $6,991 /
$5,486
22. Which cash flow adequacy ratios represent a cash cow ANS $5,220 /
$1,875
23. Which formula yields a cash times interest earned ratio of 11 ANS Cash
beforeinterest and taxes of $11,000 / cash paid for interest of $1,000
4/6
Questions and Answers (2023/2024)
(Verified Answers)
1. What does accounting focus on ANS The impact a business's activities
have onits overall financial performance
2. Which report summarizes cash collections and cash expenditures from
operating, investing, and financing activities over a period of time ANS
Statementof cash flows
3. Which users would have a primary concern with an organization's ability to
provide healthcare benefits ANS Employees
4. Which benefit does a corporation gain by following Generally Accepted Ac-
counting Principles (GAAP) ANS An increase in its comparability to other
companies
5. Which body regulates a certified public accounting firm's audit practices
1/6
,when the firm is auditing a large publicly traded company ANS The Public
Com-pany Accounting Oversight Board (PCAOB)
6. What has had the most significant impact on accounting practices ANS
Infor-mation technology
7. What two items of information are revealed on the balance sheet ANS
Owner-ship & Debt
8. Which term is defined as the residual interest in the net assets of a compa-
ny ANS Owners' equity
9. A corporation has total liabilities of $300 million, total owners' equity of
$100 million, and current assets of $50 million.What is the value of the firm's
long-term assets ANS $350 million
10. Which situation should result in revenue recognition on the income state-
ment for the year ending 12/31/14 if the firm is using accrual-basis account-
ing ANS In 2014, a company provides services to a customer for which cash will
be collected the next year (2015).
11. Which category on the statement of cash flows summarizes cash receipts
and payments to owners and creditors of the company ANS Cash flows from
financing activities
2/6
,12. Where would an investor find a summary of a company's significant ac-
counting policies ANS In the notes to financial statements
13. Which assurance does an external audit report provide for its readers
ANS -
The company's financial statements fairly reflect its financial position
14. Reliable. Match each accounting term with its definition.: Information that
can be verified
15. Relevant. Match each accounting term with its definition.: Information hav-
ing to do with the matter at hand
3/6
, 16. Material. Match each accounting term with its definition.: Information that is
important enough to make a difference
17. Conservatism. Match each accounting term with its definition.: Information
related to recognizing losses as they occur
18. Order the steps in the decision cycle from first (1) to last (5).: PAGMI
19. What does it mean if a company has a debt ratio of 101.5% ANS The
companyhas 1.5% more total liabilities than total assets.
20. What is consistent with a continual decline in gross profit if the firm's cost
of goods sold remains the same ANS Continual decrease in sales
21. Which cash flow adequacy ratios represent a cash cow ANS $6,991 /
$5,486
22. Which cash flow adequacy ratios represent a cash cow ANS $5,220 /
$1,875
23. Which formula yields a cash times interest earned ratio of 11 ANS Cash
beforeinterest and taxes of $11,000 / cash paid for interest of $1,000
4/6
