WGU C213 ACCOUNTING FOR DECISION MAKERS| STUDY
GUIDE (2025/ 2025) (VERIFIED ANSWERS)
1. Accounting ANS A system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in making
economic decisions."
2. Accounting Equation ANS Assets = Liabilities + Owners' Equity
3. Accounts Payable ANS The flip side of accounts receivable—when one
company sells on credit, creating for itself an account receivable, the company
on the other side of the transaction is buying on credit, creating an account
payable.
4. Accounts Receivable ANS Amounts owed to a business by its credit
customers and are usually collected in cash within 10 to 60 days.
5. Accrual Accounting ANS The process that accountants use in adjusting raw
trans- action data into refined measures of a firm's economic performance.
6. Accumulated Depreciation ANS Reflects the wear and tear, or depreciation, of
these items since they were originally purchased.
,7. Accumulated Other Comprehensive Income ANS The grouped together
and re- ported changes which companies experience increases and decreases
in equity each year because of the movement of market prices or exchange
rates
8. Activity-based Costing (ABC) ANS A method of attributing overhead costs to
prod- ucts based on measurable factors that relate to activities that create overhead
costs.
9. Additional Paid-in Capital ANS Invested by stockholders that exceeds the par
value of the issued shares.
10. American Institute of Certified Public Accountants (AICPA) ANS The
profession- al organization of certified public accountants in the United States.
11. Asset ANS Probable future economic benefit obtained or controlled by a
particular entity as a result of past transactions or events.
12. Asset Mix ANS The proportion of total assets in each asset category, is
determined to a large degree by the industry in which the company operates.
13. Asset Turnover ANS Sales divided by assets and is interpreted as the
number of dollars in sales generated by each dollar of assets.
14. Assets ANS Assets are the firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a particular entity as
a result of past transactions or events
15. Assets-to-equity Ratio ANS Assets divided by equity and is interpreted
as the number of dollars of assets acquired for each dollar invested by
stockholders.
16. Audit Committee ANS Members of a company's board of directors who are
respon- sible for dealing with the external and internal auditors.
17. Average Collection Period ANS Shows the average number of days that
elapse between sale and cash collection.
18. Balance Sheet ANS A listing of an organization's assets and of its
,liabilities at a certain time.
, 19. Batch-level Activities ANS Activities that take place in order to support a
batch or production run, regardless of the size of the batch. (starting & stopping,
small productions runs = higher cost even if the total amount produced stays the
same)
20. Book Value ANS The book value of an asset is the asset's cost minus the
asset's accumulated depreciation.
21. Bookkeeping ANS The preservation of a systematic, quantitative record of an
activ- ity.
22. Break-even Point ANS The amount of sales at which total costs of the
number of units sold equal total revenues; the point at which there is no profit or
loss.
23. Capital Budgeting ANS Systematic planning for long-term investments in
operating assets.
24. Capital Lease Obligations ANS A long-term liability in the balance sheet.
25. Cash ANS Coins and currency as well as the balances in company
checking and savings accounts.
26. Cash Budget ANS An important tool in helping management plan its cash
needs.
27. Cash Equivalents ANS Short-term, highly liquid investments such as Treasury
bills, commercial paper, and money market funds.
28. Cash Flow Adequacy Ratio ANS Cash from operations divided by
expenditures for fixed asset additions and acquisitions of new businesses
29. Cash Times Interest Earned Ratio ANS A financial analysis tool that
indicates the interest payment ability of an entity
30. Certified Public Accountant ANS A person who has taken a minimum
number of college-level accounting classes, has passed the dreaded CPA exam,
4 H/ H80
GUIDE (2025/ 2025) (VERIFIED ANSWERS)
1. Accounting ANS A system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in making
economic decisions."
2. Accounting Equation ANS Assets = Liabilities + Owners' Equity
3. Accounts Payable ANS The flip side of accounts receivable—when one
company sells on credit, creating for itself an account receivable, the company
on the other side of the transaction is buying on credit, creating an account
payable.
4. Accounts Receivable ANS Amounts owed to a business by its credit
customers and are usually collected in cash within 10 to 60 days.
5. Accrual Accounting ANS The process that accountants use in adjusting raw
trans- action data into refined measures of a firm's economic performance.
6. Accumulated Depreciation ANS Reflects the wear and tear, or depreciation, of
these items since they were originally purchased.
,7. Accumulated Other Comprehensive Income ANS The grouped together
and re- ported changes which companies experience increases and decreases
in equity each year because of the movement of market prices or exchange
rates
8. Activity-based Costing (ABC) ANS A method of attributing overhead costs to
prod- ucts based on measurable factors that relate to activities that create overhead
costs.
9. Additional Paid-in Capital ANS Invested by stockholders that exceeds the par
value of the issued shares.
10. American Institute of Certified Public Accountants (AICPA) ANS The
profession- al organization of certified public accountants in the United States.
11. Asset ANS Probable future economic benefit obtained or controlled by a
particular entity as a result of past transactions or events.
12. Asset Mix ANS The proportion of total assets in each asset category, is
determined to a large degree by the industry in which the company operates.
13. Asset Turnover ANS Sales divided by assets and is interpreted as the
number of dollars in sales generated by each dollar of assets.
14. Assets ANS Assets are the firm's economic resources, formally defined as
"probable future economic benefits obtained or controlled by a particular entity as
a result of past transactions or events
15. Assets-to-equity Ratio ANS Assets divided by equity and is interpreted
as the number of dollars of assets acquired for each dollar invested by
stockholders.
16. Audit Committee ANS Members of a company's board of directors who are
respon- sible for dealing with the external and internal auditors.
17. Average Collection Period ANS Shows the average number of days that
elapse between sale and cash collection.
18. Balance Sheet ANS A listing of an organization's assets and of its
,liabilities at a certain time.
, 19. Batch-level Activities ANS Activities that take place in order to support a
batch or production run, regardless of the size of the batch. (starting & stopping,
small productions runs = higher cost even if the total amount produced stays the
same)
20. Book Value ANS The book value of an asset is the asset's cost minus the
asset's accumulated depreciation.
21. Bookkeeping ANS The preservation of a systematic, quantitative record of an
activ- ity.
22. Break-even Point ANS The amount of sales at which total costs of the
number of units sold equal total revenues; the point at which there is no profit or
loss.
23. Capital Budgeting ANS Systematic planning for long-term investments in
operating assets.
24. Capital Lease Obligations ANS A long-term liability in the balance sheet.
25. Cash ANS Coins and currency as well as the balances in company
checking and savings accounts.
26. Cash Budget ANS An important tool in helping management plan its cash
needs.
27. Cash Equivalents ANS Short-term, highly liquid investments such as Treasury
bills, commercial paper, and money market funds.
28. Cash Flow Adequacy Ratio ANS Cash from operations divided by
expenditures for fixed asset additions and acquisitions of new businesses
29. Cash Times Interest Earned Ratio ANS A financial analysis tool that
indicates the interest payment ability of an entity
30. Certified Public Accountant ANS A person who has taken a minimum
number of college-level accounting classes, has passed the dreaded CPA exam,
4 H/ H80
