C213 WGU, Key Points || with Errorless Answers.
Debt Ratio correct answers Total Liabilities/Total Assets
Current Ratio correct answers Current Assets/Current Liabilities. Only need a balance sheet.
Return on Sales correct answers Net Income/Sales. Only need income statement
Asset Turnover correct answers Sales/Total Assets
Return on Equity correct answers Net Income/Stockholder's equity. Balance and Income
Statements used.
Price-Earnings Ratio (PE) correct answers Market Value fo Shares/Net Income
Accounting is correct answers the recording of the day-to-day financial activities of a company
and the organization of that information into summary reports used to evaluate the company's
financial status.
Bookeeping is correct answers the preservation of a systematic, quantitative record of an activity.
Without bookkeeping, good business is impossible. An accounting system is used by a business
to handle routine bookkeeping tasks and to structure the information so it can be used to evaluate
the performance and financial status of the business. Accounting information is intended to be
useful in making decisions about the future.
The focus of financial accounting is correct answers the three primary financial statements: the
balance sheet, the income statement, and the statement of cash flows.
, Financial accounting information is correct answers provided for, and used by, external users.
Managerial accounting is the name given to accounting systems designed for internal users. The
information provided by financial accounting is summarized in the financial statements:
The balance sheet reports a company's assets, liabilities, and owners' equity.
The income statement reports the amount of net income earned by a company during a period.
Net income is the excess of a company's revenues over its expenses.
The statement of cash flows reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and financing.
Among the users of financial accounting information are correct answers lenders, investors,
company management, suppliers, customers, employees, competitors, government agencies,
politicians, and the press.
Financial accounting information helps correct answers lenders evaluate the cash flows a
business can be expected to generate in the future in order to repay loans. Investors use the same
type of information to assess the attractiveness of companies as investments. Managers use
financial accounting data to formulate company goals, to compute bonuses for employees, and to
illuminate company weaknesses. Suppliers, customers, and employees use financial statements
to tell them about the long-run prospects of a company. Competitors use financial accounting
information to reveal strategic opportunities within their industry. Government agencies and
politicians use financial statement data to bolster political and regulatory positions for and
against companies. Reporters use financial accounting data as background information and to
indicate which companies are undergoing significant changes in financial status.
The practice of accounting involves adherence to correct answers he established accounting rules
as well as the use of judgment. U.S. accounting rules are established by the FASB.
FASB is correct answers a group that sets accounting standards. The XXXX is not a government
agency; it is a private body established and supported by the joint efforts of the U.S. business
community, financial analysts, and practicing accountants.
Debt Ratio correct answers Total Liabilities/Total Assets
Current Ratio correct answers Current Assets/Current Liabilities. Only need a balance sheet.
Return on Sales correct answers Net Income/Sales. Only need income statement
Asset Turnover correct answers Sales/Total Assets
Return on Equity correct answers Net Income/Stockholder's equity. Balance and Income
Statements used.
Price-Earnings Ratio (PE) correct answers Market Value fo Shares/Net Income
Accounting is correct answers the recording of the day-to-day financial activities of a company
and the organization of that information into summary reports used to evaluate the company's
financial status.
Bookeeping is correct answers the preservation of a systematic, quantitative record of an activity.
Without bookkeeping, good business is impossible. An accounting system is used by a business
to handle routine bookkeeping tasks and to structure the information so it can be used to evaluate
the performance and financial status of the business. Accounting information is intended to be
useful in making decisions about the future.
The focus of financial accounting is correct answers the three primary financial statements: the
balance sheet, the income statement, and the statement of cash flows.
, Financial accounting information is correct answers provided for, and used by, external users.
Managerial accounting is the name given to accounting systems designed for internal users. The
information provided by financial accounting is summarized in the financial statements:
The balance sheet reports a company's assets, liabilities, and owners' equity.
The income statement reports the amount of net income earned by a company during a period.
Net income is the excess of a company's revenues over its expenses.
The statement of cash flows reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and financing.
Among the users of financial accounting information are correct answers lenders, investors,
company management, suppliers, customers, employees, competitors, government agencies,
politicians, and the press.
Financial accounting information helps correct answers lenders evaluate the cash flows a
business can be expected to generate in the future in order to repay loans. Investors use the same
type of information to assess the attractiveness of companies as investments. Managers use
financial accounting data to formulate company goals, to compute bonuses for employees, and to
illuminate company weaknesses. Suppliers, customers, and employees use financial statements
to tell them about the long-run prospects of a company. Competitors use financial accounting
information to reveal strategic opportunities within their industry. Government agencies and
politicians use financial statement data to bolster political and regulatory positions for and
against companies. Reporters use financial accounting data as background information and to
indicate which companies are undergoing significant changes in financial status.
The practice of accounting involves adherence to correct answers he established accounting rules
as well as the use of judgment. U.S. accounting rules are established by the FASB.
FASB is correct answers a group that sets accounting standards. The XXXX is not a government
agency; it is a private body established and supported by the joint efforts of the U.S. business
community, financial analysts, and practicing accountants.
