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WGU C213 Topic Six Study Guide
2025/2026 Exam Questions and Answers
100% Guaranteed Success | Already
Rated A+
To diagnose existing problems and to forecast how a company will perform in the
future - 🧠 ANSWER ✔✔Analysis of financial statement numbers can be used to
diagnose what?
the examination of RELATIONSHIPS among financial statement numbers
- ACROSS TIME for the same company
- ACROSS COMPANIES at the same point in time
Areas in which additional data must be gathered, including details of significant
transactions, market share information, competitors' plans, and customer demand
forecasts
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,2
DIAGNOSTIC - identify where a company might have problems NOW
PROGNOSTIC - Assist in predicting how a company will perform in the future - 🧠
ANSWER ✔✔financial statment analysis
- ratios
- common size finaincial statments - 🧠 ANSWER ✔✔common methods of analysis
relationship between financial statement numbers
benchmarks - last year/ last year and this year - 🧠 ANSWER ✔✔Ratios
Created by dividing all financial statement numbers by total sales for the year - 🧠
ANSWER ✔✔Common Size Financial Statements
Relationships between two financial statement numbers
(often used in analyzing and describing a company's performance)
widely used financial ratios - debt ratio, return on sales, return on equity, current
ratio, asset turnover, price-earnings ratio - 🧠 ANSWER ✔✔Financial Ratios
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
, 3
Both diagnosis and prognosis - 🧠 ANSWER ✔✔Which of the following is one of
the purposes of financial statement analysis?
Prognosis
Both diagnosis and prognosis
Diagnosis
Neither diagnosis nor prognosis
Investing decisions - 🧠 ANSWER ✔✔External users of financial statements use
financial statement analysis for
Operating and financing decisions
Investing decisions
Financing decisions
Operating, investing, and financing decisions
The prediction of how a business will perform in the future - 🧠 ANSWER
✔✔When analyzing financial statements, prognosis is
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
WGU C213 Topic Six Study Guide
2025/2026 Exam Questions and Answers
100% Guaranteed Success | Already
Rated A+
To diagnose existing problems and to forecast how a company will perform in the
future - 🧠 ANSWER ✔✔Analysis of financial statement numbers can be used to
diagnose what?
the examination of RELATIONSHIPS among financial statement numbers
- ACROSS TIME for the same company
- ACROSS COMPANIES at the same point in time
Areas in which additional data must be gathered, including details of significant
transactions, market share information, competitors' plans, and customer demand
forecasts
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,2
DIAGNOSTIC - identify where a company might have problems NOW
PROGNOSTIC - Assist in predicting how a company will perform in the future - 🧠
ANSWER ✔✔financial statment analysis
- ratios
- common size finaincial statments - 🧠 ANSWER ✔✔common methods of analysis
relationship between financial statement numbers
benchmarks - last year/ last year and this year - 🧠 ANSWER ✔✔Ratios
Created by dividing all financial statement numbers by total sales for the year - 🧠
ANSWER ✔✔Common Size Financial Statements
Relationships between two financial statement numbers
(often used in analyzing and describing a company's performance)
widely used financial ratios - debt ratio, return on sales, return on equity, current
ratio, asset turnover, price-earnings ratio - 🧠 ANSWER ✔✔Financial Ratios
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
, 3
Both diagnosis and prognosis - 🧠 ANSWER ✔✔Which of the following is one of
the purposes of financial statement analysis?
Prognosis
Both diagnosis and prognosis
Diagnosis
Neither diagnosis nor prognosis
Investing decisions - 🧠 ANSWER ✔✔External users of financial statements use
financial statement analysis for
Operating and financing decisions
Investing decisions
Financing decisions
Operating, investing, and financing decisions
The prediction of how a business will perform in the future - 🧠 ANSWER
✔✔When analyzing financial statements, prognosis is
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
